Updated: April 2025  |  bremo.io financial guides

Taking CPP at 60, 65, or 70 — Which Age Is Best?

One of the biggest retirement decisions Canadians face is when to start collecting CPP. You can take it as early as 60 or as late as 70 — a 10-year window that dramatically affects how much you receive every month. There is no universally correct answer, but understanding the math can help you make the best decision for your situation.

The Basic Rules

The standard CPP start age is 65. Starting before 65 means a permanent reduction; starting after 65 means a permanent increase. These adjustments apply for the rest of your life.

• Each month before 65: benefit reduced by 0.6% (7.2% per year)
• Each month after 65: benefit increased by 0.7% (8.4% per year)
• Maximum reduction at 60: 36% less than your age-65 amount
• Maximum increase at 70: 42% more than your age-65 amount

Example: CPP at $1,000/Month at Age 65

If your CPP entitlement at 65 is $1,000/month, here is what each start age looks like:

• At age 60: $640/month (36% reduction)
• At age 65: $1,000/month
• At age 70: $1,420/month (42% increase)

The Breakeven Analysis

The breakeven age is when cumulative payments from waiting equal what you would have collected by starting early. If you outlive the breakeven age, delaying pays off.

Breakeven: Age 60 vs. Age 65

Taking CPP at 60 gives you 5 extra years of payments, but at a reduced rate. The breakeven point is approximately age 74. If you live past 74, you would have collected more by waiting until 65.

Breakeven: Age 65 vs. Age 70

Delaying from 65 to 70 means 5 years of missed payments, but higher monthly amounts. The breakeven is approximately age 83 to 84. If you live past 83, delaying to 70 was the better choice.

Factors That Favour Taking CPP Early (Age 60-64)

• You have a serious health condition or shorter life expectancy
• You need the income now — you have lost your job or have no other retirement savings
• You have high-interest debt to pay off
• Your family history suggests a shorter lifespan

Factors That Favour Delaying CPP (Age 66-70)

• You are in good health and expect to live into your 80s or 90s
• You have other income sources to bridge the gap (RRSP, workplace pension, part-time work)
• You want to maximize inflation-protected lifetime income
• You have a spouse — delaying can maximize survivor benefits
• You want to reduce longevity risk

The Tax Consideration

CPP is taxable income. If you are working and receiving CPP simultaneously, your combined income could push you into a higher tax bracket. If you retire early with low income, taking CPP at a reduced rate may result in less tax overall.

CPP and GIS Interaction

If you expect to qualify for the Guaranteed Income Supplement (GIS), be aware that CPP income reduces GIS. For very low-income seniors, the math is complex and worth reviewing with a financial advisor.

What About Inflation?

CPP payments are indexed to inflation annually. A larger base payment from delaying grows faster in absolute dollar terms. Over 20 to 25 years, this indexing makes delayed CPP even more valuable than the raw breakeven analysis suggests.

The Simple Rule of Thumb

For most Canadians in average or better health with some savings, delaying CPP to at least 65 — and ideally 70 — produces better lifetime outcomes. The 42% bonus for waiting until 70 is one of the best guaranteed returns available in Canada.