Should Canadians Delay CPP? Pros & Cons

CPP Timing Considerations: Pros & Cons

This article is for educational purposes only and is not financial advice.

General information about the factors Canadians commonly consider when deciding when to start Canada Pension Plan benefits.

9 min read

Last Updated: January 2026

Understanding CPP Timing

You can start receiving CPP as early as age 60 or as late as age 70. The standard age is 65, but your benefit amount changes significantly based on when you start:

Starting at 60: Reduced by 36% (0.6% per month early)
Starting at 65: Standard benefit amount
Starting at 70: Increased by 42% (0.7% per month delayed)

This means a $1,000/month benefit at 65 would be $640/month at 60, or $1,420/month at 70.

The Case for Delaying

Higher Lifetime Payments

If you live past your early 80s (the "break-even" point), delaying typically results in higher total lifetime benefits. For many Canadians, this can mean tens of thousands of dollars more.

Inflation Protection

CPP is indexed to inflation. A larger base benefit means larger cost-of-living increases in dollar terms throughout retirement.

Longevity Insurance

Delaying provides protection against outliving your savings. The guaranteed, inflation-adjusted income becomes more valuable the longer you live.

💡 Note: Women, who statistically live longer than men, often benefit more from delaying CPP due to increased likelihood of reaching the break-even point.

The Case for Taking Early

Health Concerns

If you have health issues that may shorten your life expectancy, taking CPP early often makes sense. You'll receive more total benefits over your lifetime.

Immediate Financial Need

If you need the income now—perhaps you've stopped working or have limited savings—waiting isn't practical.

Investment Opportunity

Some argue that taking CPP early and investing it could yield higher returns. However, this depends on achieving consistent investment returns and doesn't account for the psychological value of guaranteed income.

Factors to Consider

Your health and family longevity history
Other sources of retirement income
Current financial needs
Tax implications (CPP is taxable income)
Spousal/survivor benefit considerations
Whether you're still working

⚠️ Important: There's no one-size-fits-all answer. Your optimal strategy depends on your unique circumstances.

The Bottom Line

For healthy Canadians with adequate savings to bridge the gap, delaying CPP often makes mathematical sense. However, personal circumstances vary widely. Consider consulting a financial planner to model different scenarios for your specific situation.

Maple Wealth