When Should You Start CPP? The Decision That Affects Your Income for Life
What you will learn: What happens to your CPP payment depending on when you start, how to calculate the break-even point, and the four factors that should drive your decision.
Every month you wait past 65 to start CPP, your payment increases by 0.7%. Waiting the full 5 years from 65 to 70 adds 42% to your monthly payment — permanently, for life. Every month you start before 65, your payment is reduced by 0.6%. Starting at 60 instead of 65 cuts your payment by 36% — permanently.
George and Frank are brothers, both turning 65 in 2026. Both have identical CPP entitlements: $900/month at age 65.
George takes CPP immediately at 65. Frank, who is still healthy and has some savings, decides to wait until 70.
Frank's CPP at 70: $900 × 1.42 = $1,278/month. He forfeited 5 years of $900 payments ($54,000 total) to gain an extra $378/month.
At what age does Frank break even? Divide what he gave up ($54,000) by the extra amount he gains each month ($378): 54,000 ÷ 378 = about 143 months, or about 12 years past age 70 — age 82. If Frank lives past 82, waiting was worth it. The average Canadian man who reaches 65 today can expect to live to approximately 84.
George does not regret his choice either — he needed the income at 65 and used those years of CPP to help with his mortgage. Both decisions were right for their situations.
The Three Age Options — What Each One Means
| Start age | Effect on payment | Example (if $900 at 65) |
|---|---|---|
| Age 60 | −36% (−0.6%/month × 60 months) | $576/month |
| Age 65 | Standard amount (no adjustment) | $900/month |
| Age 70 | +42% (+0.7%/month × 60 months) | $1,278/month |
You can start CPP at any month between age 60 and 70 — it does not have to be on a birthday. The adjustment applies pro-rated for each month early or late.
The Break-Even Calculation
The break-even point is the age at which your total lifetime CPP income is the same whether you started early or late. After that age, the person who waited comes out ahead.
Simple break-even formula:
Months to break even = (Years waited × 12 × Lower payment) ÷ (Monthly increase)
Example: Waiting from 65 to 70 (60 months × $900) = $54,000 given up. Monthly gain: $1,278 − $900 = $378. Break-even: $54,000 ÷ $378 = 143 months = ~12 years past 70 = age 82.
Key break-even reference points for someone whose CPP at 65 is $900/month:
- Taking at 60 vs 65: break-even at approximately age 74
- Taking at 65 vs 70: break-even at approximately age 82
- Taking at 60 vs 70: break-even at approximately age 85
The Four Factors That Should Drive Your Decision
Factor 1: Your health and family history
Factor 2: Whether you need the income now
Factor 3: The interaction with GIS and other income-tested benefits
Factor 4: Whether you are still working
If you are receiving CPP and are still working between ages 60 and 70, you and your employer must continue making CPP contributions (unless you opt out after 65). These contributions create the Post-Retirement Benefit (PRB) — an additional small monthly payment on top of your existing CPP. The PRB is calculated separately and added automatically to your CPP each January based on the previous year's contributions. It is small but permanent.
How to Find Your CPP Estimate
Before making this decision, find out what your actual CPP amount would be at different ages. There are two ways:
Using My Service Canada Account:
There is no single right answer. The decision depends on your health, your income needs, your other benefits, and your longevity expectations. What matters is making an informed choice — not guessing.
If in doubt: call Service Canada at 1-800-277-9914 and ask them to walk through your options with you. This conversation is free and takes about 20 minutes.
The CPP Enhancement — Why Newer Retirees Get More
If you worked and contributed after 2019, your CPP may be higher than what older tables predict. The federal government began the CPP Enhancement in 2019 — higher contribution rates that gradually increase the maximum CPP benefit for those who work under the enhanced system. If you are in your 50s or 60s and still working, each year you contribute under the enhanced rates adds to your eventual benefit.
The Canada Pension Plan was also extended in 2024 to include a second additional component (CPP2) for higher earners — contributions on earnings above the Year's Maximum Pensionable Earnings (YMPE) up to a second ceiling. This affects primarily people earning above $68,500/year and creates additional CPP income in retirement.
Quick Answers
It depends on four things: your health and longevity expectations, whether you need the income now, how CPP interacts with GIS or other benefits, and whether you are still working. Log in to My Service Canada Account to see your personal estimates at each age, then calculate your break-even point. If you are unsure, call Service Canada at 1-800-277-9914 — they will walk through your specific numbers with you.
Within the first 12 months of starting CPP, you can request to cancel and repay all benefits received — after which you would be treated as if you never applied. After 12 months, the decision is permanent and cannot be reversed. Call Service Canada immediately if you are still within the 12-month window and are having second thoughts.
OAS is not affected by CPP timing — you qualify for OAS at 65 regardless of when you start CPP. GIS IS affected: CPP income counts toward the income threshold for GIS eligibility. If you qualify for GIS, a higher CPP payment could reduce or eliminate your GIS. This interaction can significantly change the math — discuss it with Service Canada before deciding.
CPP is based entirely on what you contributed during your working years. If you never worked or worked very few years with low earnings, your CPP entitlement will be small or even zero. In that case, OAS (which is not contribution-based) and GIS (if your income is low) are your primary federal income supports. There is no minimum CPP payment — you receive exactly what your contributions entitle you to.