Age 65 Is The WORST Time To Start CPP

[@seang3538]

None of this matters to me, it's about cash flow only. Trying to justify the ROI is meaningless because if you die before taking CPP, you get ZERO.

[@josd6387]

Yes, but there is also a survivor's benefit.

[@martik778]

@@josd6387 Which is a complete joke. Usually between 0-36%

[@2kellydex]

@@josd6387 at that is only for a legal spouse. no other beneficerees

[@CRuM770]

Partially agree, but guestimates of life expectancy are valuable in optimizing the approach. Life expectancy is, to a large extent, hereditary, with more weight on the mother's side. My father is still kicking at 90, but my mom died at 77 so the national average of 85 is probably a good guess for me. I don't do any high risk activities and I'm not in a high risk job. I find this video suffers from the common affliction of percentagitis. Percentages don't really matter at that point.so I look at cash flow like you, but I also look at the total benefit over my expected life. For me if I live to 85, the calculation has me starting CPP at age 69, but if I'm like my mom and kick the bucket at 77, then I will get the maximum benefit if I start drawing at 64. In the end, I will probably do the exact opposite to what this guy said and begin drawing at 65.

[@chriskitchen4772]

Does not matter if you are dead.🤣🤣🤣

[@Bkamaclean]

I started collecting CPP at age 60 and continued to work so kept contributing to CPP and my yearly CPP is increased yearly while collecting and working. I am 66 now and still working and collecting.

[@T3glider]

None of the CPP contributions you have made since you started collecting CPP have been credited to your CPP benefit. You’ve still paying but it is just a tax now. The increases you have seen were just the normal inflationary adjustments.

[@djb-w8m]

@@T3glider I am 64 and waited , now that i need those funds I am way ahead monthly as a result of waiting that 4 years and it adds up

[@T3glider]

@@djb-w8m Agreed, but you missed my point. Not only did he start his CPP early, he kept working! That meant that CPP contributions continued to be deducted from his pay each week without him seeing any increase in his CPP benefit as a result of those additional contributions. The increases that he is getting are only the normal increases due CPI indexing, and not related to his continuing to work.

[@66marbor]

If you take it at 60 you'll have almost 50 000 in 5 years. At 65 and 15000 it will take 10 yrs to catch up...early looks better to me but I'm no expert.

[@defenderoftheuniverse]

​@@66marbor Exactly, you'll be 75 before you start losing money. What are you going to be doing after , if you're lucky enough to live that old.

[@monex90210]

Your analysis is correct but misleading. Of course when you use %'s when you start from a smaller # you gain in % will be larger and inverse the other way. The conversation should be entirely focused on $ and not %'s.

[@JohnHobbs-o3z]

I pretty much stopped contributing to cpp by the time i was 58,or at least very little,so i went through a lot of calculations ,and decided 62 was right for me,i had a bit of a unique situation since i was self employed and covid, changed things,it all depends on your situation.

[@parkerbohnn]

I gave up working at age 35 almost thirty one years ago. I'm taking my CPP at age 70 because most of my relatives lived well into their nineties. A few made it past one hundred. I can get my OAS if I leave the country for a place like Mexico otherwise I get fully clawed back on my OAS. At the same time I can break the bank by earning double interest on my money as the Peso appreciates against the Canadian dollar and Mexican rates stay in double digits.

[@TheSerenityV]

Completed the same assessment after retiring at 55. Now in early 70s with many wonderful years of travel while at the same time setting aside some money. Taking CPP early has given myself a great quality of life. Average life expectancy for a male is 82 roughly. Most likely health outlook is most likely not being able to travel significantly by 80. So maximizing $ in in CPP later in life is flawed.

[@GL-ls1eo]

Based on your chart, if I take CPP at 60 I accumulate more money than 65 if my life expectancy is 70. Not until around 74/75 will I have accumulated around the same amount. So you really need to decide or gamble how long you expect to live. I am tending to lean towards taking at 60 regardless.

[@markbeaulieu8004]

I thought so as well but the average life span of a Canadian is over 80. I cant leave that kind of money on the table. Our plan is to melt down the RRSP's/GIC's until 65 then take the benefits of full CPP/OAS. Delaying until 66 is really only 1%. In his scenario, I would not want to give up $15000 to gain 1%.

[@set921]

100%. My parents, aunts and uncles have averaged 92 so far. They're all still alive!! Haha. No way I'm starting at 60.

[@robthesailor]

I appreciate the video. Very clear and concise. The one key point that often is failed to be mentioned is that all of those increases in payments are at zero investment risk. Every alternative that you mentioned have a higher than zero risk for exceeding the returns from waiting/delaying CPP. For the conservative investor who does not need the money from CPP to make their budget work, or have a known shortened life expectancy, I cannot think of an alternative no risk investment that can guarantee the same or greater returns than being offered by CPP to delay until 70. Audits conducted on CPP show stable for at least next 75 years, so chances of them not providing my pension increases are negligible.

[@planeasy]

Great comment about considering CPP as a “no risk” investment, an important factor that is often overlooked.

