When Should You Start CPP? Age 60, 65, or 70 — Canada Pension Plan Guide

The Canada Pension Plan (CPP) retirement benefit can begin at any age between 60 and 70, and the age you choose has a significant impact on your monthly payment for the rest of your life. The standard age is 65, which provides the full calculated benefit with no adjustment. Starting earlier means a permanent reduction: your benefit decreases by 0.6% for each month before age 65, or 7.2% per year. Starting later means a permanent increase: your benefit grows by 0.7% for each month after 65, or 8.4% per year. At the extremes, starting at 60 gives you 36% less than the age-65 amount, while waiting until 70 gives you 42% more.

Starting CPP at age 60 means accepting a significantly reduced monthly payment, but you collect it for five extra years compared to waiting until 65. This option makes sense if you have health concerns that may shorten your life expectancy, if you need the cash flow to cover living expenses or avoid drawing down investments at a loss, or if you have other substantial retirement income (employer pension, rental income) and want CPP as supplementary cash flow early. The reduced amount is permanent — it does not increase to the full amount when you turn 65. However, receiving payments earlier means you can invest them, which partially offsets the reduction if you earn a reasonable return.

Taking CPP at the standard age of 65 is the baseline — you receive your full calculated benefit with no reduction or increase. This is a reasonable default choice for most Canadians, especially if you are uncertain about your health outlook or do not have strong financial reasons to start earlier or later. At 65, you can also begin receiving Old Age Security (OAS), which simplifies your retirement income planning. If you are still working at 65, you can collect CPP while continuing to work and contribute through the Post-Retirement Benefit (PRB), which adds small incremental amounts to your pension each year you continue contributing.

Deferring CPP to age 70 gives you the maximum possible monthly benefit — 42% more than the age-65 amount. For someone entitled to the 2026 maximum pension of approximately $1,507.65 at 65, deferring to 70 would yield roughly $1,937.73 per month. This strategy is optimal if you are in good health and expect to live well into your 80s, if you have sufficient other income (RRSP, TFSA, employer pension, or part-time work) to cover expenses from 65 to 70, and if you want to maximize your guaranteed lifetime income as a hedge against longevity risk. The 8.4% annual increase from deferral is one of the best risk-free returns available anywhere.

The break-even analysis helps you compare the total lifetime CPP income at different starting ages. If you start at 60 versus 65, the break-even point is approximately age 74 — if you live past 74, you would have received more total CPP by waiting until 65. Comparing age 65 versus 70, the break-even is approximately age 82 — living past 82 means deferral to 70 produces more total income. Given that the average Canadian life expectancy is about 82 and continues to rise, deferral often makes mathematical sense for those in reasonable health. However, money has time value, and personal circumstances matter enormously. LazyPlan runs a personalized break-even calculation using your actual CPP entitlement, other retirement income sources, tax situation, and investment return assumptions to recommend the optimal start age for your specific situation.