When Should You Start CPP?
Chris Ball - Nov 10, 2026
If you have enough savings or other income, are in good health, and expect to live well into your 80s, delaying CPP toward age 70 is often attractive because it provides a larger, inflation-indexed pension for life.
Starting earlier can be appropriate when cash flow is needed, health or longevity expectations are shorter, or taking CPP avoids expensive debt or withdrawals.
What Changes at Ages 60, 65 and 70?
CPP can generally start as early as age 60 or as late as age 70. Relative to the amount payable at age 65, benefits are reduced by 0.6% for each month before age 65 (up to 36%) and increased by 0.7% for each month after age 65 (up to 42%). Delaying beyond age 70 does not increase the pension further.
CPP Payment Comparison
| Starting Age | Adjustment vs. Age 65 | Example Monthly CPP |
|---|---|---|
| 60 | 36% lower | $640 |
| 65 | Baseline | $1,000 |
| 70 | 42% higher | $1,420 |
Illustration only. Assumes a $1,000 monthly CPP entitlement at age 65, expressed in constant purchasing-power dollars. Actual Service Canada estimates may differ, including due to contributions made between ages 60 and 70.
Lifetime Break-Even Comparison
Ignoring taxes, investment returns, mortality before the comparison date, and differences in future contributions, the approximate ages at which cumulative payments become equal are:
| Comparison | Approximate Break-Even Age |
|---|---|
| Start CPP at 60 vs. 65 | 74 |
| Start CPP at 65 vs. 70 | 82 |
| Start CPP at 60 vs. 70 | 78 |
These are simple arithmetic break-even points, not forecasts or personalized recommendations. They assume constant real monthly benefits and ignore the time value of money. Actual comparisons can change with earnings, contributions, taxes, survivor benefits, and investment assumptions.
Factors That Should Drive the Decision
Health and Longevity
A longer expected lifespan favours a higher lifelong pension, while a shorter life expectancy can favour starting payments earlier.
Income Needs and Portfolio Risk
Starting CPP earlier may reduce withdrawals from investments. Delaying CPP can provide stronger guaranteed income later in retirement and help reduce longevity risk.
Taxes and Government Benefits
CPP income is taxable. Consider your current and future marginal tax rates, as well as potential impacts on Old Age Security recovery tax and other income-tested benefits.
Work and Contributions
If you continue working while receiving CPP before age 70, CPP contributions may generate post-retirement benefits. Additional earnings and contributions can also affect estimates when CPP is delayed.
Spouse or Partner Considerations
Consider household retirement income as a whole, including survivor benefit rules and limits. CPP is not automatically inherited in full by a surviving spouse or partner.
Your Contribution History: Starting Work in Canada in 1989
If you began working in Canada in 1989, your CPP record may include years of low or zero Canadian pensionable earnings before that date.
The general CPP drop-out provision excludes a portion of the lowest-earning months from the contributory period, and additional exclusions may apply for child-rearing or disability periods. The precise number of excluded months depends on your individual earnings history and contributory period.
Review your Statement of Contributions and your CPP estimates at ages 60, 65, and 70 through your My Service Canada Account. You may also wish to confirm with Service Canada whether child-rearing or disability provisions apply to your situation.
Practical Recommendation
A reasonable starting point is to consider age 70 if you are healthy, can comfortably finance the years before age 70, and value stable lifetime income.
Age 65 may be appropriate if you prefer a balance between earlier cash flow and pension size.
Age 60 may make sense if income is needed sooner or there are meaningful health or financial reasons not to wait.
The final decision should be based on your actual CPP estimates and a coordinated retirement cash-flow and tax projection.
Information Needed for a Personalized Recommendation
A personalized CPP strategy generally requires:
- Date of birth
- Expected retirement date
- CPP estimates at ages 60, 65, and 70
- Current and expected future income
- RRSP, RRIF, TFSA, and non-registered investment balances
- Marital status and partner's pension situation
- Health and longevity assumptions
- Expected retirement spending needs
Additional Resources
- Government of Canada: When to Start Your CPP Retirement Pension
- https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/when-start.html
- Government of Canada: CPP Retirement Pension
- https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit.html
- My Service Canada Account
- https://www.canada.ca/en/employment-social-development/services/my-account.html
This document is educational, not individualized tax or financial advice. Confirm current rules and personal estimates with Service Canada and your professional advisers.