Why would I defer my CPP past age 65?
Why Would I Defer My CPP Past Age 65?
Deciding when to start collecting your Canada Pension Plan (CPP) benefits is one of the most crucial retirement decisions you’ll make. While age 65 is often seen as the standard starting point, deferring your CPP could significantly impact your financial well-being during retirement. But why defer? The decision isn’t as simple as it seems.
The Timing Dilemma
When you take your CPP benefits directly affects the amount you’ll receive monthly for the rest of your life. If you start at 65, you receive your full eligible amount. However, for each year you delay, your monthly payment increases by 8.4% until age 70, potentially giving you up to 42% more. Conversely, taking CPP early, as early as 60, reduces your benefits by 7.2% for each year you start before 65. While this seems straightforward, the best time to start depends on various factors: your life expectancy, other retirement income sources, tax implications, your retirement goals, and lifestyle needs. These variables make it nearly impossible to know when deferring is truly in your best interest without comprehensive analysis.
How Optiml™ Helps You Make the Right Choice
Optiml™ takes the guesswork out of this decision. Our proprietary software is designed to test every possible scenario, analyzing the impact of taking CPP at each age from 60 to 70. By considering your unique financial situation, including other retirement income streams, life expectancy, and desired retirement lifestyle, Optiml™ will provide you with a personalized recommendation on the optimal time to start collecting CPP. No more worrying about whether you’re leaving money on the table or taking unnecessary risks. Optiml™ empowers you with clear, actionable insights to make the best decision for your future. Start optimizing your retirement today with Optiml—because the right time to start your CPP is different for everyone.