The Truth About CPP - When should you begin your CPP

The Truth About CPP - When should you begin your CPP

If your like many people planning for retirement, you have questions around when to start receiving your Canada Pension Plan. You've likely watched videos recommending taking CPP at age 60, 65 or 70. So what age is best...it's so confusing.

In this video I share my own personal belief around when to start CPP. These beliefs have been developed over 25 years in helping Canadians plan for retirement.

There are only 2 considerations in determining when you should begin receiving your CPP:
1. The Math - Your likely trying to find the optimal age to begin CPP given that you may have a private pension, rental income, RRSP's to meltdown and avoiding the possibility of an OAS Clawback.
2. Longevity - Some people are blessed with long lives and hopefully healthy long lives. The truth is this area of your life is largely out of your control.

It's because of this fact, for my plan, optimization of CPP is less of a priority and starting the income from CPP earlier (65 -67) to enjoy while I'm younger and healthy is THE priority.

𝗪𝗵𝘆 𝗬𝗼𝘂 𝗦𝗵𝗼𝘂𝗹𝗱 𝗪𝗮𝘁𝗰𝗵:
This video is not just for economists or financial experts; it’s for anyone concerned about their financial well-being in the coming years. If you're looking for ways to safeguard your investments, plan for retirement, or understand the economic indicators that could impact your future, this video is your go-to resource.

By the end of this discussion, you’ll have a clearer understanding of the driving forces behind rising interest rates, market volatility, CPP / OAS, Retirement planning and the tools you'll need for protecting your assets and ensuring a secure financial future.

Don't leave your financial future to chance. Equip yourself with the knowledge you need and consider getting professional advice to navigate these uncertain times. Subscribe for more insights and actionable tips.

Disclaimer: This video is for informational purposes only and should not be considered as financial advice.

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#cpp #retirementplanning

[mikevandoorn]

This is the first video I've seen on this where the advisor "gets it"!! All studies show that spending is up in the early years of retirement and then drops off in the early to mid seventies. So you are going to have more money when you need it least. When to take CPP is not a math question (though it can be), it is a philosophical one.

[rickbold]

That was the best explanation I’ve ever heard about Cpp. I’ve been to too many funerals lately for people in their 60’s. And yes, you could live longer and earn more but you’re not going to need it later in life.

[colinmagee]

One big point you make that most seem to have missed is, while not waiting to 70, taking CPP at 65-67 is still deferring since the average age is 62. Totally in line with this approach/thinking about this.

Because both wife and I will be at the higher end of CPP, when one dies, their OAS is gone and close to no survivors CPP. Found a happy median between financial and psychological considerations, taking too early vs deferring too long and best case scenario vs what if scenario, retiring at 60 and delaying CPP to 65

[murraytown]

One of the more compelling pieces on CPP earlier rather than later. I’ve a DB plan to boot.

[kevinmcgregor]

Yes, great video. If your calculation is based on statistics the average 60 year old Canadian will live to 84 therefore the best age to take cpp would be 66 - 67 years of age, but everyones wants and needs are different so do whats right for you, and be happy.

[edmiddleton]

Great Discussion. Here's what I found. I ran many projections of my plan. Taking CPP at 60, 65 and 70. Also adjusted our plan from 75 to 100 years of age. Looked at me passing away first and then my wife and vice-versa. Looked at different ages of death for first of us and also for second of us. After all this, there was no one correct age to take CPP that satisfied all the options. The CPP age depended on the situation. All to say, in our case anyways, we've decided on 65 to 67, all depending on if we are still working or need to withdraw RRSP's in our 60's, wanting more funds in our go-go and slow-go years, etc.. After doing all this I realized just pick some age that seems reasonable and live with it. You'll never know if it was correct anyways until after you've passed away.

[scottloughnan]

i started mine at 65 and i couldnt be happier

[robertroy]

Great video I was thinking the same 65 or 67 😊

[terryloubelle]

Agree….taking it at 65 as I’ve saved enough

[benboots]

Couple of opposing thoughts. He said he has 6, 000 clients and 5 or so death cases per month, or 60 per year. So ONLY 1% of his clients died per year.
Total life expectancy includes deaths at birth, and all causes. If you are alive at age 60 your life expectancy is now way over the national average.
And you might want some extra money in later years to pay for individualized care or changes to your home so that you can continue to live comfortably.
CPP is the closest thing to a defined benefit plan that most people will ever be able to get; doing some planning to maximize CPP is always something to consider.

[wrongwayconway]

I took CPP at 62 and continue to work full time investing CPP into my TFSA high interest return) will retire at 63 this year with a defined benefit pension. I might delay OAS once I analyze the tax implications as I get nearer to 65.

[leslieleepack]

FOMO is a great motivator, the tiny death benefit also adds to this argument. Longevity actually increases once you pass 60 for both genders.
If one is fortunate enough to have the resources to delay CPP until later, then the 42% increase along with the annual COLA is a great inflation compensator for one's future earnings. Most plans will decrease the investment risk for their RIFF/RRSP, investment plans as you get closer or are into retirement, making it difficult to keep up with rising prices. Inflation is the greatest enemy to someone on fixed income{s}, it is slow and insidious. I only know that having more $ is better than the alternative. I have never had more money than I needed, that would be a interesting experience.
This could all be made mute by either dying earlier than expected, the separation of Western Canada becoming a reality or a third Trump administration.
Like some have said on here, its an individual decision, you can only base it on the information you have today.
The best advice is to have a PLAN, run the scenarios and keep CRA at a minimum.

[contourman]

Waiting till 70 seems crazy to me. if I took CPP at 60 I would only get 750 which didn't excite me. I just turned 62 and would get 966 if I started today. I will take in another year or 2 when payment is approximately 1, 100 - 1, 200 per month.

[whales]

Actually I'm thinking 60 would be better, the difference at age 75, even 80 is not worth it for myself. With my back shot at 59 I just can't see my quality of life improving as I get older. I got the forms in my hands right now to apply on my birthday...

[snuviddz]

My worry is the quality of where I'll be able to afford to live if I reach an age that I need to move in to a retirement living or even more supportive place.

[tertur]

Why would you want to live on your own savings when you are eligible to use the governments money? You paid into it, take it. The charts and graphs may say that the math says to wait to 70, but common sense says don’t leave anything on the table.

[EARLandPEARL-ci]

As soon as you can...you might croak prematurely