Should Canada Pension Plan (CPP) users start payments when the pension becomes available at 60 or wait until 65 to receive the basic CPP benefits? To delay or not the CPP is a delicate issue for most soon-to-be retirees. The timing decision doesn’t matter if the senior has amassed substantial retirement savings to cover retirement expenses, with or without the CPP pension.
Users can start CPP payments as early as 60 and not wait for their 65th birthday. However, those with minimal or zero savings have to evaluate their options because of financial consequences carefully.
A report commissioned by the Canadian Institute of Actuaries and the Society of Actuaries shows that more than 95% of Canadians have taken CPP payments at age 65 or earlier. But between the two choices, which is the best option?
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