You can start CPP as early as age 60 or as late as age 70. Starting early means a smaller monthly payment for life. Starting later means a larger one. The right answer depends on your health, your other income sources, and how long you expect to live — and there is no single correct answer for everyone.
What Is CPP and How Is the Amount Calculated?
The Canada Pension Plan (CPP) is a monthly, inflation-indexed retirement benefit paid by the federal government. The amount you receive is based on how much you contributed during your working years and how long you contributed for. The longer and higher your contributions, the larger your benefit.
Service Canada calculates your CPP entitlement using your earnings history going back to age 18. You can see your estimated entitlement by logging into your My Service Canada Account online.
Your Three Start-Date Options
Starting at Age 60 (Early)
You can begin CPP as early as the month after your 60th birthday. However, your benefit is permanently reduced by 0.6% for every month you collect before age 65. If you start at exactly 60, that is a 36% permanent reduction compared to your age-65 amount.
Starting at Age 65 (Standard)
Age 65 is the baseline. The amount you receive at 65 is what Service Canada uses as the reference point for all other calculations.
Starting at Age 70 (Maximum)
For every month you delay CPP past age 65, your benefit increases by 0.7%. If you wait until age 70, your benefit is 42% higher than it would have been at 65 — permanently, and indexed to inflation for life.
The Break-Even Calculation
The most common question is: when do I break even if I delay?
Here is a simplified example. Suppose your CPP at age 65 would be $1,000 per month.
- If you start at 60: You receive $640/month. You collect for more years, but at a reduced rate.
- If you start at 70: You receive $1,420/month — but you give up five years of payments to get there.
The break-even point between starting at 65 versus 70 is approximately age 82 to 83. If you live past that age, deferring wins financially. If you do not, starting earlier wins.
The break-even point between starting at 60 versus 65 is roughly age 74.
What the Break-Even Misses
Inflation Indexing
CPP is fully indexed to inflation. A larger CPP benefit compounds over time in a way a smaller one does not. In a high-inflation environment, deferral becomes even more valuable.
Survivor Benefits
When you die, a portion of your CPP passes to your surviving spouse as a survivor’s pension. The larger your CPP, the larger the survivor’s benefit. For couples where one spouse has significantly higher CPP entitlement, deferral protects the surviving spouse.
OAS Clawback Interaction
If your retirement income is high enough to trigger the OAS recovery tax (clawback), adding CPP income earlier can push you further into clawback territory. In some cases, drawing from RRSP or RRIF first and deferring CPP preserves more net income overall.
Sequence of Returns Risk
For those with investment portfolios, starting CPP earlier provides guaranteed income that reduces the need to sell investments in down markets. This can be a meaningful reason to start CPP sooner — not because the math demands it, but because the stability is worth it.
When Starting CPP Early Makes Sense
- You have a serious health condition or family history of shorter life expectancy
- You stopped working and need the income now
- You have no other guaranteed income sources to live on
- You have significant debt that the income would help eliminate
When Deferring CPP Makes Sense
- You are in good health and have longevity in your family
- You have other income sources (pension, RRSP, savings) that can bridge the gap
- You want to maximise income in your later years when other sources may be depleted
- You are concerned about your spouse’s income if you die first
What About the CPP Enhancement?
Since 2019, CPP has been going through a multi-year enhancement. Canadians who have been contributing at the higher enhanced rates will see larger benefits than the older tables suggest. If you are currently working and contributing, your projected benefit through My Service Canada Account already reflects the enhanced amounts.
The Question You Should Actually Be Asking
Most people ask “when should I start CPP?” when the real question is: “what does my overall retirement income plan look like, and where does CPP fit in it?”
CPP is one piece of a larger picture that includes OAS, RRSP/RRIF drawdown, TFSA, pension income, and non-registered savings. The optimal CPP start date is almost always determined by coordinating across all of those sources — not by looking at CPP in isolation.
Key Takeaways
- CPP can start as early as 60 (reduced by up to 36%) or as late as 70 (increased by 42%)
- The break-even age for deferring from 65 to 70 is roughly age 82 to 83
- Health, other income sources, and your spouse’s situation all affect the decision
- The break-even math is a starting point, not the final answer
- CPP should be coordinated with your full retirement income plan — not decided in isolation
See how this played out for a real client → Robert & Sandra, Odyssey Wealth
Related reading
- Is It Worth Deferring CPP to Age 70?
- How a Defined Benefit Pension Affects Your CPP and OAS Strategy
- CPP Deferral Calculator
This article provides general financial education for Canadians. It is not personalized financial advice. For guidance specific to your situation, consider speaking with a CFP® professional.