What Happens To CPP If You Retire Early? (When To Take It)

The CPP calculation can get confusing, especially if you retire early. There are a lot of factors that go into what payment you actually receive, so hopefully this video will clear some of the air. We'll also go through what age is the best to take your CPP if you retire early...it's not necessarily early on in your 60s!

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TIMESTAMPS
0:00 - Introduction
0:53 - Statement Of Contributions
2:11 - Child Rearing Provision
2:50 - Hard To Find
3:02 - What Should You Do?
4:24 - Online Calculator
4:50 - Find Your Number
7:40 - CPP Statistics
8:20 - Look At Software
10:13 - CPP at 60
10:50 - CPP at 65
11:48 - CPP at 70

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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.

[jaxwylde]

Adam..THANK YOU. I'm one of those folks that this applies to. I retired at 53 and know that CPP data provided by CRA will not reflect my actual amount when I start receiving at 60, 65 or later (due to the additional non-contributing years). I've used a few online calculators, and have even calculated using manual method (there are several guides that explain the process). I got different results (using same assumptions) from each attempt. They were relatively close (within $50/month), but still found it frustrating that the numbers didn't match up (or had a much smaller delta). I am looking forward to your firms calculator and would even pay a fee for its use. If it's free to use, even better, and with that you'll almost certainly gain a customer when it comes time (soon) to complete a comprehensive financial retirement plan. Cheers.

[gruff]

Outstanding video! Stopped work at 56 and used DRpensions to get some numbers. Highly recommend Doug's service. I'm taking CPP at 60. If I wanted more money I would have stayed working. I will use the CPP to bolster my go go years. Thanks for all you do to help educate people. Having the numbers leads to informed decisions and there is no one size fits all. I can do more with less money now then I can with more money later when the knees and back are done.

[geraldjohnston]

Best video yet, keep up the great work Adam, I tune in specifically for this type of scenario, since that models where I am at, and what Im thinking.

[Maritime]

This is great information. I retired at 53 and am living off my RRSP's, NRSP and TFSA. I have some time yet before I have to decide but based on this and other videos you've posted I'm planning on deferring CPP until 70. Nice to have a calculator available to validate if this is the right decision.

[gernblanston]

Yeah I can add another wrench.
Im a retired Military guy. I just applied for CPP from Thailand where Im living. Im now 60 and as an expat outside Canada you can't do the application like a normal Canadian. I had to apply by post !!! Yep, anyone outside Canada must apply by fricking post. Forms downloaded from site then printed off, then manually filled out and sent to Canada. There's progress for ya in this high tech world. Har har

[benny]

What about all the years after 60 you did not collect and when would you break even. For instance say you were entitled to $1000 per month or $12, 000 per year to age 65. That would mean you lost out $60, 000 in payments over those five year (12, 000 X 5). How long will it take to make up this into the future. Also, we always forget about the quality of life. Having monies available earlier in your retirement life will allow you to do things which you may not be able to do as you get older. I think you have to look at this holistically rather than just crunch some numbers on a spreadsheet.

[oliummm]

Start planning early, and revisit the plans every 3 years. Call the source. CPP will give you an estimate that considers personal scenarios. Good video.

[micheller]

This is definitely something that has been on my mind. Thanks for this video. I retired at 54 and wonder how much my CPP will be affected.

[planetfoulkes]

Very good information. You’re so correct in saying it is difficult to find your CPP. We’ve been overseas for 18 years and I’ve been trying to figure out our CPP and it’s been impossible.

[teresa]

My cpp number goes down slightly each year but the increase each year for inflation far exceeds what it goes down.
And once I hit 65 then the amount will go up over 8% each year up until age 70 when I will start to collect.
Everyone should get set up an account with Service Canada and watch the number to see where they are at and to see that the decrease due to not paying into cpp for x amount of years compared to what it increases due to inflation.
My CPP has gone up a great deal every year since I turned 57 and quit working.

[leok]

Thank you! I am considering retiring 5 years before collecting CCP, so this is very helpful.

[wayneandrews]

Brett and Adam, THANKS, this is the exact question I've been struggling with as I'm about to retire at 60. Can't wait to see the calculator!

[murraytown]

Very helpful (as always) and yes, a key consideration for me also. I retired at 56 but grateful to have an indexed DB bridge to 65. My RRSP should carry me to 70. Looking forward to crunching the numbers regardless.

[vm]

The increases from waiting until 70 make up for the non contributory years when retiring early. Run the numbers. The calculator on CRA can give you a great idea of what to expect as you can put in your income numbers. Also, take into account indexing for inflation (I safely use 1%/yr increase, although probably a bit more). When I retire in 2027, by the time I take CPP in 2044, with all the increases of inflation and taking it later, it still ends up being a great deal of money/yr for me.

[martinb]

Great Video Adam. One I have been waiting for. I retired at 53. Will probably take CPP at 70. Thanks for sharing.

[carllemieux]

Thanks, retired from Canadian Armed Forces, took my retirement income but still working for Canadian government, this info should be given to all workers so they can "understand" what info is not provided... verrrry apreciated..!!!

[heatherbolichowski]

Great info. I will have to listen again! Can’t wait for the program you’re building. Hopefully you will be able to make it available to your YouTube audience and not only your clients!

[kasmca]

great video as usual. I played around with the spreadsheet and noticed estimated life expectancy had a big impact on optimal age to start CPP. No one knows when they will die, so I'm not sure if it really makes too much difference when you take it. Probably best to evaluate your health at age 60 to project your death date and go from there.

[micheldevost]

Welcome Brett to the community. Looking forward to hearing your wisdom. Cheers!

[xbman]

Learn money language and have basic understanding on tax laws.
I was semi retired at 49 and full retirement at 53.
Life is good. Gonna get get better. Cheers!