4 Advantages to take CPP at age 60 | Canada Pension Plan Explained
The Canada Pension Plan CPP was created to provide income assistance during retirement. If you qualify, income can start as early as age 60 with a 36% reduction of income, and can be delayed until age 70 with an increase of 42% in income.
In this video, we examine 4 Advantages to take CPP at age 60. Everyone’s individual situation must be considered before adopting any of the advantages of taking CPP at age 60.
Video Timestamps:
00:00 Introduction
02:26 CPP Overview
04:41 CPP Breakeven Point
05:25 Advantage #1 to take CPP at age 60
05:47 Reason why to take CPP at age 60 – You Need the Money
06:09 Reasons why people retire early
08:37 Show Me the Money!
09:12 Longevity
10:41 Avoiding OAS Clawback
12:20 Seeing the Outcome before you commit to them
12:31 Financial Dashboard
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As Canadians approach retirement age, many are faced with the decision of when to start taking their Canada Pension Plan (CPP) benefits. While the standard age to start receiving CPP is 65, it is possible to start taking benefits as early as age 60, and there are several advantages to doing so.
1. Early retirement: One of the primary advantages of taking CPP at age 60 is the ability to retire early. For many Canadians, the opportunity to stop working and enjoy their retirement years is a major incentive to start collecting CPP at the earliest possible age. This can be particularly appealing to those who may not have significant retirement savings and are looking to replace some of their income.
2. Flexibility: Starting CPP at age 60 offers a greater degree of flexibility in terms of how you can plan your retirement income. By supplementing your income with CPP early, you may be able to delay drawing from other sources of retirement income, such as registered retirement savings plans (RRSPs) or tax-free savings accounts (TFSAs). This can be particularly beneficial for those who wish to minimize withdrawals from these savings accounts to allow them to continue to grow tax-free.
3. Longevity: Another advantage of taking CPP at age 60 is the potential to maximize the overall lifetime benefit you receive from the plan. While starting CPP early will result in smaller monthly payments compared to waiting until age 65, receiving benefits over a longer period can result in a greater total amount received. This can be especially beneficial for individuals who have concerns about their life expectancy or who have a family history of longevity.
4. Early access to funds: Taking CPP at age 60 may be advantageous for those who require additional income to cover living expenses or unexpected financial needs. By starting CPP early, individuals can access funds that can help support their lifestyle or provide a financial cushion in the event of unexpected expenses.
It’s important to note that while there are advantages to taking CPP at age 60, there are also potential downsides to consider. Starting CPP early will result in reduced monthly payments compared to waiting until the standard age of 65. Additionally, if you continue to work while receiving CPP benefits, your income may be subject to a clawback if it exceeds certain thresholds.
In conclusion, while there are several advantages to taking CPP at age 60, it’s important to carefully weigh the pros and cons based on your individual financial situation and retirement goals. Speaking with a financial advisor or retirement expert can help you make an informed decision about when to start receiving CPP benefits.
I applied last year and I have been overseas so I didn’t see the letter of acceptance, calling them from here is a nightmare, I paid cpp through the years but I was a self employed musician, what could get you rejected for your pension at 60. I believe when I played the Olympics in Calgary for the opening ceremonies with Ian Tyson I paid CPP, there were other jobs too through the years, my question is did I pay enough to even expect the minimum?
So, i have worked so far 38 years. My 30 and out is end of this year. I'll be 60 this nov. Laid off now till April. Last 3 bad years,lay-offs, GM. Auto worker.
I maxed out my payment for 27 years. 6 really low years, and 2022 to 2004 off no work.
? If I decided to delay my cpp for a few years and live off Rrsp and pension. Will I gain more or lose more in cpp payments because i won't be paying into cpp in 2025. I going to retire. CRA says 800 now at 60.
Thanks. Vince
I took my CPP because of the COVID 19 Pandemics.
Love the videos and expert, technical advice! I have a question that I’m not sure was addressed in the videos or comments. ( if it was I apologize for not picking up on it..). I have a Canadian Armed Forces pension that I’ve been drawing since 2017. I’m indexed. I’m also in a second mini career but retiring completely in 2025. My Army pension has a Bridge benefit that gets clawed back when I hit 65 earlier if I opt to take CPP at 60. I’m currently considering waiting to 70 but perhaps 65 is the better option. I think if I take CPP at 65 the Bridge benefit loss is almost cancelled out or equalized by the CPP benefit I’ll get. But waiting the 5 years might be better if I can eat the drop in my pension for the 5 years. Do you have general advice for those of us with a bridge benefit? Thank you Aaron!
