Deciding when to start your Canada Pension Plan (CPP) is one of the most important financial choices you’ll make for your retirement. In Canada, you have the option to begin receiving your CPP benefits between the ages of 60 and 70. But the optimal time to start isn’t always clear. It requires careful thought about factors like your current lifestyle, future plans, and long-term financial needs. This When to Take CPP Benefits calculator is designed to help you make a more informed decision based on your unique situation.
When to Take CPP Benefits
This When to Take CPP Benefits calculator compares the value of CPP benefits if you take them earlier or later.
Whether you’re considering taking CPP earlier for immediate income or waiting for larger payouts later, this tool provides a clear comparison of how each choice can impact your retirement over time.
When to Take CPP Benefits
Calculators are available in English and French.
Factors to Consider
Income Needs: Are you in a position to enjoy life now, while you’re younger and healthier? Starting CPP early may give you more money now, but it also means smaller payments for the rest of your life. Think about your current needs, but also your goals as you move into retirement.
Taxes: CPP benefits are considered taxable income. The earlier you start, the more years of tax you’ll pay on those smaller payments. But delaying your CPP benefits means fewer years of taxes—though, it also means waiting longer to start receiving them.
Longevity: The longer you live, the more income you’ll need. Delaying your CPP to receive larger payments might make sense if you expect a long retirement, but it’s a balancing act. Starting earlier provides income now, but starting later gives you bigger checks for potentially longer.
Income Sources: What other income sources do you have? A pension, savings, or other investments can help support you now if you choose to delay CPP, or they might fill in gaps if you start taking CPP earlier.
With this When to Take CPP Benefits calculator, you’ll be able to see how different start dates affect your overall retirement plan, helping you find that sweet spot—the breakeven age. At this age, the total amount you’ve received in CPP benefits becomes equal, whether you start early or later. It’s a powerful tool for understanding how your decision today will impact your financial future.
Why Share This Calculator with Your Clients?
As a financial planner, giving your clients access to tools like the When to Take CPP Benefits calculator shows that you’re not just offering one-size-fits-all advice. You’re helping them understand their options and giving them the ability to make decisions based on their specific needs, goals, and circumstances. Sharing this tool fosters a more personalized and intentional approach to retirement planning, building confidence that they’re on the best path for their future. It’s a valuable step toward ensuring that they’re not just prepared for retirement—but that they can thrive in it.
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Calculators are available in English and French.
The calculator can be viewed for free up to five (5) times.
To use the full-featured versions of these calculators in FreshPlan, please contact us.
Companion Infographic
Collecting Canada Pension Plan benefits sooner means taking a little less now instead of waiting for more later. Everyone’s financial situation is different and this companion infographic will help start those conversations.
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