[@garth217]

I don't dispute your comment. The only thing I'll say is you just never know when your " day" is going to arrive. As a retired first responder I'll say that infants, children and teens never make it to adulthood let alone 65 or 70. For myself it's not about getting zero risk investment, it's about maintaining a standard of living during my Go Go years. My Bridge Benefit drops at 65 in my pension. At 63 my CPP will replace that drop plus a few extra dollars. CPP is tied to inflation as is my pension. I live well now on just my pension. I haven't taken a dime from my RRSPs and too young for OAS. There's no way I'm going to meltdown my RRSPs early to just get a secure increase in CPP yet have none of my own money left.

[@planeasy]

@garth217 Yes every situation is different! Every retirement plan is unique! What works for one person may end up backfiring for another. Always have a retirement plan that is unique to you and your goals.

[@Mombomb_Ca]

How come no on talks about collecting at 60 but continuing to work and recontributing to your CPP?

[@MsLinda165]

It depends on health. He's assuming people will live to a ripe old age. I'm considering taking mine at 66, because this chart makes sense. I'm healthy, and I have no meds as of yet, but I don't have a private pension, only my investment savings, which fluctuate, and indeed, in 2008 I lost 40% of it. I'm not part of middle class, I'm below poverty level, and yet I chose to delay cpp til 65, somehow thinking that's the magic number. I can wait til I'm 66 thanks to frugal living and watching my pennies. This is an interesting concept.

[@johnsmith100]

People who have low income, and therefore can be eligible for GIS, better take CPP at age 60, because the lower taxable CPP income will allow them to get a higher free of tax GIS. Minimize your taxable income and you’ll get a higher non-taxable GIS. This is because the higher income you have, the lower tax free GIS you will receive.

[@donnagustavson7135]

Both my husband and I took ours at 60 - there’s no beneficiaries to all the money on deposit from the employee/employer deductions that were taken. Not willing to leave anything on the table for the gov when I’m in the ground. Also, all CPP received is added to your income and fully taxable.

[@djb-w8m]

thats why you check the box to the feds for 15% tax to be taken off

[@donnagustavson7135]

@@djb-w8m not handing the Feds money in advance. Been there, done that, and then I get it back without growth. Self-employment expenses can provide tax w/o's that can offset the 15%.

[@johnoneil5728]

My advice is simple...take it when you retire. Taking it while you're still working makes it likely you could lose too much of it in income tax.

[@Bkamaclean]

Not if you are careful how much you earn working.

[@idarthcadeus]

@Bkamaclean, what amount earned is ideal ??

[@ryyback1969]

@@idarthcadeus "You can still work if you are receiving a CPP retirement pension, without reducing the pension amount. In fact, you could increase it by means of the CPP post-retirement benefit. If you work while receiving your CPP retirement pension and are under age 70, you can still make CPP contributions." But you have to remember, the more you make, the more income taxes that are taken, depending on your tax bracket.

[@Poorzgolf]

Crazy that billions are made off the CPP by investors, yet those that pay in are paid peanuts. And those that die and don't have a spouse, nothing is paid.

[@davidparkes7226]

If you don’t need the money and plan on being healthy wait till 70 , where else can you get a return like that .

[@steveh6976]

If you could guarantee life expectancy, it makes sense to wait as long as possible. But as you know the only guarantees in life are death and taxes, and death is a big unknown. Also, everyone's situation is different. I was let go at 58 and struggled to find another job so was forced to take CPP at 62 or lose my house. Not ideal, but held off as long as I could. It's not as simple or cut and dry as you make it out to be

[@jeffery672002]

Why do people always ignore the missed monthly benefit payments when deferring? You have to subtract those from your returns if you defer. People who talk about this are typically only focused on the monthly benefit you get when you take it, assuming people spend all the money they get and don't save it. My view may sound a little counterintuitive but, if you don't need it take it earlier and invest it and you'll be ahead. If to do need it (as in you'll spend it all) tough it out and defer as long as you can or for some years, ensuring a larger income later in life by scrimping today.

[@wrongwayconway]

I took CPP at 62, continued to work so I invested the monthly benefit into my RRSP, TFSA, GICs and ETFs. Feel pretty good. Now I'm retired and have a nest egg to draw on until I get OAS at 65.

[@paulinanelega]

re: Nominal Calc: Shouldn't the 2.1% inflation adjustment be applied to Column C, and then calculations extended out, rather than adding it as a simple % to Column F?

[@planeasy]

Great comment! Yes, that would be more precise! But there are other ways the analysis could be more precise, like including the drag from additional zero earning years from 60-65. As always, this type of planning should be customized to each individual situation.

[@unimogdave]

Interesting seeing people total what they would receive in 5 years if they started at 60 as if they were putting that money in the bank. I retired at 55 and next year I turn 65. My RRIF runs out and after the brutal inflation of the past four years I need every bit of the max payout and OAS is a bonus.

[@robleonard6245]

If you take a 60 and continue to work and contribute to CPP your rate goes up by how much?

[@fernandopena386]

You are not considering the financial cost of not collecting the cop every year it is delayed. That has a big impact on the analysis.

