Episode 61: When Should I Take CPP? 60, 65, or 70?

Published March 30, 2026

Deciding when to take CPP isn’t just about age — it’s about strategy.

In this episode of Money Monday, Darren Devine, Financial Planner with Sun Life and President of Devine & Associates, explores one of the most important retirement decisions Canadians face: when to start Canada Pension Plan (CPP) benefits.

While CPP can begin as early as age 60 or as late as age 70, the right timing depends on your personal situation — not just the standard ages.

This episode helps you understand:
→ How CPP payments are reduced or increased depending on when you start
→ How CPP fits into your overall retirement income plan
→ The relationship between CPP timing and your other income sources
→ How health, lifestyle, and longevity expectations may influence your decision
→ Why timing decisions should be coordinated with your broader financial plan

There’s no one-size-fits-all answer. The goal is to make a decision that supports both your current needs and your long-term financial security.

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Related Money Monday Episodes

Deciding when to take CPP is just one part of building reliable retirement income.
If you’re thinking about how your income will come together, these Money Monday episodes offer helpful guidance on planning, timing, and long-term sustainability.

Episode 56: What Will Your Paycheque Be in Retirement in 2026? 
Understanding how your income is structured can help you see how CPP fits into your overall retirement paycheque.

Episode 60: Will You Outlive Your Money… or Will Your Money Outlive You? 
CPP timing plays a role in long-term sustainability, helping support income throughout retirement.

Episode 26: RRIF Rules You Should Know 
CPP is just one piece of the puzzle. This episode explains how RRIF withdrawals work alongside other income sources.

Episode 53: 3 Tax Moves Retirees Should Consider Before Filing 
Your CPP decision can affect your taxable income. This episode highlights how tax planning fits into retirement income strategy.

Episode 52: Do You Have a Written Plan — or Just Good Intentions? 
Decisions like CPP timing are most effective when they’re part of a coordinated, written financial plan.

Darren Devine, CFP®, CLU®

Financial Planner, Sun Life
President of Devine and Associates Financial Services Inc.

Should you take CPP at 60?

Wait until 65?

Or delay all the way to 70?

The difference can mean thousands of dollars per year — for the rest of your life.

So how do you decide?

Hello, and welcome to Money Monday, where we help simplify your financial journey.
I'm Darren Devine, Financial Planner with Sun Life and President of Devine & Associates. I’ve been helping families across Ontario plan, protect and enjoy their retirement income for over 20 years.

CPP a.k.a the Canada Pension Plan— timing is one of the most important — and most misunderstood — retirement decisions Canadians make.

Let’s break it down clearly.

The Basics: How CPP Works

  • You can start CPP as early as age 60 or as late as age 70.
  • Age 65 is considered the standard starting point.
  • If you start early at 60, your payments are reduced.
  • If you delay past 65, your payments increase.

Currently:

  • Starting at 60 reduces your benefit by 0.6% per month before age 65 (up to 36% reduction total).
  • Delaying after 65 increases your benefit by 0.7% per month (up to 42% increase by age 70).

Those adjustments are permanent. (Canada.ca)

So What’s the “Best” Age?

There isn’t one universal answer.

It depends on three major factors:

1. Longevity

If you live into your late 80s or 90s, delaying CPP can significantly increase lifetime income.

If health concerns suggest a shorter retirement horizon, starting earlier may make more sense.

The break-even age — where waiting starts to pay off — is often somewhere in your late 70s or early 80s, but it varies.

2. Income Needs

Are you still working at 60?

Do you need the income immediately?

Or can your portfolio support you while you delay?

If you don’t need CPP early, delaying can act like a guaranteed, inflation-adjusted increase to your future income.

For some retirees, that can reduce pressure on investments later.

3. Tax Strategy

CPP is taxable income.

If you’re still earning employment income or drawing heavily from RRSPs, starting CPP early could push you into a higher tax bracket.

Delaying may allow for better income smoothing — especially if you’re strategically drawing down RRSPs in your early retirement years.

CPP timing should be coordinated with your broader retirement income plan.

The Bigger Picture

CPP is just one piece of the retirement income puzzle.

It interacts with:

  • OAS
  • Pensions
  • RRIF withdrawals
  • Tax brackets
  • Longevity planning

Taking CPP early isn’t “wrong.”

Waiting until 70 isn’t automatically “right.”

It’s about structure.

If you’re within five years of retirement — or already retired and unsure whether you’ve made the optimal choice — it’s worth reviewing.

A coordinated strategy can make a meaningful difference over a 25–30 year retirement.

And sometimes the best decision isn’t the most obvious one.

Thanks for tuning into Money Monday. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!

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