CPP at 60 vs 65 vs 70: Which Is Better?

CPP Benefits at Each Age

At 65: You receive 100% of your earned CPP benefit (maximum $1,364.60/month in 2024 per Service Canada). At 60: You receive 64% — a 0.6% reduction per month taken before 65, for a maximum 36% permanent reduction. At 70: You receive 142% — a 0.7% increase per month deferred after 65, for a maximum 42% permanent increase.

These differences compound significantly over a 20–30 year retirement. Use our CPP Calculator to model your exact amounts at each age.

The Break-Even Analysis

Age 60 vs 65: If you take CPP at 60 instead of 65, you receive 5 extra years of lower payments. The break-even age is typically around 73–75. If you live past 74, taking CPP at 65 pays more total lifetime income. Age 65 vs 70: Deferring from 65 to 70 costs 5 years of payments but earns 42% more forever.

The break-even is approximately 82–83. Average Canadian life expectancy at 65 is 20+ more years — meaning most healthy Canadians benefit from deferral. See our detailed break-even tables.

When Taking CPP Early Makes Sense

Taking CPP early (60–64) makes sense if: you have poor health and don't expect to live past 75, you have immediate income needs and no other savings to draw from, or you have a partner with a significantly higher CPP who will maximize their benefit by deferring. It can also make sense if you're retiring abroad and need immediate income to fund your move before RRSP drawdowns begin.

When Deferring CPP Makes Sense

Deferring CPP to 70 makes sense if: you're in good health with family longevity, you have savings or part-time income to bridge the gap (see RRSP meltdown strategy), you want maximum inflation-protected guaranteed income for life, or your RRSP withdrawals in early retirement years will be tax-inefficient anyway. Deferral is especially powerful if you're also deferring OAS to 70 — two simultaneous 36–42% permanent increases significantly strengthen late-retirement income.

The Income Bridge Strategy

Many Canadians use RRSP or TFSA withdrawals to bridge income from retirement to age 70, avoiding CPP entirely during that period. This keeps early-retirement taxable income lower while CPP compounds.

At $500K–$1M in savings, a 5-year RRSP bridge can mean an extra $5,000–$7,000/year in CPP income for the remainder of your life. See our full retirement withdrawal order guide for the mechanics.

CPP Timing and the OAS Clawback

Starting CPP early increases your taxable income immediately — which can affect OAS clawback planning (the recovery tax begins at $90,997 net income in 2024). Deferring CPP to 70 while drawing RRSP can keep income in optimal tax brackets. If you expect significant RRIF income in your 70s, consider whether early CPP income pushes you into clawback territory.