Taking CPP at 70 in Canada 2025: Is It Worth Waiting?

Age 70 is the latest you can start CPP, and it delivers the highest possible monthly benefit. For Canadians in good health who don't need the income right away, deferring CPP to 70 is one of the most powerful retirement income strategies available. Here's everything you need to know.

How Much More Do You Get at 70?

For every month you defer CPP past age 65, your benefit increases by 0.7%. From 65 to 70, that's 60 months:

• 60 months × 0.7% = 42% increase
• Maximum CPP at 65: ~$1,433/month
• Maximum CPP at 70: ~$2,035/month
• Extra monthly income vs. starting at 65: ~$602/month
• Extra annual income: ~$7,224/year — for life

The Break-Even Age

If you defer from 65 to 70, you give up 5 years of payments. The break-even — where lifetime CPP totals are equal — is approximately age 82–83.

If you live past 83, deferring to 70 results in more total lifetime CPP income. The longer you live, the more you gain from deferring.

CPP at 70 + OAS: Maximum Government Income

OAS can also be deferred to age 70 (increasing by 0.6%/month = 36% more). If you defer both to 70:

• Maximum CPP at 70: ~$2,035/month
• Maximum OAS at 70: ~$989/month (36% above the age-65 amount of ~$727)
• Combined maximum: ~$3,024/month ($36,288/year)

This is all guaranteed, inflation-indexed, and lasts for life — making it extraordinarily valuable for long-lived retirees.

Who Should Defer CPP to 70?

Deferring to 70 makes the most sense if:

• You're in excellent health with reasonable expectation of living past 83
• You have other income sources to bridge the gap (RRSP, TFSA, workplace pension, part-time work)
• You want to maximize guaranteed, inflation-protected income in your later years
• You're concerned about outliving your savings
• Your spouse has lower income — higher CPP means more pension income splitting
• You want to reduce RRSP/RRIF drawdowns (lower CPP = less taxable income in your 60s)

How to Bridge the Income Gap from 65 to 70

The biggest challenge with deferring CPP to 70 is funding 5 years of retirement without CPP. Common strategies:

• RRSP withdrawals: Draw down RRSP between 65–71 (before mandatory RRIF conversion at 71)
• TFSA: Withdraw tax-free to cover expenses
• Non-registered investments: Sell investments with capital gains taxed favourably
• Part-time work: Even modest work income can cover the gap
• Workplace pension: DB or DC pension income can substitute for CPP until 70

Risks of Deferring to 70

• Health deterioration: If your health declines, you may wish you had started earlier
• Longevity risk reversed: If you pass away before 83, you'd have received more by starting at 65
• Complexity: Managing bridge income for 5 years requires planning
• Survivor impact: CPP survivor benefit is based on the deceased's CPP — a higher CPP at 70 means a higher survivor pension for your spouse

The Survivor Benefit Advantage

A higher CPP at 70 doesn't just benefit you — it also results in a higher CPP survivor benefit for your spouse after you die. This is an often-overlooked advantage of deferring: your spouse inherits a higher income stream if you predecease them.

Frequently Asked Questions

Is 70 really the last age I can defer CPP?

Yes. Age 70 is the maximum deferral age. There is no benefit to waiting past 70 — you do not receive any further increase after your 70th birthday. In fact, if you haven't applied by 70, Service Canada will automatically pay you retroactively for the month you turned 70.

Can I defer CPP to 70 if I'm still working?

Yes. You can work and defer CPP simultaneously. If you're over 65 and still contributing to CPP, those contributions create Post-Retirement Benefits (PRBs) that stack on top of your eventual CPP amount.

What if I die before collecting CPP at 70?

If you die before starting CPP, your estate does not receive a lump sum for the foregone CPP. However, eligible survivors and children may receive survivor and children's benefits. This is a real risk of deferral — consider your health carefully.