When Should You Take CPP?

The Three CPP Start Ages

Age 60: Receive CPP 5 years early but permanently reduced by 36% (0.6%/month). Age 65: Standard start — 100% of your earned benefit per Service Canada CPP rules.

Age 70: Defer for 5 years, receive 42% more permanently. The question is never 'how much CPP will I get' — it's 'what's the best total lifetime CPP income given my health, longevity, and other income sources?' Use our CPP Calculator to model every scenario.

The Break-Even Analysis

60 vs 65: If you live past approximately age 74, you'll receive more lifetime CPP by waiting until 65 vs taking it at 60. 65 vs 70: If you live past approximately age 83, you'll receive more by waiting until 70 vs taking it at 65.

Average Canadian life expectancy at 65 is 20+ more years (to age 85+), making deferral advantageous for most people in good health. See CPP at 60 vs 65 vs 70 for detailed break-even tables by age and health scenario.

When to Take CPP Early (60–64)

Early CPP makes sense if: you have poor health and uncertain longevity, you need the income immediately and have no other savings to bridge, your spouse has a significantly higher CPP that you'll defer (maximizing survivor benefit), or you want to stop employment early and use CPP to avoid drawing down RRSP or TFSA savings. It may also make sense if you're planning to retire abroad and need immediate income before setting up foreign residency.

When to Defer CPP to 70

Deferring to 70 makes sense if: you're in good health with family longevity, you have savings, part-time work, or a spouse's income to bridge (see RRSP meltdown strategy), you want maximum inflation-protected guaranteed income, or your RRSP withdrawals in early retirement mean CPP will face high marginal rates anyway. Paired with deferring OAS to 70, this strategy can add $15,000+/year in permanent income vs. taking both at 65.

The Income Bridge Strategy

Some households use RRSP or TFSA withdrawals before starting CPP/OAS. Deferral increases later monthly payments but gives up earlier payments; tax, investment returns and longevity change the outcome. Lower later RRIF balances may reduce OAS recovery, while higher later CPP may increase it.

For 2026 income use $95,323; July 2026–June 2027 withholding instead uses 2025 income and $93,454. Neither a particular lifetime saving nor an optimal age is guaranteed.

CPP Timing for Couples

Couples should coordinate CPP timing strategically. If one spouse has significantly higher CPP (often the higher earner), they should defer to 70. The lower-CPP spouse may start earlier to provide bridge income.

This maximizes the survivor benefit — the surviving spouse collects the higher CPP. If you're retiring with $500K–$750K as a couple, coordinated CPP timing can be worth more than any other single financial decision.