One question that often comes up about CPP benefits is whether to take it earlier or later. If you Google this, you’ll get different answers: some say take it early, others say take it later. It seems the experts don’t quite agree, so I wanted to do a thorough analysis myself.
Now, before I dive into the analysis, let me quickly explain how taking CPP earlier, or later, works. Assuming you will be age 60 after 2016, the CPP early and late withdrawal rules work like this:
Find out here
Presented by WealthBar. Providing Canadians with low cost online investing and financial advice. Specializing in retirement income planning.
Now, before I dive into the analysis, let me quickly explain how taking CPP earlier, or later, works. Assuming you will be age 60 after 2016, the CPP early and late withdrawal rules work like this:
- If you take CPP before 65, you take a 7.2% penalty per year on your CPP payments (up to 36% at age 60)
- For each year you wait after 65, you gain an 8.4% increase in your CPP payments (up to 42% at age 70)
Find out here
Presented by WealthBar. Providing Canadians with low cost online investing and financial advice. Specializing in retirement income planning.