When Should I Start Taking CPP in Ontario?

The best age to start CPP depends on your health, other income sources, tax situation, and how long you expect to live. There is no universally correct answer — but the decision is consequential and worth analyzing carefully. Starting early gives you money sooner; starting late gives you significantly more per month for the rest of your life.

Understanding the CPP Timing Adjustments

CPP can be started any time between age 60 and 70. Here is how the benefit changes based on when you apply:

• Before 65: Your benefit is reduced by 0.6% per month you take it early. Starting at 60 means 60 months early — a 36% permanent reduction.
• At 65: You receive your standard calculated benefit with no adjustment.
• After 65: Your benefit increases by 0.7% per month you delay. Waiting to 70 means 60 months of growth — a 42% permanent increase.

To put this in dollar terms: if your CPP at 65 would be $1,000/month, starting at 60 gives you $640/month, and waiting to 70 gives you $1,420/month. Both are for life, both are inflation-indexed.

The Breakeven Analysis

The key question is: how long do you need to live for the higher delayed benefit to "catch up" and surpass the total income you would have collected by starting earlier?

The breakeven point between starting at 65 versus 70 is roughly age 82–84 for most scenarios, when accounting for the 5 extra years of payments you forgo by waiting.

What this means practically:

• If you expect to live past 83–84, delaying CPP to 70 will likely pay you more in total over your lifetime.
• If you have health concerns or a shorter life expectancy, taking CPP earlier often makes more sense.
• If you have other income that covers your needs and do not need CPP right away, deferring is often mathematically advantageous for healthy individuals.

When Taking CPP Early Makes Sense

Despite the reduction, starting CPP before 65 may be the right call in several situations:

• You need the income now — you have retired early and your portfolio or pension does not fully cover expenses.
• You have health concerns — if longevity is not on your side, early CPP means you collect more years of payments.
• You want to preserve your portfolio — taking CPP early can reduce RRSP or investment withdrawals in your 60s, allowing those assets to continue growing.
• You are still working at 60–64 — if you have stopped contributing and do not plan to return to work, waiting has less value since your benefit will not increase from additional contributions.

When Delaying CPP to 70 Makes Sense

Deferring to 70 is increasingly popular for those who can afford it, and for good reason:

• You are in good health and have a family history of longevity.
• You have sufficient other income (pension, TFSA, portfolio) to bridge the gap from 65 to 70.
• You are concerned about outliving your savings — a higher CPP at 70 acts as longevity insurance that cannot be outlived.
• You want to reduce OAS clawback risk — if your RRSP is large and RRIF withdrawals will push your income high, a higher CPP taken later alongside lower RRIF minimums may balance out better than early CPP on top of full RRIF minimums.

The Decision Is About More Than the Breakeven

Many people focus too much on the breakeven calculation and not enough on the full picture. The CPP timing decision intersects with:

• Your RRSP/RRIF drawdown strategy
• OAS eligibility and potential clawback thresholds
• Spousal income and pension income splitting rules
• Ontario tax bracket management across your 60s and 70s

Taking CPP at the "wrong" time relative to your other income sources can cost you more in tax than the timing benefit you were trying to capture.

At Pineault Wealth Management in London, Ontario, Marc Pineault integrates CPP timing into a comprehensive retirement income plan — not as an isolated decision but as one piece of a coordinated strategy. If you are within 5–10 years of retirement and want to know when to start your CPP, reach out to book a consultation.

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This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial planner before making any financial decisions.