CPP at 60 vs. 65 vs. 70: The Biggest Mistake Most Retirees Make

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TIMESTAMPS
0:00 - Intro
1:09 - CPP at 60
2:44 - CPP at 65
3:28 - CPP at 70
4:17 Harvest ETFs
6:07 - Total Nominal Dollar Difference
8:38 - Additional Tax Planning

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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.

[simpleshoes]

My mom delayed her CPP to 70. She is now 93. I took my CPP last year when I turned 65. All max contributions each. My mother gets more CPP than I do, but lives in a nursing home where she has no use for the extra money now. I think 65 is the right time.

[jasamtp]

Hi Adam. liked your videos. Most ofthem are for people with big savings in tfsa, rrsp, 500k etc..etc
I'd like to see one for peole with little or not savings at all for people which rrsp will impact GIS etc...thanks

[ploverlittle]

having money while you can still do things is very different than sitting at a home and cannot do much
that part is very emotional too

[Peterdob]

If my brother would of taken his CPP at age 60, he would have gotten approx $700.00 per month, $8400.00 per year. So when he reached the age of 70 he would have collected $84000.00 over the 10 years. He decided to wait until he was 70 to take CPP, unfortunately he died 2 months before his 70 birthday, so he collected NO CPP at all. So when experts say wait until you are 70 to collected, that is ok if you live into your 90"s. I started taking my CPP at 63 and happy I did. I paid into it for 40 years and hopefully I can collect for many years to come.

[ryanvanderheyden]

Great video
I still think no matter what happens 62 is the best time to take cpp.
Why wait so long for it. Take it as soon as possible.
Waiting until 70 is to late

[amgengroup]

What are the best etfs for retirement ?

[colingoldthorpe]

I see way too many people retiring way too late, and then something happens to their health and all their plans go sideways. I plan on enjoying my 60’s travelling with my wife. I don’t want to wait until I’m too old to climb up stairs and walk to see some of the great places on earth….

[DoneByD]

Thanks Adam for this perspective, another interesting video...

In this case I do take a little different perspective as this video doesn't solely look at CPP 60, 65 & 70 timing effect, in my opinion, as other financial assets were also adjusted significantly from scenario to scenario. So my conclusion in this case is savings or increases in annual retirement income is more a result of the better planning around Mr. YouTube's financial assets (400K RRSP, . 95K TFSA and 300K LIRA) than when he started drawing his CPP.

I know and understand if you live to life expectancy based off current age 65 tables you are better off delaying CPP to age 70. My measuring stick is will delaying significantly change my life style throughout retirement on a month to month basis. I used to be a take at 60 kind of guy but over the past few years I've changed to waiting till age 65ish (mostly because of penalty and we have the financial assets to be able to fund those 5 years). CPP lifetime amount I'm giving up by taking at age 65 vs 70 if I live to age 84 is only $13, 443 (based on 2024 dollars) or about $708/year gross. This amount of money will not change my lifestyle for the better or worst to warrant delaying about $76, 000 (based on 2024 dollars) of benefit payments between age 65 and 70.

[TwinsDragon]

From a numbers point of view this makes sense however life expectancy in Canada is 83, not 90. I think 65 is a good age to start. None of us have a crystal ball so who knows what age we make it too. My dad paid in all his life and never collected, died at 62 however my mother started collecting at age 60 and is now 83 and going strong! Better to collect and enjoy, practical isn't always the answer! Luv the channel!

[bobjones]

Just wondering what was new on your channel and tuned in to this one that just dropped. You have convinced me to hold off to age 70. It's going to make a big difference. Greatly appreciate all you do. Amazing channel for young and old.

[garth]

Good video, but once again I'll ask if you could do a similar video on someone with a defined benefit pension with a bridge to 65. If I meltdown my rrsp from 60 to 90 I'll lower my taxes overall than if I burnt them down until 70 and not taken CPP until then.

[jordonhope]

Adam, you need to consider what happens if a client takes CPP at 60 and invests the entire amount into an "extra nest egg", in their RRSP until they are 70. Then you have to add the income from the "extra nest egg" to their CPP income stream... compare the total of those 2 incomes to CPP-at-70. In other words, you need to consider the opportunity cost of 10 years foregone income... with a proper DCF model. That's the only way to compare apples to apples.

[barbhaines]

I"m 64 & plan on working until I'm 70. I'm delaying my CPP until 70 because I come from longevity & with the cost of living the way it is today, I will need that extra income. It's a gamble no matter what you decide to do. Plus, I want to travel as long as I can. I exercise & try to keep myself healthy so maybe it will all pay off.

[Supe]

As always, great info! Obviously, gauging the comments on this video, there is a LOT of opinions on timing for takiing CPP. The key is simply knowing as much as possible before making your own decision. The math, coupled with a reasonable life expectancy simply says waiting til 70 makes sense. Again, referring to the comments on this subject, there just isn't a one-size-fits-all rule. It's not an emotional decision. Just a practical one with one question to answer ... When is the right time for me? Personally, after learning so much from your channel Adam, I created my own spreadsheet, did the math and applied it as pragmatically as I could to my life and decided 67-68 is optimal. Granted, things may change ... but having so much practical information and knowing that the plan can/will change sure makes moving on to retirement A LOT LESS WORRYSOME!! Thanks Adam ... and Parallel!!

[todd]

You take your CPP when you need the money. Simple as that. Plenty of people who take it at 60 cannot afford to wait until they're 65 or 70.

[RachelleCorr]

Hi Adam
I love your program. You have convinced me that waiting to take my CPP until 70 is a great idea.
I live in Ontario and wonder if you have any advice on how to find a reputable wealth adviser near me. What are the top three things I should be looking for?

[tracipenny]

Retirement comes in 3 stages: Go-go, Slow-go, and No-go. Take your money at age 60 while you are Go-go and Slow-go and enjoy it. Assuming that you live to No-go, why would you want to be sitting around in your rocking chair with more money building in the bank, and unable to enjoy it like you would in the early years of your retirement? Hopefully, you will have little to no mortgage or debt at age 60, so you won't need as much as you think. You've been paying into it your whole working life, so take it early while it's still there to take.

[Gbr]

Yes, that's right . Live to 90 but sick in bed and then die with lots of unused money.
Lots of folks I know well into their eighties but not in good health and unable to enjoy their money. Take your CPP as soon as you can.

[davecarpenter]

Retired before 60 with a db/bridged/indexed pension. Plan was to work part-time until CPP at 60. I could potentially keep working pt past 60 and let the CPP grow, but how the heck do you figure the dilution effect on CPP of adding more years in a low-wage situation ? Does CPP always calculate to 65 (and then drop the lowest 7 years or whatnot), regardless of when you actually start the CPP ? If you wait until 70 to start, does that add 5 more years of 0 income ? (presuming you're not actually working, but rather just waiting for CPP/70 )

[paulat]

I’m 66 and still working and a very good bill of health as per my Doc. Friends of mine say I should take it now, as I will lose in the long run if I take it at 70. I don’t feel I should. Am I doing the right thing.