The CPP uptake decision is one of the most consequential financial decisions that most Canadian retirees will make.
The difference between optimal and suboptimal claiming can measure in the hundreds of thousands of dollars of expected lifetime income.
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When Should You Start CPP?
The Canada Pension Plan (CPP) is a government pension program that provides financial support to retirees in Canada. Many Canadians wonder when the best time is to start taking CPP benefits. There are a few factors to consider when deciding when to start CPP, such as your financial situation, health, and expected longevity.
One important factor to consider when deciding when to start CPP is your financial situation. If you are in need of the money right away, it may make sense to start taking CPP as soon as you are eligible, which is at age 60. However, if you are able to wait and have other sources of income, such as savings or a retirement plan, you may want to consider delaying CPP to receive higher benefits in the future.
Another factor to consider is your health. If you have a chronic health condition or a family history of early mortality, it may make sense to start taking CPP benefits earlier rather than later. On the other hand, if you are in good health and expect to live a long life, delaying CPP benefits can result in higher monthly payments in the future.
Lastly, consider your expected longevity. The longer you wait to start taking CPP benefits, the higher your monthly payments will be. If you expect to live a long life, delaying CPP benefits may result in greater overall benefits over time.
Ultimately, the decision of when to start CPP benefits is a personal one and will depend on your individual circumstances. It may be helpful to speak with a financial advisor or retirement planner to help you make the best decision for your retirement plan.
In conclusion, when deciding when to start CPP benefits, consider your financial situation, health, and expected longevity. Take the time to carefully evaluate your options and make an informed decision that will best suit your retirement needs.
Always interesting to see the comments. The fact is if you NEED the money of course you have to take it but hopefully not before 65. If you can manage than delaying as Ben has started is the best “financial “ decision. From what I get from people is that they want their money because they fear that they will not get their share before either dying or some illness that will render them unable to enjoy it. It is really fear that pushes people to take it all before 70. When people hear the stories of so and so dying after only one or a few years of collecting then they just can’t hear anything else – this is why many take early aside from the % of people who actually need it. Just my opinion