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CPP deferral factors, in plain terms

CPP lets you choose when to start — and that choice changes your monthly payment for the rest of your life. Here is what you actually need to know.

The basics

  • •You can start CPP any time between age 60 and age 70.
  • •Age 65 is the "standard" age — no penalty and no bonus.
  • •Start earlier than 65 and your payment is smaller, permanently.
  • •Start later than 65 and your payment is bigger, permanently.

How much it changes

  • •Before 65: your payment drops by 0.6% for every month early — about 7.2% per year.
  • •After 65: your payment rises by 0.7% for every month you wait — about 8.4% per year.
  • •Start at 60: roughly 36% less than at 65.
  • •Start at 70: roughly 42% more than at 65.

Why it matters

  • •The change is for life — a bigger (or smaller) cheque every month, indexed to inflation, until you pass away.
  • •It also flows through to survivor benefits and some disability provisions.
  • •Delaying can keep your taxable income lower in your 60s, which can help avoid the OAS clawback and age-credit phase-outs.
  • •A bigger CPP later can also replace other accounts you would have had to draw down, preserving TFSA and non-registered money.

The trade-off

  • •Start early and you get more cheques, but smaller ones.
  • •Start late and you get fewer cheques, but bigger ones.
  • •The two paths cross over — the "break-even" age is usually around your early-to-mid 80s. Live longer than that and delaying tends to win; die sooner and starting early tends to win.
  • •There is no single right answer — it depends on your health, other income, and tax picture.

Good to know

  • •You do not have to be retired or stop working to start CPP — but you must have made enough contributions over your working years.
  • •If you keep working while taking CPP before 65, extra contributions can still increase your benefit (the post-retirement benefit).
  • •The Income Sequencer tests every CPP age from 60 to 70 and every OAS age from 65 to 70 with its withdrawal-policy search. It prioritizes sustainable spending, then total tax exposure; when income-target mode is on, benefit ages and spending are optimized together.

See it in your own plan

Open the Income Sequencer and let it test CPP start ages for you.

Try the Tool