[@justinbrowns1945]

Good video however you should look at the numbers from 60 on ward and see the AGES you would have to live to break even if you took it at age 60 etc. What age would a person have to live if they postponed taking CPP. Also isn't 1,364.60 per month for new beneficiaries who start receiving CPP at 65 is the max. Is what you see in CPP what you get? Or can it be Less.

[@chm5750]

You're only showing the incremental increase from year to year, instead of the breakeven based on age to account for the loss of pension on the years that have been delayed. Who cares what the incremental increase is, if you cannot make up the lost pension in the future by delaying.

[@planeasy]

There is a breakeven analysis mentioned in the video and a link to the breakeven analysis in the video description. CPP is a complex topic, more than could be covered in a single video, you should always get advice for your specific situation.

[@quepasa2781]

I took mine at 60 to reinvest the money as it loses value, bought metals and income stocks. My wife still works making good money and my health isn't good so whatever.

[@JohnHobbs-o3z]

Good point,every body is unique.

[@JB-lc2fn]

Great idea.Cheers

[@Arasteele]

It's a gamble. While delaying gets you more money, dying before availing yourself of your CPP gets you nothing, rendering delaying pointless. Life truly is a gamble, but especially so for retirees. Ya roll the dice, flip a coin, and take your chances.

[@set921]

I wish you would use "average" CPP benefit. Most of us are NOT getting those amounts.

[@ralphruhs7894]

If one waits till they are 66 then it would take around 15 years to make up for the-15,000 not received in year 65. Therefore, they would break even at year 80. That calculation needs to be considered, I would think. Or, am I missing something?

[@blainedonais5059]

I would like to see the calculation accounting for taxation. All interest earned on taking the moneybout early and investing it is taxable. If you are doing this while still working it will be a higher marginal tax rate. The percentage increase for leaving it in is not taxed while it is still in the program.

[@RonaldH]

One question I have is on the timing in the year when it's best to start CPP. If you start in December, you receive the cost of living adjustment (inflation based on CPI) in January. If you start in January, you miss out on the cost of living adjustment, but receive the average wage increase adjustment. So, if inflation is higher than wage growth, better to start CPP in December. If wage growth exceeds inflation, then start CPP in January is better. Myself, I'm planning on waiting till age 70 -- and do an RRSP meltdown before starting CPP. If waiting till age 70, I just wonder if it's better to start CPP in January or wait till my birthday several months later?

[@garth217]

RRSP meltdown only saves the government paying you YOUR MONEY. They have held it since you were 18. If you have significant RRSP you will pay significant taxes again while waiting until 70 to get a dime back of your money...burning through your money in hopes of getting more of your money is insane to me. I'm taking cpp at 61. I'll take less of MY money at a time for longer.

[@byronofcalgary6985]

the early vs late penalties and bonuses are linear.. obv a % isn't... nice clear charts though makes another thing clear... start date vs End Date or death... from age 60 on... you are giving up +/- $10,000 to get a +/- $1,000 increase.. ...that takes +/- 10 years to recover ! ! ie if you collected for 15 years from 60 - 75... you would be up +/- $5,000 and you would have to live to 80 to double the gain vs the loss at 60 ...

[@PGcrazy6]

If a person is collecting CPP disability will the government consider that as taking CPP Benefits early ? If yes, I strongly personally feel that it shouldn't and the disability it should be treated as collecting from an government insurance policy and not the regular CPP ?

[@parkerbohnn]

You mean goes up with the fabricated inflation rate which is much lower than the real or true inflation rate.

[@ThisOldMan-ya472]

I was MOST surprised the % steps were not based on a compounding annual structure.

[@kenf-n3l]

The benefit of delaying from 65 to 70 is for certain a bit of a head spin expressed this way. One kinda needs to stay focused on the end goal, not the opportunity costs.

[@enjoythedreamlife5658]

It all depends on the taxpayer. If he or she did not save, or have other pensions in place, they need to delay and work longer. At the end you can calculate ROR all day long, THe person who does not save will not matter, they need the money to live. besides 5% increase on cost of living for 64 is less than at 65 taking later is NOT the worst time , taking it early IS

[@AmG895]

Thank you. Your videos are very helpful.

[@1dilligaf]

Well, I don’t have a choice but to take it at 65 I went on disability at 59 and that ends at 65 so not much of an option for me

[@planeasy]

Yes! And in fact, my understanding is that there is no option to delay CPP if you are receiving CCP-D, it’s an automatic rollover into CPP, is that you’re understanding as well?

[@1dilligaf]

@@planeasy yes that’s what I was told would happen.

[@timh5168]

I'm not sure that's correct. I heard that CPP Disability automatically converts to regular CPP at age 65 but you don't have to take CPP at that time and can delay it until any age between 65 and 70 if you choose. You have to contact Service Canada and advise them of your wishes 6 months before you turn 65. I think you should look into it.

[@1dilligaf]

@@timh5168 you’re probably right, but give it some thought if you’ve been on disability because you can’t work how is it possible to postpone your CPP payments? If you can’t work because of a disability and you’re not getting disability payments, you have no choice but to take your CPP. Even at 65 you still need to pay for a place to live and eat.

[@timh5168]

@1dilligaf Yes, it would depend on your situation, savings, inheritance, etc. Everyone is different, I'm just saying I believe it's an option.

