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If you're between age 60 and 65 now, and you're thinking of starting your CPP early in 2014, you may want to consider applying immediately for a December 2013 start date instead. That's because the reduction factor for starting your CPP earlier than age 65 increases to 0.56%/mth in 2014, from 0.54%/mth in 2013.
Using the most extreme example, if your 60th birthday was in Nov 2013 your retirement pension would be reduced by 32.4% (60 x 0.54%) if you start receiving it in December, but it will be reduced by 33.04% (59 x 0.56%) if you start receiving it in January. That means that if you wait until January 2014,you have passed up on a December payment of 67.6% plus your ongoing payment will be approx. 0.64% less monthly.
There is a slight advantage to waiting for 2014, in that the general dropout increases from 16% to 17%. It is highly doubtful however, that this extra dropout period will make up for passing up on the December payment, plus the greater % decrease in benefit in 2014.
If this applies to you, your application must be received by Service Canada on or before Nov 30th in order to request a December 2013 start date.
Using the most extreme example, if your 60th birthday was in Nov 2013 your retirement pension would be reduced by 32.4% (60 x 0.54%) if you start receiving it in December, but it will be reduced by 33.04% (59 x 0.56%) if you start receiving it in January. That means that if you wait until January 2014,you have passed up on a December payment of 67.6% plus your ongoing payment will be approx. 0.64% less monthly.
There is a slight advantage to waiting for 2014, in that the general dropout increases from 16% to 17%. It is highly doubtful however, that this extra dropout period will make up for passing up on the December payment, plus the greater % decrease in benefit in 2014.
If this applies to you, your application must be received by Service Canada on or before Nov 30th in order to request a December 2013 start date.