When Should You Start Collecting CPP? | Canada Pension Plan Explained

My Service Canada: https://www.canada.ca/en/employment-s...

Episode Two:    • Calculating CPP's Break Even Point | ...  
Episode Three:    • 5 Reasons To Start Collecting CPP At ...  
Episode Four:    • 5 Reasons To Start Collecting CPP At ...  
Episode Five:    • 5 Reasons To Start Collecting CPP At ...  

You can start collecting CPP anytime between your 60th and 70th birthday. As long as you made at least 1 payment to CPP in your lifetime, you qualify for a benefit.

How much can you get? The 2021 numbers are:

Maximum at age 65: $1,203.75

Average at age 65: $689.17

Your CPP payment is based on the amount and years you contributed to CPP.

As said above, you have a big 10 year window to decide when you want to start collecting your payments...how do you decide when to start? First we need to understand the factors that will play into that decision.

If you decide to start collecting CPP payments before the age of 65, you will have a 0.6% reduction for each month = 7.2% per year.

If you decide to start collecting CPP payments after the age of 65, you will have a 0.7% increase for each month = 8.4% per year.

CPP is taxable income, so consider other income sources and tax rates when determining when to start CPP

5 things you must consider when applying for CPP:

1. Do you have a pension plan from your employer

2. How much RRSP and other registered investments do you have

3. Are you married or single?

4. Personal and family health

5. Are you still working?

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

The content on this channel is for educational purposes only and does not provide specific investment or planning recommendations. Viewers should consult a qualified professional for retirement, tax, or estate planning guidance. Parallel Wealth and Adam Bornn are not responsible for any decisions made based on this content.