For every year before age 65, your CPP benefit is reduced by 7.2%. For every year after age 65, your CPP benefit is increased by 8.4%. That means that if you decide to access your CPP benefits when you turn 60, you’re choosing to get 36% less on each CPP benefit cheque. However, if you wait until your 70th birthday, you’ll get 42% more on each CPP benefit cheque.
Depending on your income, it might be better to get a greater number of smaller-sized benefit cheques by accessing CPP benefits before age 70. If you are middle- or higher-income, you might want to take a lower number of larger-sized benefit cheques by assessing CPP benefits at age 70.
Read more in our article about maximizing government benefits at retirement.