[@bugsyboy5323]

So I’m retiring at 61 and deciding to live off my non-registered savings until 65 at which point I will take my CPP. I will get more CPP than if I were to take it at 61 when I retire - is this correct?

[@planeasy]

It is correct that your CPP benefit at 65 will be higher than at 61, but there could be a “drag” on that increase due to the additional zero earning years being added to the calculation between 61 and 65. This means the increase you experience between 61 and 65 could be less than someone else who has already reached maximum CPP. As always, you want to make a retirement plan specific to your situation.

[@parkerbohnn]

Take it in the month before the month of your 70th birthday they always start paying CPP the month after the month you state.

[@sunysuny3030]

No, you are working and contributing so no increase

[@kevingreig8384]

What if you have a pension that has a bridge benefit ending at age 65?

[@garth217]

I'm in that situation. I just took CPP when I turned 61. I'll collect for 4 years before my bridge Benefit drops off. That money is going into my TFSA..even if I spend 50% of it I'm going to be ahead . Having a pension makes all the difference

[@markbeaulieu8004]

@@garth217 you will never make the interest in a TSFA that you are making on the CPP every year AND its guaranteed.

[@T3glider]

That was fantastic.

[@LearningandTechnology]

My plan is to take it at 60 Then, I’ll use it to buy cans of soup at $2 each. Once I'm 70, those same cans of soup will cost $4 So I’m effectively doubling my money! 100% return! 😂

[@papatomsthoughts]

Good to say this, but health and being productive are major factors. It is easy to say, don't take CPP until 70, then you only have about 10 years, on average, of retired life. So work 55 years, enjoy retirement for 10. Government for sure wants you to keep paying.

[@tonepilot]

Very helpful thanks

[@Pam7780]

The Federal government is hoping everyone will delay CPP until age 70 knowing full well some recipients of CPP won't live to see age 70.

[@perkunast9680]

Even if you do make it to 70 you may only get like 2 years and then your dead.

[@maxpayne7419]

Excellent analysis and explanation 👍 I haven’t seen anyone explain it this way and so clearly. I have a question about the Adviice platform’s CPP calculation. Is there a way to identify the CPP years that can be removed from the calculation due to a maternity leave? My wife took 10 years in total out of the workforce to stay home with our 2 kids.

[@planeasy]

Thank you! Right now the platform won’t automatically calculate Child Rearing Drop Out (CRDO), but that functionality is coming soon, in the meantime you can approximate it by bringing income in those years close to the average earnings.

[@garth217]

You just go to Service Canada and punch in your info and you will get a very close estimate

[@DoneByD]

@@garth217can you give me the website address in service Canada? I sort of looked around today but didn't see anything other than your CPP estimated monthly benefits statement. I don't see anywhere in the MSCA where you can input information on the child rearing dropout provisions? I do know Doug Runchey from DRPensions will do calculations for a fee to provide that info.

[@JohnHobbs-o3z]

Very interesting,my wife,exactly the same,2 boys 5 years apart,wife took about 10 to 11 years off,the child rearing benefit ended up giving her about 20 to 25 % more in CPP.people need to not forget about this.

[@parkerbohnn]

They take 38 years and throw out the 8 worse I think from age 18 omward. Onward...

[@e.a.p3174]

I’m getting 8% more every year if I wait, I am in a high tax bracket and half my CPP would be gone. I plan to work into my 70s since I enjoy my work. So if I take it in when 70 I get 40% more per month. I don’t smoke, I don’t drink, and I am in great shape so the odds are I am better off. If the Lord takes me home early, then I guess missed out. On the flip side I’m financially independent so my life is not better or worse either way

[@canuckfixit7722]

As with all these CPP videos you have to take into account your life expectancy. Defer CPP too late with the intention of collecting more each year and you'll leave allot of money on the table should you pass away earlier than expected! ALSO let's not overlook the risk that the government can claw back benefits at any time and those benefits a ready paid can't be retracted.

[@debbielockhart7762]

Gover mentioned doesn'tclaw bal CPP nor will it. Don't make important lf decisions based on paranoia.

[@garth217]

Interesting video. After looking at many financial info videos like yours the one thing I've learned is there are no perfect choices for everyone. Each person is different. Eg. There's a philosophy that you should meltdown your RRSPs and live off that income and delay CPP until 70. If I do that ill be taking $25000 / year from age 60 .thats enough to bump me into tax bracket and results in significant OAS clawback, so its a loose loose for my situation. Ill take it age 63. My estimate shows $1000/ month. At 65 my Bridge benefit drops ( 900) but ill get 1000 from CPP so zero changes in lifestyle then at 65 OAS kicks in and i stay in the same tax bracket and get a much smaller OAS clawback. My point being..there is no magic bullet. Look and listen to these videos and then apply what you've learned to your own circumstances. Above 65 you really shouldn't be considering INVESTMENTS other than very conservative ones ( high interest savings account or GICs) because you will never recover significant losses because you're life expectancy now plays a significant role

[@rc1983]

Agree😊

[@stevelavery4766]

@@rc1983at 65 you would rather have GICs than enhanced covered call ETFs? No thanks

[@charlesvanderwoude8745]

Only take when you need it. Don’t need it wait.

