Top 8 Reasons to Take CPP at Age 60 | Canadian Retirement Benefits

Most of the time I do not recommend taking Canada Pension Plan early. But there are some cases where it makes sense. And sometimes a lot of cents. So if you’re wondering when to take CPP, you’re in the right place.

Links:

------
Intro (0:00)
Consequences of Taking CPP Early (0:35)
#1. Need the Money (2:02)
#2. Shortened Life Expectancy (2:32)
#3. GIS Eligibility (3:12)
#4. Invest the CPP Benefit (4:13)
#5. Avoid OAS Clawback (5:28)
#6. Market Turmoil (6:15)
#7. 8+ Years of Past Low Income (7:57)
#8. Do Not Trust the Government (9:12)
Planning It Out First (10:26)
------

DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.

[chrisconnors]

Damn, this is good info. I’m 62, and doing independent contracts for companies, and I’d really like to stop doing most of them (I have a couple of favourite recurring contracts that I’d like to do until death or senility). I’m going to start binge-watching your videos.

[heleneboisvert-gravelle]

I took it at 60. We never know how long we will live. I have no regrets.

[mandys.]

I took mine at 60. Dumped the job I hated and took one I love that pays less. I work with animals, love every minute..
It keeps me fit and healthy and so happy. That little bit of pension made every thing better.

[sfbxdnh]

One of the most important point missing is to have more money to enjoy like while you are young (ie at 60). Who cares if I will have more money at 80’ because at that time most likely I will be spending my days sitting and looking out my windows!

[thomaselliott]

62 was my number. Starting 3rd year of retirement. OAS and GIS next January. I live way below my means. Always have. I enjoy MY time over flashy gadgets. Get up when I want. Slow burn morning. Life is grand. GO 4 IT!!

[terrydelve]

Im taking it at 60 next year and moving to a country that it will go alot farther .

[rickharks]

both the wife and l took our CPP at 60, BUT have not spent any of it, it goes directly into our TFSA accounts. And we have built a nice nest egg to be used when we need it Since we are both still working, Till we retire, then we'll draw alittle out of it if we need it. The key is not to spend it till after 65

[BrokeDad_Rich]

Using your example of $650/mth, someone collecting at 60 would have received $78k before the person retiring at 70 has collected a penny. At 70, that retiree would start receiving $1000/mth while the 60 retiree continues to received their $650/mth, which is a difference of $350 per month. So in essence it would take the 70 retiree approx 18years at $350/mth to make up the $78k difference (break even) for waiting the 10 years. I'll be taking mine immediately

[starship]

I retired from my job of 36 years of service at 56 years of age and collected my full pension from them. Then back to work as a subcontractor for a company, and paying into CPP, I am now 69 and still working, my wife found out that after 65, I can opt out of paying into CPP because the amount is capped at the highest rate. So make sure you get a formal government application to cancel paying into CPP, they will not tell you. So now my paycheck is larger after giving the employer a copy letter. Also, you can't get back money for overpayment. I lost 8 thousand dollars for not knowing.

[tedebayer]

My sister waited until her 65th birthday, and retired the same day as well. She worked out daily, ate and lived healthy, and looked set for a long and deserved retirement. Four months after retirement was diagnosed with cancer which had spread throughout her body, and less than two months later was gone. Take you CPP at 60.

[wrongwayconway]

I took it at 62 and I plan on working until I am 63 (so still contributing to my CPP for 1 more year). I'll be receiving a defined pension too. No regrets.

[ronbonora]

I took it early and many of the accountants where I worked did too. We all retired at 60!

[barbhaines]

I'm 63 & besides severe mobility issues, I'm pretty healthy. I have longevity in my family. I'm really hoping I can wait until i'm 70 before I start taking my CPP. I'm still working & I hope to keep working as long as my feet allow me to. I hope I'm doing the right thing.

[davimars]

I took cpp at 60 because my teacher pension is blended with cpp. My pension drops at 65 by a portion of my age 65 cpp estimate. I decided to "double dip" cpp and pension for 5 years. The break even point for me is about age 73 where my age 65 cpp would exceed the total cpp I received from age 60. I decided I would rather have the cash now when I am better able to enjoy it.

[michaelwolejszo]

The government has set it at 65 for a very good reason. I know of a dozen people who seemed healthy that didn't live to 66. I'm taking it at 60 and working a job I enjoy part time.

[mimi]

as an immigrant in canada at the age of 46 and started working at the age of 47, retiring at the age of 60 will just give me the very minimal monthly cpp of around $200 only. Am still working at age 62 and no medical/health issues (thank God) with an annual salary of $65k. I believe it is worth the wait to get cpp at 65. If i was born here and worked for so long already.. it would be a different story and i would have been retired at 55.

[harpersisland]

I took my CPP at 60 in 2014 having contributed only $31, 000 75% of that time self incorporated contractor yes I paid $26, 000 in employer contributions as well. By taking dividends and a small salary for the last years I worked. As well as paying my wife as office manager for 15 years I have in 2022 already broken even on payouts vs contributions. I will need to survive until 83 before the early vs late balance shifts, a time when I won’t likely use as much cash. The bulk of my retirement income comes from a well managed RRSP that gives me a comfortable income withdrawing the annual minimum so no quarterly withholding tax.

Everyone should sit down with a spreadsheet and run the numbers long before turning 60.

[mpatm]

I took it early, retired early and don’t regret it. Higher taxes with higher CPP and if you have a spouse and one outlives the other, the remaining spouse will only receive a portion of their CPP, up to the current maximum. Retire debt free and in good health!

[MinnieOnCam]

You should do a video for ODSP (Ontario Disability Support Program) and CPP-Disability. The life as a disabled Canadian is a hard one.

[OptimisticHominid]

I've just discovered your channel - I like the presentation format; not too shouty, not too dull, but just right!