What Happens To Your CPP If You Retire At 55?

In this video, we’ll look into how retiring at 55 affects your CPP benefit and then we'll dive into some different scenarios to help you decide when to start collecting if you're in a similar situation.

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

The content on this channel is for educational purposes only and does not provide specific investment or planning recommendations. Viewers should consult a qualified professional for retirement, tax, or estate planning guidance. Parallel Wealth and Adam Bornn are not responsible for any decisions made based on this content.

TIMESTAMPS:
0:00 - Intro
0:29 - How retiring early impacts CPP
4:30 - CPP calculator - Retiring at 65
6:27 - CPP calculator - Retiring at 55
7:57 - Software - CPP at 60
10:07 - Software - CPP at 65
11:54 - Software - CPP at 70
12:52 - Software - Comparing scenarios
14:50 - Software - CPP at 60 vs 70 with proper planning

[HannaVo-dhfe]

Wow I tried CPP calculator and it really helped confirmed that my husband and I should defer till 70! We both retired at 56. I started my DB pension right away while he wants to start his at 65. We’re trying to melt down our RRIF as tax efficiently as possible by 70 to avoid OAS clawback. Thank you for this very informative video!

[greatchalla]

Yea….retired at 55 in 2012 and took CPP at 63 after making contributions for 35 years at the Max rate ……pay out is $780/ month. The reality is half the guy’s I started working with are now dead, the rest are dead beats and do nothing. They might as well be dead……so get out early and get busy building a life worth living! Moneys no good if you’re pushing up daisies.

[kevinthailand]

Retired at 53. TOOK CPP at 60. I had alot of dropout years already as a self employed person so no point in waiting it out. Living my dream life. Get Busy Living.

[vm]

I'm retiring at 52 and will only get 65% of max because of non-contributory years. However, by waiting to 70, I will get an increase of ~2% yr (usual CPI), and then get 42% more by deferring from 65 to 70. So yeah, I'll be fine. Like another commenter, I'd rather have a bit less in CPP than work more years and be miserable.

[sharky]

Another great video Adam. I just retired last year and after watching many of Adams videos, I agree that everyones situation is different. My parents both lived to age 88 so longevity and good health runs in my family 🙏.
My wife has a great pension so I dont need mine right now 🙏
We are drawing down our RRSPs into RIFs & TFSAs 🙏
We'll then take our CPP/OAS at 70 🙏
Enjoy life, stay busy, travel and share it with family. Thanks Adam.

[Backtoreality]

This is the one I’ve been waiting for. Thankyou 🙏

[oxmjfxp]

These are the videos that I love, especially since I had done the same analysis myself for when I retired at age 48 and reached the same conclusion for that age as well. This allows me to draw down my RRSP more aggressively while I have zero or little other income, so much more tax efficiently, while waiting to collect CPP at 70.

[Deitricklaverne]

If you retire at 55, you won’t be able to start collecting CPP right away. The earliest you can start receiving CPP is at age 60, and if you take it then, your payments will be reduced. The reduction is about 0.6% for each month before your 65th birthday, so at 60, you’d get 36% less than if you waited until 65.

[macdaddymgiarc]

Hi Adam - I am single and 54 and retiring this year. The timing and content of this video could not be more timely and valuable! Thank you for sharing your thoughts, Craig from Hamilton

[ramspace]

I enjoy reading all the comments. To many people, it's not about money as such, it is about how they feel about life and about themselves. As we say, some are driven by the mind, others by their heart.

[petert]

Very good video. Working through a hypothetical that a fair number of people will have questions about since it is really not clear because there are both positive and negative pressures on the income amount.

[karagi]

Retired at 53. Took CPP at 60. The main reason I took it early was to have less CPP income because I wanted to start taking money out of my RRSP without paying a ton of tax.

[NK]

I've been searching for this info! Thanks for the video.

[harveyellis]

Good video. The online tools have improved significantly in past couple of years. I did my calculations on spreadsheets. I retired at 56 and will defer CPP & OAS until 70. Better to enjoy stress free healthy years than worrying about the CPP non contribution years.

[cparrd]

I’m planning to retire at 56 and collect CPP at 60. Time isn’t guaranteed. My dad worked until he got cancer and died at 64, only collecting a couple of months. Since he was single, no one is collecting survivor benefits

[rdefacendis]

A bird in hand is worth two in the bush. You hear that often when debating when to take CPP. I would offer one important additional consideration.... don't make projections about how long you will live when calculating the best time to start collecting your federal benefits.. Alternatively, estimate the number of HEALTHY years you have ahead. Very little discretionary income is needed if you are housebound with a disability at for example, 75 - all you are doing is watching Netflix and ordering the occasional pizza.. .you won't be travelling, eating in restaurants, and you won't need a car anymore. Yes, you may have some additional expenses with a disability but, here in Canada, much of our health care in old age is socialized.

[spasecookee]

One thing I found out by doing this myself is that because I am receiving CPP survivor's benefit, it doesn't matter if I retire at 50 or at 65. The amount of CPP i receive will be the same because of the way that the CPP retirement benefit and survivor benefit is combined. This is separate of when CPP starts (60/65/70), of course.

[douggibson]

Great information video, Adam. 44K/year less $300-500 a month for health insurance for 10 years till government coverage kicks in.

[James-ztuz]

Retired at 54, drawing down Cash savings and LIF, taking CPP at 60. Life is for living, could get hit by a bus right after I post this 😱

[blackwatch]

I’ve been waiting for this video.
I went to university and college from 18-24 and will be retiring at 55. My drop out years are already taken in the first part of my life. I don’t want a 15 year penalty at 70. I have DB pension and can take my bridge with my CPP at 60. I plan on traveling extensively between 55-70 and living in a lower tax country.
I have run the numbers by hand and my break even point is 78. If you take out more investments to cover no CPP those investments would still be there if you took CPP.
I know the numbers don’t lie but I wish Adam would talk about the GO GO years in these CPP videos.
I will hire Adam’s company to run the numbers in a year or two when I’m close to retirement. His software might make more sense when my numbers are put in.