[@jordapen]

I want the maximum monthly payment.

[@freddyfinance6671]

I want the money now, for longer.

[@garth217]

I want to win the lottery

[@dwaynecunningham2164]

What if you take it as early as possible and invest it because you are still working?

[@garth217]

What if your investments tank and you lose money

[@catharineho8264]

remember that if your spouse contributed less than 9 years, and passes away, cpp will keep it all. You wont even get the death benefit and no spousal benefit. If your spouse dies at 70 and you were waiting to take it at 70 then all of your contributions go back into the pot. Of course if your spouse passes this may be the last thing you are concerned about but if you are on the lower income side it could be financially devastating and a horrible slap in the face to not get the death benefit. Shame on cpp

[@thehigsy]

Agreed, that's why they keep saying take it at a later age, you'll make more, but with a higher chance of death statistically

[@Crewcop]

I don’t understand why you added inflation, shouldn’t you only add inflation to cpp that you have already taken, and years you are comparing too you would YMPE, so to compare 60 vs 61. The person who took at 60 a year later gets the inflation bump, the person starting at 61 gets a YMPE bump?

[@davecarpenter4917]

YMPE (5yr avg) is likely going to outpace inflation (CPI) for a little while. For 2025, the YMPE (5yr avg) appears to be going up by 3.9%. Add that to the 7.2% increase for waiting the year , makes an 11% increase.

[@makeupjunkie4059]

What about if you are on CPP disability?

[@RocketRon7779]

I have heart disease - 65 is good for me - I seriously doubt I'll make it to 75 or 80 max.

[@spike238]

Waiting until age 65 - forfeit $73,800 Start CPP @ age 66 @ $16,260 $73,800 / $16,260 = 4.5 years 4.5 years to break even or age 70 If your health is pristine, perhaps Otherwise, take the early CPP money and run,

[@deborhais]

There is a bit of a problem currently. Danielle smith is about to begin the end of federal cpp. The conservatives are going to break it up and give the money to the provinces to administer. That means a lot more overhead, so we will lose from that. Plus the fact that it will no longer be hands off. Currently the CPP board is independent of politics. The provinces will use that money for a slush fund. So expect lower cpp and depending on how each province handles it, you may get more in bc than in Alberta. Life is going to get fun boys and girls.

[@scottloughnan1358]

No it wasnt i took it at 65 and am enjoying my retirement

[@BrokeDad_Rich]

Your calculations fail to factor in the most major number...missed income. By waiting until 65 you'd be passing on 5 years of payments or a total of $73,800. If someone were wise enough to collect at 60 and simply invest that money, they'd be far ahead.

[@markbeaulieu8004]

How did you get $73,800? 5 years of $9600/year is $48,000. You will never receive the guaranteed investment return that you get from the government here. %36 is hard to make up.

[@rickmorris3580]

If the best you can do is achieve 7% per year investing then you should hold off on CPP (as that's how much it goes up each year if you don't take it), however if you simply invest the CPP from age 60 in an ETF tracking the S&P 500 index you will be INFINATELY further ahead. Furthermore, if you invest these CPP payments within an RRSP you get the significant benefit of tax deferral until you're retired. Don't listen to these KZbinr's who know nothing. The average return on the index since it began in 1957 is 11% but the average return in the last 3 years including dividends is 33.78%. Maybe I should make a video to set the record straight?

[@FREEDOM-bk4rv]

I might die tomorrow. Nobody knows. As soon as I turn 60, show me the money. It's not very complicated.

[@leorobinson5737]

I'm on board, 60 for me, and maybe I will work 2 days a week.

[@FREEDOM-bk4rv]

@@leorobinson5737 That's perfect. You work the hours you want to work. Nothing too stressful and something you like doing which is not hard to find . Good for you, and enjoy your semi retirement.

[@the1andonly]

You make this seem like a pure numbers game, but the real world isn't about a difference of a percentage point or two. It's more about what you do for a living and how long you want to continue, and of course how badly you need the money. You can't really count on having steady employment after 60, so for many of us the CPP will be a life saver.

[@williamlau2405]

I think this is additional information to consider. You're right too if this information is not relevant to you.

[@planeasy]

Oh yes, you’re right, the video only touches on the complexity when deciding when to start government benefits. Many other factors to consider, some financial but also some personal, everyone will need to make their own decision based on their own situation.

[@bb6910a]

you are not considering the $96,000 you forgo to wait till age 70.

[@andytaylor2321]

Waiting just increases your yearly amount so that’s not the best way to look at it

[@bb6910a]

@andytaylor2321 no idea how long each of us has. You may get sick and get none

[@tkrtezzla]

I started at 61, every penny goes to bitcoin, averaging 30% return will not touch until 70

[@Coyotehello]

Yes, but one thing that is not taken into consideration here is. If you die at say 73. If you had planned on taking you CPP at 74 you got 0$ If you had started taking your CPP at 64 you made 139K$ not even considering the annual inflation adjustment to CPP. Or the return on you investment, if you invested your CPP. Thoughts?

