# When Is the Best Time to Take CPP? The Answer Depends on These 3 Things

Most Canadians assume they should take CPP as early as possible. Get the money while you can, right? Wrong. For many Canadians, taking CPP early is one of the most expensive mistakes they'll ever make. But waiting too long can also backfire. The truth is, the optimal time to take CPP depends on your specific situation — and getting it right can mean tens of thousands of dollars more in your pocket over your lifetime. Here is what you need to know.

The Basics: When Can You Take CPP? You can start CPP as early as age 60 or as late as age 70. The standard age is 65. Every month you take it before 65, your payment is reduced. Every month you delay past 65, your payment increases. Here is exactly how it works:

Take it before 65: Your payment is reduced by 0.6% for every month before your 65th birthday. That means if you start at 60, your CPP is permanently reduced by 36%. Take it at 65: You receive your full calculated CPP amount. Delay past 65: Your payment increases by 0.7% for every month after your 65th birthday. If you wait until 70, your CPP is permanently increased by 42%.

To put that in real numbers: if your CPP at 65 would be $1,000 per month, taking it at 60 gives you $640 per month. Waiting until 70 gives you $1,420 per month. That is a difference of $780 every single month — for the rest of your life.

The Breakeven Point The most common question is: "Will I live long enough to make waiting worth it?" This is called the breakeven analysis. If you delay from 65 to 70, you give up 5 years of payments. But you receive a much higher amount every month after that. The breakeven point between taking CPP at 65 versus waiting until 70 is approximately age 82 to 83. What that means: if you live past 83, you will collect more total money by waiting until 70. If you pass away before 83, you would have collected more by starting at 65. The average Canadian life expectancy is currently around 82 for men and 85 for women. So statistically, for most Canadians — especially women — waiting pays off.

The 3 Things That Should Drive Your Decision

1.  Your Health and Family History This is the most important factor. If you are in excellent health and your parents lived into their late 80s or 90s, waiting almost always makes mathematical sense. If you have serious health concerns or a family history of shorter lifespans, taking CPP earlier may be the right call. Be honest with yourself here. This is not the place for wishful thinking.
    
2.  Whether You Need the Money If you retire at 60 and have no other income, you may have no choice but to take CPP early. That is a legitimate reason. But if you have RRSP savings, rental income, a pension, or a working spouse, you may be able to bridge the gap from 60 to 65 or even 70 without touching CPP. In that case, letting CPP grow is almost always the smarter move.
    
3.  Your Tax Situation CPP is taxable income. If you are still working or have other significant income sources, taking CPP early could push you into a higher tax bracket unnecessarily. Delaying CPP until your income drops — typically in full retirement — often means paying less tax on every dollar you receive. This is a detail most people completely overlook.
    

The Case for Taking CPP Early There are situations where taking CPP at 60 or 62 makes sense:

You have a serious health condition You have no other retirement income and genuinely need the cash flow You plan to invest every CPP dollar and are confident in strong investment returns You have a spouse who will have a strong CPP and survivor benefits are less of a concern

The investment argument — taking CPP early and investing it — sounds compelling in theory. In practice, it requires consistent discipline and strong market returns to beat the guaranteed 42% increase you get by waiting until 70. Most people are better off with the guaranteed increase.

What Most Canadians Get Wrong The biggest mistake is making this decision based on emotion rather than math. "I paid into it my whole life, I want it now" is understandable — but it is not a financial strategy. The second biggest mistake is making this decision in isolation. CPP timing should be looked at alongside your OAS timing, your RRSP/RRIF drawdown strategy, your spouse's income, and your overall tax plan. These decisions are interconnected. In our experience working with Canadians approaching retirement, the ones who take the time to model out their CPP timing as part of a complete retirement income plan almost always end up with significantly more after-tax income than those who just take it at 60 because they can.

The Bottom Line For most healthy Canadians with other retirement income sources, waiting until at least 65 — and ideally 70 — will result in significantly more lifetime CPP income. For Canadians in poor health, with no other income, or who retire very early with limited savings, taking CPP sooner may be the right call. There is no one-size-fits-all answer. But there is a right answer for your situation — and it is worth taking the time to figure it out.

This article is for educational purposes only and does not constitute personalized financial advice. For guidance tailored to your specific situation, consider speaking with a qualified financial planner. You can find a CFP professional through FP Canada. Ready to explore your retirement income strategy? Try WealthOS free — Canadian financial guidance available anytime.