When should you start taking CPP at 60, 65, or 70?

Choosing when to begin the Canada Pension Plan retirement pension is one of the most important decisions in a retirement income plan. You can generally start as early as age 60, take it at the standard age of 65, or delay it until age 70 for a larger monthly payment.

There is no universally best CPP start age. The right choice depends on your health, savings, employment income, tax situation, household expenses, and expectations about how long you may live. Your decision can also affect other benefits, including the Guaranteed Income Supplement (GIS).

CPP is separate from Old Age Security (OAS). OAS cannot begin before age 65, while CPP may start earlier. Before choosing a date, review your estimated pension through My Service Canada Account and consider how all sources of retirement income will work together.

How the start date changes your pension

Starting CPP before age 65 reduces your monthly payment permanently. The reduction is 0.6% for every month before 65, up to a maximum reduction of 36% if you begin at age 60. This can provide valuable income when employment ends early or savings are limited.

Delaying CPP after 65 increases the payment by 0.7% for every month you wait, up to age 70. The maximum increase is 42%. Once you reach 70, delaying longer does not increase your CPP retirement pension, so there is usually no reason to postpone an application beyond that age.

Your actual amount also depends on your contribution history, earnings, and the CPP enhancement. Someone with many years of low or interrupted earnings may receive considerably less than the maximum, regardless of the start date.

When starting at 60 may make sense

Taking CPP at 60 can be practical if you need reliable income immediately, have little cash savings, or want to reduce withdrawals from investments during a weak market. It may also suit someone with serious health concerns or a shorter expected lifespan, since waiting for a larger payment may not provide enough time to recover the missed payments.

Starting early can help pay for housing, food, medication, and other essential costs. However, the lower amount continues for life, including during periods when inflation raises household expenses. CPP is taxable income, so the after-tax amount may be lower than the payment shown on your estimate.

If you continue working while receiving CPP, contributions may create a Post-Retirement Benefit. Contributions are generally required until age 65 and can be voluntary from 65 to 70 while working and receiving CPP. This extra benefit can increase future payments modestly.

Why age 65 remains a common choice

Age 65 is the standard reference point for CPP and the earliest age for OAS. Starting CPP then can simplify retirement planning, especially for people who are leaving work and want a predictable income stream alongside OAS, workplace pensions, and personal savings.

It can also be a reasonable middle ground for people who are healthy but do not want to wait until 70. The payment is larger than it would be at 60, while income begins five years earlier than it would under a delayed-CPP strategy.

Your broader benefits picture matters. CPP counts as taxable income and may affect income-tested assistance. If you expect to qualify for GIS after receiving OAS, compare different CPP start dates carefully. Lower CPP income may sometimes preserve more GIS, although the overall result depends on your total income and marital status. Canadians with modest income should also review the GST/HST credit guide when estimating their full benefit package.

The case for waiting until 70

Delaying CPP is attractive for people who are healthy, expect a long retirement, and have enough savings or employment income to cover expenses before age 70. The higher lifetime payment provides stronger protection against living into the 80s or 90s and can reduce the amount you need to withdraw from investments later.

A larger CPP payment may be especially useful for the spouse with the higher contribution record. If that person dies, the survivor pension rules may provide some protection to the surviving spouse, although the survivor benefit is subject to limits and will not simply equal two full CPP pensions.

The trade-off is that you give up several years of payments. The break-even age often falls somewhere in the mid-to-late 70s, but it varies with investment returns, taxation, inflation, health, and the value of survivor benefits. Delaying is not automatically superior; it is a form of longevity insurance.

Start age General CPP adjustment Potential advantage Main trade-off
60 Up to 36% lower than at 65 Income begins early Permanently smaller payment
65 Standard amount Balanced timing and simpler coordination with OAS Gives up the larger delayed amount
70 Up to 42% higher than at 65 Stronger income for later life No CPP payments during the waiting period

Personal factors that should guide the decision

Health and family longevity are important, but they should not be the only considerations. A person in good health with parents who lived into their 90s may value a larger guaranteed payment. Someone facing immediate financial pressure may reasonably prioritize cash flow over a future increase.

Consider taxes as well as gross income. CPP, OAS, RRSP withdrawals, workplace pensions, and investment income can combine to push a household into a higher tax bracket. Coordinating withdrawals before age 71, when RRSPs generally must be converted or withdrawn, may reduce future tax pressure.

Couples should make the decision together rather than treating each CPP pension separately. One partner may start early while the other delays, creating a balance between current income and future protection. Pension sharing may also help manage taxable income, subject to the applicable rules.

Build a decision using real numbers

Create a simple retirement budget showing essential costs, flexible spending, debts, emergency savings, and expected income. Then compare at least three scenarios: CPP at 60, CPP at 65, and CPP at 70. Include OAS, GIS eligibility, workplace pensions, investment withdrawals, and taxes where possible.

The government’s CPP estimate is a useful starting point, but it does not replace personal planning. A licensed financial planner or qualified tax professional can help assess survivor benefits, pension sharing, investment assumptions, and the effect of income-tested programs. People considering retraining or changing careers can also review the Canada Training Benefit information when planning employment income before retirement.

Practical steps before applying

A CPP decision is permanent, so avoid choosing solely because friends or relatives selected a particular age. Review your numbers, understand the lifetime trade-offs, and apply through the official Government of Canada process when your plan is clear. A careful comparison today can help create steadier retirement income for decades ahead.