[@johnkleingebbinck8416]

You can start CPP from age 60 to 70, not 74.

[@Coyotehello]

@@johnkleingebbinck8416 talk about missing the point.

[@glennhankins6927]

@@johnkleingebbinck8416 He CAN start CPP at 74. He just wouldn't get any increase in payment beyond age 70.

[@markbeaulieu8004]

If you delay until 65, you would break even at 73 so nothing left on the table. If you have a short life span, take it as soon as you can. Remember, once you start it, you only have a short time frame to stop BUT you have to pay back what you took out. If you start CPP at 60 and still work, your CPP will only increase from COLA so your contributions are wasted and you can't opt out. Some people believe that CPP will increase if you continue working and collecting CPP. WRONG!. You are giving money to the government for tax purposes only.

[@Puukko79]

I'm pretty sure the percentage increases as the likelihood you're dead increases. 😂😂😂

[@OptimisticHominid]

Great video! Here's my increases (without inflation) with only 24 years of contributions prior to retirement: 60 n/a 61 8.66% 62 7.61% 63 6.76% 64 6.06% 65 5.47% 66 8.40% 67 7.75% 68 7.19% 69 6.71% 70 6.29% I'm considering starting my CPP at age 62 or 63. My plan (a complex spreadsheet) indicates that I may do better to wait until age 67, but the benefit of doing so is just $2,200 (at today's value) extra inheritance, dying at age 85, between our three kids. Dying just three months earlier would wipe out the potential gain of delaying to age 68.

[@planeasy]

Very nice analysis! Well done! I’m assuming the lower % increases from 60-65 for your situation are coming from the additional zero earning years being added to the calculation as CPP is delayed. This highlights why everyone should have their own customized analysis done as everyone’s situation is different.

[@OptimisticHominid]

@@planeasy Your assumption is correct. Those lower percentages are due solely to zero earning years before earning an income in CAD and starting retirement several years before age 60. The meager gain in the estate value at age 85 is, in part, because a portion of the ‘extra’ CPP will be taxed at a higher rate, and it will also reduce the Federal Age Amount tax credit. For sure, individualized plans are the only way to go.

[@markbeaulieu8004]

I think you have your numbers wrong. If you start your CPP at 60 based on the example in the video, it would be 73 and 1 month before you caught up if you waited until 65. I think you have something wrong in your spreadsheet. Using the example above. $9600/year x 20 years (60-80) is $192000. If you started at 67 you would have $17250 x 13 years (67-80 totals $224, 250. You would be up $32,250. Not sure where you got match at something over 80. The difference in anyone's calculations is a percentage per year no matter the amount. My service Canada gives you an estimate of how much you would get at 65 based on the current data available. Just subtract the percentages per year if you take it early or add the 8.4% per year if you delay past 65. No magic in the calculations.

[@OptimisticHominid]

@@markbeaulieu8004 Things change when you drop your CPP numbers into a comprehensive projection. If you're not having to sell investments and take money from your TFSA, they will be growing and paying out dividends (that you can re-invest for more growth). Also, in our case, if we take CPP later, we will pay a higher rate of tax on that higher CPP amount because it pushes us into a higher tax bracket. We will also lose more of the Federal Age Amount tax credit, again, we'll pay more tax. So, although delaying brings a boost in CPP, there are factors that take away much of that extra boost. I did have a financial advisor run our numbers through his planning software, and he was surprised that our break-even point, when starting CPP at 62 or 63 was around age 84/85. I was only surprised that he was surprised.

[@anttoronto3202]

Started at 60. Don’t care about your stats. Everyone is different. Everyone chooses their own path. I don’t care about a couple of hundred more or a couple of a hundred less.

[@mariaboivin1840]

This is a very interesting thread but it only applies if you are alive❤️

[@TheSerenityV]

Your inclusion of inflation was useful advice on a cash basis however one’s health declines faster than you can spend well invested money in your later years. Take it early enjoy life while you have health.

[@Dan-qt7kq]

It all depends on yiur tax bracket. I’m still working in 40%+ so if I take it now I get it a bit further up me ol ass, frig Trudeau. I’ll take it when I quit working.

[@markbeaulieu8004]

NO, CPP/OAS does not withhold tax, you have to request to take the taxes off. If you don't ask, they will not take any taxes off and you will owe them in April/May. Also, CPP and OAS are taxable income and will be added to your total taxable income SO, if you are already in the %40 tax bracket, any added taxable income will also be taxed at that percentage until you are bumped up to a higher rate. Also, working while taking CPP is not a smart move. Once you lock in your CPP annual rate you are locked into that rate for the rest of your life. The only increase you will get on the CPP/OAS is the COLA increase. Any payroll CPP deductions will NOT increase your CPP benefits. Really, at this point, you are giving the money to the government.

[@Jacquie_Kirk_111]

Widows be careful! My husband died at 40, when I did the math, it made sense for me to take it at 60 because with my husband CPP It hit the max, so no sense waiting.....