I would grab it while you can. It’s insolvent. It’s been overloaded with older new citizens and bankrupt
I'm an old Gen X . The government f@ck@d me , I can't retire till 68 now . Scam , and I am very angry . That's anywhere from 30 to 50 percent of my retirement. Bastards.
Embarking on this new chapter of retirement in Canada? Remember, proactive financial planning is the key to unlocking a secure and fulfilling future. Instead of solely relying on CPP, OAS, and GIS, consider staying invested with a trusted financial advisor. They can guide you towards strategic investments, ensuring your retirement is not just stable but prosperous. Take control of your financial destiny and embrace the retirement you've always envisioned!
CPP is peanuts, barely pays for my home heating bills in the wintrr.
Everything explained is based on the maximum. If you didn't contribute the maximum you don't get that income.
Saw too many people during covid that got the virus, got complications from it beit stress or health and passed before the age of 60 didn't even have opportunity to apply. Take it early if you can.
If you don't take cpp and you die, what happens to your money, does some go to spouse?
Why can the government keep most of a deceased spouses cpp?
I'm 70 years old took my pension @ 60 and retired do you think at 86 you are going to do a lot of traveling you have only so many good years left, money at your later years how much do you need.
I am getting pwd check for last 3yrs. I have not worked and don’t plant to again I’m 59. I want to get my CPP at age 60 but will it come off my pwd check? Is CPP like an income where i can make 15 k a yr with out my pwd check being touched? Appreciate your help
Sweet spot age 70. ✅
Another bigger factor is COL. I had 2 live in a high renyt area 2 retauin employment BUT when I retired 2 Elliot Lake ON, I reduced my COL by 400%, hence, a huge "raise"! Plus, lower stress, finasncial/economic/stress. PLUS, I just happened 2 retire 2 "God's country" a yr b4 covid hit!
CPP CAN'T PAY RENT
Covid took my business away, so i applied at 62.
I took it at 60, I wanted to invest it myself. I continued to contribute for a couple years, and I retired at 63. My CPP is at $884 now.
Take it early as you are not accounting for cost of living raises I took mine at 50 it was 1k it has climbed to almost 1300 now at 55 so your friggen doesn't add up ,u loose very little if you plan and die then you get zero .best early
Real inflation in Canada is 12 percent! If you wait you are paid in debased currency. The government rate is a cruel joke.
If i have no plan of retirement. Should i take cpp at 60?. Thanks
None of these retirement benefits videos address taking the benefits at 60 but still working and paying into them until your ready to fully retire? What would be the advantages and disadvantages of doing that?
The break even age (assuming I have the contribution room in my RRSP and earn 7.5% return before and after retirement) is age 93 .. if I live an average life (age 86) the fund I created ($152,470) will pay me out at about $200 a month more between 70 and 86 than the max CPP payment .. food for thought
What about taking it at 60 and putting it in tax free savings for five years
Tax is theft. Fing government ass holes.
If you take CCP at 60 and continue to work and pay into CCP does your CPP payment increase? If so how does it work?
Or you took Level income option on your DB pension and it drops at 65, need at least the CPP at 65 to maintain same income.
LOL imagine you die when your 60 and they give your wife a one time payment of $2500 after you just payed in for 40 years, now that's an insane mandatory scam. canada is garbage
Best to take it early, increase your quality of life and enjoy it while you are still healthy. Who knows whats down the road after 60
It’s better to get it at 60 so you can qualify for GIS when your turn 65 which is not taxable.
For many years I worked in Canada. Now I am in Europe. I am over 65 years old. I am trying to find my record of total number of my employment there. And Projected estimate of what I will get. Also the link about how sign on to My Service Canada pages. I have spend days to get record of my employment and what I am entitled to. Please help with clear instruction if you could.
effective financial management made me rich and it is all you need if you want to build a strong financial future tomorrow. I started with 1000USD, 3 years ago I invested in a diversified stock market and fast forward to now I am worth 500000USD and am currently finishing my 8 unit apartments. I'm only 35 years old. Diversified stock investments have always proven to be very profitable, especially with the help of experts.