When Should You Start CPP? Timing Strategies for Maximizing Your Benefits

One of the most important decisions about the Canada Pension Plan (CPP) is when to start receiving your benefits. While the standard age is 65, you have the flexibility to start as early as 60 or delay until age 70. Each option has a direct impact on the monthly payment you’ll receive and your total lifetime benefit.

Choosing the right timing is a personal decision that depends on your financial needs, health, and long-term retirement strategy.

Early, Standard, or Delayed: Your CPP Start Options

You can begin receiving CPP:

Start Age	Adjustment to Monthly Payment	Key Considerations
60	Reduced by 0.6% per month before 65 (up to 36% total reduction)	Immediate income but smaller lifelong benefit
65	Standard calculated benefit	Balanced approach with no adjustment
70	Increased by 0.7% per month after 65 (up to 42% total increase)	Larger lifelong benefit, but delayed income

These adjustments are designed to reflect the fact that starting earlier means more total payments over time, while delaying benefits results in higher monthly income but fewer years of payments.

Factors to Consider When Choosing Your CPP Start Date

The decision of when to start CPP depends on several key factors:

Immediate income needs: Do you need the cash flow at 60, or can you rely on other income sources?
Life expectancy and health considerations: If you expect a longer retirement, delaying CPP may provide more lifetime value.
Other retirement income sources: Coordinating CPP with RRSP withdrawals, pensions, and TFSAs can optimize your tax situation.
Employment status: If you continue to work past 60, delaying CPP may help avoid higher taxation and maximize benefits.
Risk tolerance and peace of mind: Some prefer the security of guaranteed income earlier, while others aim to maximize future payments.

Optimize helps you evaluate these personal and financial factors to determine the best timing strategy.

The Trade-Off Between Early and Late CPP Benefits

Starting CPP early provides smaller monthly payments for life, but you receive them for a longer period. Delaying CPP results in larger payments, but you forgo several years of income.

This creates a breakeven point—typically in your late 70s or early 80s—where delaying benefits becomes financially advantageous if you live long enough. However, the right choice is not purely mathematical; it should align with your personal situation and retirement goals.

Strategic Timing in Context of Your Overall Retirement Plan

Deciding when to start CPP should not be done in isolation. A well-timed CPP strategy can:

Reduce the pressure on personal savings in early retirement.
Coordinate with tax-efficient withdrawal strategies from RRSPs and TFSAs.
Help manage Old Age Security (OAS) clawback risks.
Support income-smoothing strategies, avoiding large tax spikes or benefit reductions.

Optimize ensures CPP timing fits within your broader retirement income plan for maximum benefit.

How Optimize Helps You Make the Right CPP Timing Decision

At Optimize, we don’t offer one-size-fits-all advice. We help you:

Model different CPP start scenarios, showing their impact on your lifetime income.
Incorporate health, lifestyle, and family considerations into the decision.
Balance CPP timing with other income sources, ensuring tax efficiency.
Coordinate CPP timing with OAS and other government benefits.
Adjust your retirement plan over time, reflecting changes in your circumstances and goals.

With Optimize’s guidance, you can make an informed, confident decision about when to start CPP—aligned with your financial plan and retirement vision.