[@planeasy]

Hmmm, that’s odd because it’s often best to delay your own CPP if you’re receiving a Survivor Benefit. The integration of personal CPP and CPP Survivor Benefit often leads to a reduction in survivor benefits. I would strongly recommend anyone receiving a CPP Survivor Benefit to consult with a financial planner before deciding to start their own CPP.

[@garth217]

Absolutely. You were smart for doing so. I'm taking mine at 61, because my wife will get very close to the max when I go

[@markbeaulieu8004]

Just remember, there is a max total that you will receive no matter how much the survivor benefit is. Don't think that you will get all of the survivor benefits either. I think the maximum benefit you can get is under $1800/month. If you are already getting $1300/month, you will only be able to receive an extra $500 even if the survivor benefits are more then that. I just found that out recently and was shocked! The government has you by the short and curlies.

[@freddyfinance6671]

Better to take it at 60 even if you don’t need the money. Invest it in your TFSA and invest it in quality stocks assuming a 7% return you will have over 60k by age 65. Take it at 65 and you will have exactly 0 at age 65. Nobody knows how long they will live so take the money when you are still relatively young and healthy.

[@Sola_Scriptura_1.618]

This is the best answer! A bird in hand is better than two in the bush.

[@garth217]

I like you looked at the numbers. I'm starting at 61. $41,000 in 4 years..nothing says you have to spend it. But money is better when you can enjoy it

[@Sola_Scriptura_1.618]

@garth217 Money is better when it is in your hands and not the Governments. You can always gift your money, never the government's.

[@markbeaulieu8004]

You will not make near the interest if you invest in TSFA. Just think, you will make 36% on 9600 in the first year alone, in the second year, I will make 28.8% on $9600, year 3, 21.6%, year 4, 14.4% and from 64-65, I will make 7.2% on $9600 these rates are guaranteed as well. where can you find that anywhere in the markets. Sure you might be pre tax $48,000 up but I will catch you at 73. and if we both live to 85, which is the current Ontario life expectancy, I will be up $81000.

[@freddyfinance6671]

@ assuming $800 per month multiplied by 156 (13 years) comes to $124800 by age 73 without any growth or inflation indexation factored in. With five extra years for growth opportunity, I will ahead. Merry Christmas by the way. I hope we both live long enough to enjoy what’s really important in life, family and friends, Cheers.

[@EdwardJohns-e8k]

So, let's see what is the most beneficial for my situation. I passed 65 in last December, I'm still working due to financial situation, especially ridiculously high rent. I still contribute to CCP. What would be the best timing, apply for my pension a day after my 66th birthday and keep paying into CCP? OR should I wait till 01 January 2025? Should I keep paying into pension or just cut it? Unfortunately I will have to keep working into the unforeseeable future.

[@mckessa17]

Does not matter, not enough money to make a difference.

[@islandmama]

I have the same question as I am in the same situation as you. I am 62 and will probably have to work till I can't work anymore. I'm wondering the same as you. Should I take CPP now and would I be able to still contribute to CPP if I keep working, and is it worth it?.

[@6755986]

What is CPP?

[@planeasy]

Canada Pension Plan

[@R58-n8n]

The best time to collect CPP is 60. Sure I’ll get a reduced rate, but I would collected 5 years before someone starts at 65.

[@barrybigelow4259]

your numbers are wrong

[@GaryBruyere-f9b]

Do you think retiring at 63 is ok?

[@planeasy]

It depends on your situation, what is good for one person is terrible for another. Your best bet is a custom retirement plan.

[@garth217]

I retired at 54

[@GaryBruyere-f9b]

@@garth217 My friend retired at 48

[@wwoodcox]

Great video. There are other reasons to delay CPP and OAS.. When collecting survivor CPP delaying may get you more over your lifetime. Delaying OAS may reduce any claw back as your max will be higher, and your income at 70 may be smaller.

[@planeasy]

I love the point about survivor benefits, many people don’t realize how CPP + CPP Survivor integration works, it can be a big reduction.

[@garth217]

If you're considering what if situations..you could get struck by lightning at age 65 while golfing on your first day of retirement

[@clee6746]

Life expectancy is not part of the picture in your analysis.

[@paulclark7637]

I suspect for most people, the best answer is take the money when you stop paying tax - or at least drop out of a higher bracket. I plan to work until at least 65, because i enjoy it and need the money. As a high rate tax payer, deferring taxable cpp income to get more later with little / no tax makes most sense. I think there's also some logic to withdraw up to taxable threshold from any RRSPs and defer further. Lastly, any capital gains are worth taking in an otherwise tax-free year.

[@mckessa17]

When ever you take it doesnt matter because its peanuts.

[@TT-fq7pl]

It means quite a lot to a great many Canadians.

[@mckessa17]

​@@TT-fq7plYou must be joking. The cost of living in Canada under our Liberal government is disgusting. Keep thinking its alot of money because it doesn't even buy your groceries.

[@TT-fq7pl]

@@mckessa17 Not joking. The CPP is indexed for inflation, so it rises with the rising costs. In any case, some money is better than no money. And besides, all the anti-government types plan to build their own wealth outside of CPP anyway (or so that's what they keep bragging about).

[@MH-lk8md]

It’s nice seeing the math in a vacuum, but there’s another factor that’s left out. In order to take CPP later, you would need to either work longer or dip into your savings, which will reduce your savings returns, if properly invested.

