The CPP retirement pension at age 60 is exactly 36% lower than the age-65 amount, for life. This page covers the breakeven math, when starting at 60 actually wins, and the practical situations where it’s the right move.
Quick answer: Take CPP at 60 if you’ve stopped working without other income, expect a life expectancy below about age 74, or want OAS-clawback room later. Wait until 65 if you’re still working or in good health with savings.
What this means: The breakeven is roughly age 74. If you live to 74 or beyond, age 65 wins on lifetime dollars. Below 74, age 60 wins because of the five years of extra payments.
What to do next: See your actual numbers across all three start ages. Run the CPP calculator →
The 36% reduction
Each month before age 65, CPP reduces by 0.6%. Sixty months × 0.6% = 36%. So a $1,433 age-65 pension becomes $917 if started at 60. That cut is permanent — you don’t catch up at 65.
Breakeven math
Compared to age 65:
- Start at 60: 60 monthly payments × 64% of age-65 amount = 38.4 “months’ worth” of advance payments
- Each month past 65: you receive 36% less than the age-65 amount — you fall behind 0.36 “months’ worth” per month
- Catch-up: 38.4 / 0.36 ≈ 107 months past 65 = age 73 years 11 months
If you live past about 74, the age-65 start wins on lifetime dollars. Below 74, age 60 wins. Inflation indexing slightly favours the later start (the bigger base also gets indexed) but the difference is small over 15-year horizons.
When age 60 actually wins
- You’ve stopped working with limited savings. Cash flow today beats lifetime maximization when you’re drawing down a small RRSP.
- Life expectancy is meaningfully below average. Smokers, chronic-illness diagnoses, family history of early death — the long-tail bet doesn’t favour you.
- You want OAS-clawback room. Smaller CPP at 65+ leaves more room for RRIF withdrawals before hitting the OAS recovery threshold.
- You expect to invest the early payments. If you genuinely save and invest the early CPP at a real return above 3-4%, you can match the deferred amount — in practice almost no one does this.
When 60 doesn’t win
- You’re still working and would just pay more tax on the early CPP
- You’re in good health and have RRSPs / TFSAs to draw from
- You expect to live well into your 80s or 90s — the later-start indexed pension keeps growing in real terms
Worked example
Sarah qualifies for the 2026 CPP maximum at age 65 ($1,433/month). She’s 60, retired, and has $80,000 in an RRSP plus a $30,000 TFSA. Three options:
| Strategy | Age 60 | Age 65 | Age 70 | To age 80 lifetime |
|---|---|---|---|---|
| Take CPP at 60 | $917/mo | $917/mo | $917/mo | $220,080 |
| Take CPP at 65 | $0 | $1,433/mo | $1,433/mo | $257,940 |
| Take CPP at 70 | $0 | $0 | $2,035/mo | $244,200 |
Past 80, age 65 wins, but Sarah’s cash flow problem is in her early 60s. Taking CPP at 60 plus drawing the RRSP keeps her solvent without selling assets in a down market. The lifetime difference is about $38,000 over 20 years — real, but a manageable trade for liquidity now.
Frequently asked questions
- How much does CPP get reduced if I take it at 60?
- 36% less than the age-65 amount, for life. The reduction is 0.6% per month early, capped at 60 months.
- What's the CPP breakeven between age 60 and 65?
- Roughly age 74. Below that, taking CPP at 60 produces more lifetime dollars; above, age 65 wins.
- Should I take CPP at 60 if I'm still working?
- Usually no. The 36% reduction is permanent, and the early CPP just adds taxable income on top of your salary.
- Can I invest CPP taken at 60 to make up the gap?
- In theory yes, if you actually invest at a real return above 3-4%. In practice almost no one does this, and CPP indexing happens to the deferred amount too.
- Does taking CPP at 60 affect OAS?
- No. CPP and OAS are independent decisions. Taking CPP at 60 may indirectly help with OAS clawback because your CPP income at 65+ is smaller.
- What's the maximum CPP at age 60 in 2026?
- $1,433 (2026 max at 65) × 64% = approximately $917 per month.