When to Take CPP or QPP: Age 60, 65, or 70?

The Three Starting Ages and Their Permanent Effects

The reference age is 65. If you take CPP or QPP before 65 (as early as 60), your monthly pension is reduced by 0.6% for every month you take it early. Starting at 60 means 60 months early — a permanent 36% reduction. If you delay past 65 (up to age 70), your pension increases by 0.7% per month of delay. Waiting until 70 adds 42% to your monthly amount — permanently. These rates apply to both CPP and QPP, which mirror each other closely.

• At 60: approximately 64% of the age-65 amount
• At 65: 100% (reference amount)
• At 70: approximately 142% of the age-65 amount

Source: canada.ca — CPP and Retraite Québec.

The Break-Even Age: When Does Waiting Pay Off?

The break-even age is the point at which the cumulative higher payments from a delayed start overtake the cumulative payments from an earlier start. As a rough guide, delaying from 65 to 70 typically breaks even around age 82 to 84 — after that point, deferral is mathematically better. Taking CPP early at 60 versus 65 has a break-even roughly around age 74 to 77: if you live shorter than that, starting early wins; if you live longer, you come out ahead by waiting. These ranges shift depending on assumptions like investment returns on forgone pension income and inflation. Use a CPP/QPP calculator to model your specific numbers.

Delaying as "Longevity Insurance"

Waiting until 70 to start your CPP or QPP pension is essentially buying insurance against the risk of living a very long time — the risk of outliving your money. Your pension is guaranteed for life, indexed to inflation (tied to the Consumer Price Index), and will keep arriving whether you live to 85 or 105. A personal portfolio can be depleted; a government pension cannot. For people in good health with a family history of longevity, deferral is often the most resilient strategy. In the meantime, you can draw down RRSP, TFSA, or non-registered savings to cover living expenses between 65 and 70, allowing your eventual CPP/QPP payment to be substantially larger.

Interaction with Old Age Security (OAS) and Continued Work

OAS can also be deferred — up to age 70 — with a bonus of 0.6% per month of delay (36% more at 70). The two decisions are independent: you can start CPP at 65 and delay OAS, or vice versa. If your income exceeds the OAS clawback threshold after 65, deferring OAS can make particular sense. If you continue working after starting CPP before age 70, your ongoing contributions generate Post-Retirement Benefits (PRB) — small annual additions to your pension each year you keep working. QPP has a similar mechanism. Your specific combination of decisions can meaningfully shift your overall retirement income picture.

When Taking CPP/QPP Early Can Make Sense

Delaying is not the right answer for everyone. Here are situations where starting early is a reasonable choice:

• Poor health or reduced life expectancy: if you have genuine medical reasons to expect a shorter retirement, the math may favour an early start.
• Immediate cash-flow need: if you have few other assets and need income to cover essential expenses from age 60, waiting creates real financial hardship.
• Involuntary exit from the workforce: layoff, disability, or caregiving obligations — in these cases, early CPP may be a necessary lifeline.
• Estate planning considerations: in some complex scenarios, early collection combined with strategic investing of the proceeds can be more effective — worth discussing with a fee-only planner.

Frequently asked questions