[@vivianbrien7680]

Good thing my brother-in-law took his early as dropped dead at 71 so would have not received a cent although he paid into it all his life.

[@billyrock8305]

Age 70 for OAS and CPP is the sweet spot. ✅

[@planeasy]

Yes! But depends on the situation, for some people starting OAS at 65 is better, especially if GIS is a factor.

[@billyrock8305]

@@planeasy Good point on GIS.

[@pargolf3158]

... but if you shuffle off this mortal coil at 71 you lose.

[@garth217]

Not if you're dead

[@billbalyx8799]

wrong...start at 60, may be dead at 65 but regardless as you age you spend less thats just how it is

[@JefffromCanmore]

These are so dumb. Start at 60. Could be dead at 61 and you can’t take it with you or pass it on.

[@JB-lc2fn]

If you took Trudeaus mandated Tea take it at age60 while you can.Cheers

[@TT-fq7pl]

You know what you can do with your Cheers.

[@AdrianLegge]

So thankful Trudeau reversed Harper's OAS start date from 65 to 67+. Few people remember Harper's parting gift to all aging Canadians.

[@robertsharman3599]

OMG - what a waste of electricity and our time. There is no RIGHT answer for everyone. The “right” answer is what are your circumstances? What are your needs? What are you other assets and the levels of taxes (which includes which province you live in)? What do you have to provide as an inheritance? And so on….. Don’t listen to this, get someone who can help you make sense of your situation. Your needs.

[@Blackbear23929]

The sooner the better 60 for me

[@grandpascabin-p1m]

No you are wrong

[@sarblade]

This is sure one way to look at considering when to take CPP. I think the person considering really needs to know death expectancy. If you believe your life can extend towards 90, and you expect to be in excellent health to say 85 and p[lan to do most of your spending between 70-85, then delaying until 70 is still the wisest move. If you need the money to live on and thinking you will have to continue working until 70, then taking the money at 60 is a better option. If the person doesn't need the income, but thinks they can out perform CPP with an investment strategy then take at 60. I think this "incentive" strategy is nice to know about because, like you said, you're leaving money on the table the year before if you don't take CPP. That's always the case. 65 is the turn around year the government decided, it could easily have been 67. Then 67 becomes the worst incentive year to take CPP. Tomato, tomatoe

[@planeasy]

Yes! As always, these type of retirement planning decisions are different from person to person, never do what your friend or neighbor did, the “right” decision for them could be “wrong” for you.

[@DoneByD]

@@planeasyproblem is you only really know if you made the right decision (and if the measuring stick is the most money out of the plan in your lifetime) when you're dead. And at that point it really doesn't matter. 😮

[@planeasy]

@@DoneByD ah yes, but sometimes the "right" decision isn't the best financial decision but the decision that provides the most happiness or peace of mind. Sometimes with financial planning we choose sub-optimal strategies because there are soft benefits like less risk, less variability, more security, more peace of mind. Even if its not the "best" financially, and you never reach breakeven, as long as you worry less and have a happier retirement then it still might be best.

[@parkerbohnn]

@@DoneByD Unless your money is in Switzerland because not much else is safe even all your gold can get stolen. CDIC forget it Manitoba credit unions will renege and only insure up to a million. The same with brokerage accounts because the limit of a million is so low all you get covered it a million per account. Hopefully treasury bills bought from the source will be safe.

[@bbeamish08]

inflation at 2.1% = laughable....what a joke

[@wiltthestilt2468]

Nonsense

[@jeffreyadams8264]

Grade 3 math will show that taking CPP at 60 yrs. Makes the most sense.

[@parkerbohnn]

If you can earn more than 7.2 percent a year from age 60 to 65 and earn more than 8.4 percent from age 65 onward. In reality very, very few do but they have high hopes beforehand and with the U.S. stock market at nosebleed levels even worse than 1929 all I can say is good luck you'll need it.

[@kevinlaliberte6199]

Big deal still starve at what the pathetic amount is

[@jimlockwood7270]

82 years old is the catch up age if you delay. Who needs that money then when could enjoy the 100000.00 dollars between 60 and 70 years old

[@markbeaulieu8004]

Wrong! 73 based on the example above. At 73, the person taking $9600/year would have made $124,800. The person who delayed until 65 and taking home $15,000 per year will have received $124,000. After 73, you are sucking the dust from the person who waited.

[@jimlockwood7270]

@ sorry but you have not factored in all scenarios for example I know many people I worked with over the years who died in their 60 and 70 years of age and numerous more who are not healthy enough to enjoy the money is meaningless to them so before you stamp my comments WRONG think a little harder

[@markbeaulieu8004]

You were wrong on the math is what I was getting at! People die when people die! I know lots of people who live in their 80s but I also know lots of people who die in their 60s. Everybody’s choice is their own. I just questioned your math.

[@Tgreenhornt1]

You obviously don't understand mathematics nor typical householders that decide on when they can "afford" to retire.... It depends on the individual's portfolio, not to mention their possible future needs.... You need to study a little harder... it's not that cut and dry....sheesh!!