Quick answer: Most healthy 65-year-olds with savings should delay CPP to 70 — the 42% lifetime boost beats the early money for anyone living past about age 82. Most people who’ve already stopped working without savings should start at 60. The middle ground is mostly about health and OAS-clawback exposure.
What this means: The breakeven against age 65 is roughly age 74 (start-at-60) or age 82 (start-at-70). Below those, early wins; above, late wins. CPP is inflation-protected for life, which favours delaying for anyone in good health.
What to do next: Compare lifetime income across all three start ages with your actual benefit estimate. Run the CPP timing calculator →
CPP start-age comparison
| Start age | Effect on monthly amount | 2026 example* | Best for |
|---|---|---|---|
| 60 | −36% for life (0.6%/month early) | $1,433/mo → $917 | Need income now, expect shorter life expectancy, or want OAS-clawback room later |
| 65 (default) | Standard amount, no adjustment | $1,433/mo | Average health, no strong reason to take early or delay |
| 70 | +42% for life (0.7%/month late) | $1,433/mo → $2,035 | Healthy, have RRSPs or other savings to bridge to 70, want max lifetime guaranteed income |
* 2026 maximum CPP retirement pension at age 65 is $1,433/mo. Most people receive less than the maximum because their contribution history is below the YMPE every year. Use the CPP timing calculator with your actual estimate.
The Canada Pension Plan (CPP) lets you start anywhere between age 60 and age 70. Each month earlier than 65 cuts the payment 0.6%; each month later boosts it 0.7%. By age 70 the payment is 42% higher than the age-65 amount; by age 60 it’s 36% lower. This page covers how to pick a start age based on health, savings, and tax-clawback exposure. Numbers are 2026 and verified against Service Canada.
How the adjustment works
The adjustment is mechanical. Each month before age 65, the CPP retirement pension is reduced by 0.6%, capped at 36% (60 months × 0.6% = 36%). Each month after age 65, the pension is increased by 0.7%, capped at 42% (60 months × 0.7%). The adjustment is permanent — whatever rate you start at is what you get for life, indexed to inflation.
Service Canada computes the actual amount based on your contribution history. The maximum is only available to people who contributed at the year’s maximum pensionable earnings (YMPE) for 39 of their 40 highest-contributing years.
Breakeven math
Compared to age 65:
- Start at 60: you receive 5 years of payments at 64% of the age-65 amount. Breakeven against age 65 is around age 74. If you live past 74, age 65 produces more lifetime dollars.
- Start at 70: you receive 5 years fewer payments but at 142% of the age-65 amount. Breakeven against age 65 is around age 82. If you live past 82, age 70 wins.
- Start at 70 vs 60: breakeven is around age 79.
These ignore inflation indexing (which favours later start because the bigger base is also indexed) and tax brackets (which often favour earlier start because the smaller payment leaves room for RRIF / OAS).
Health and life expectancy
The CPP timing decision is fundamentally about how long you expect to live. Statistics Canada life expectancy at age 65 is roughly 19.7 years (men) and 22.3 years (women). Average means half live longer; the long-tail favours delaying.
Personal factors that push earlier: smoker, family history of early heart disease or cancer, current chronic illness, occupation with shorter life expectancy. Factors that push later: non-smoker, longevity in family, regular exercise, professional / managerial occupation history.
OAS coordination
OAS is a separate decision. You can start CPP at 60 and OAS at 65, or CPP at 65 and OAS at 70, or any other combination. OAS gets a similar deferral bonus (+0.6%/month, max +36% at 70) but starts at 65, not 60.
OAS clawback (the 15% recovery tax above ~$90,997 of 2024 net income, indexed) is a constraint for retirees with significant RRIF income. Taking CPP earlier reduces income at 65+ and creates clawback room. See CPP and OAS: when to start each benefit and OAS clawback strategies in retirement.
Still working past 60?
If you take CPP while still working:
- You and your employer continue paying CPP contributions until age 65 (mandatory) or 70 (optional, opt out via Form CPT30).
- Each year of continued contributions adds a Post-Retirement Benefit (PRB) on top of your pension.
- The pension itself becomes taxable income on top of your salary — often pushed into a higher tax bracket than necessary.
For most working 60-65-year-olds, delaying CPP until you stop working makes more sense than taking it early. Detailed mechanics in CPP while working: contributions, PRB, and opt-out rules.
RRSP-first strategy
A common pattern for retirees with substantial RRSPs: draw the RRSP down in your early-60s while delaying CPP to 70. The 42% CPP boost is inflation-protected for life; meanwhile, drawing the RRSP earlier converts it at lower marginal rates and reduces forced RRIF withdrawals later (which can trigger OAS clawback). Walk-through in RRSP to RRIF strategy before starting CPP and OAS and should I delay CPP if I have an RRSP?
Common mistakes
- Defaulting to 65. Most people start at 65 because that’s when Service Canada sends the application reminder. The default is rarely the optimal choice.
- Taking CPP while working full-time. Adds tax bracket pressure with no benefit. Wait until you stop working unless you have a specific reason.
- Forgetting CPP and OAS are separate decisions. Each has its own deferral bonus and breakeven. Optimize independently.
- Ignoring the inflation indexing in the comparison. The bigger base (delayed CPP) is also indexed, compounding the lifetime difference.
- Assuming you’ll qualify for the maximum. Most people don’t. Use your actual Service Canada estimate, not the max.
Frequently asked questions
- When can I start CPP in Canada?
- Any month between age 60 and age 70. Most people start at 65, but the optimal age varies by health, savings, and tax exposure.
- How much does CPP go down if I take it at 60?
- 36% lower than the age-65 amount, for life. That's a 0.6% reduction per month early, capped at 60 months.
- How much does CPP go up if I delay to 70?
- 42% higher than the age-65 amount, for life. That's a 0.7% increase per month past 65, capped at 60 months.
- What is the CPP breakeven age?
- Roughly age 74 if comparing start-at-60 vs start-at-65, and roughly age 82 if comparing start-at-65 vs start-at-70. Past those ages, the later start wins on lifetime dollars.
- What's the maximum CPP at age 65 in 2026?
- $1,433.00 per month for new retirees in 2026. Most receive less because their contribution history is below the maximum pensionable earnings.
- Can I take CPP and still work?
- Yes. Contributions continue (mandatory under 65, optional 65-70 via Form CPT30). Each year of continued contributions adds a Post-Retirement Benefit on top.
- Does delaying CPP affect OAS?
- No. CPP and OAS are separate decisions with separate deferral mechanics. OAS starts at 65 with its own +0.6%/month bonus to age 70.
- Can I change my mind after starting CPP?
- You can cancel CPP within 12 months of starting it, but you must repay all benefits received. After 12 months, the start age is locked in.