The Canada Pension Plan (CPP) is one of the most important retirement benefits managed by the Canada Revenue Agency (CRA). For many Canadians, the choice of when to start CPP payments can significantly impact long-term retirement income. The three key options are CPP at age 60, CPP at 65, or CPP at 70.
Each choice comes with trade-offs: claiming early means smaller monthly payments but more years of benefits, while delaying boosts monthly income but shortens the payout period. This article explains the rules, benefits, and drawbacks of CPP at 60 vs. CPP at 65 vs. CPP at 70, with clear comparisons to help you decide.
CPP at Age 60 in Canada: Should You Start Early or Wait Until 65?
4 CRA Traps That Could Slash Your CPP Payments in 2025
CRA Confirmed 6 Benefit Payments in September 2025: Dates, Amounts & Eligibility Explained
Understanding How CPP Works
CPP is funded by contributions from your employment or self-employment income. Unlike Old Age Security (OAS) and Guaranteed Income Supplement (GIS), which are funded by general tax revenues, CPP is directly tied to how much you contributed during your working years.
The standard age to begin CPP is 65, but you can:
- Start early at 60 (with a permanent reduction)
- Wait until 70 (with a permanent increase)
The CRA calculates your benefit based on your best 39 years of contributions, adjusted for inflation.
CPP at Age 60 vs. CPP at 65 vs. CPP at 70: The Payment Difference
Here’s how timing affects your monthly pension:
| Start Age | Adjustment | Monthly CPP (2025 est.) | Annual CPP (2025 est.) |
|---|---|---|---|
| CPP at 60 | 36% reduction | $810 | $9,720 |
| CPP at 65 | Standard rate | $1,270 | $15,240 |
| CPP at 70 | 42% increase | $1,800 | $21,600 |
(Based on 2025 maximum CPP benefit. Actual payments depend on your contributions. Source: canada.ca)
This shows the clear trade-off between CPP at age 60 vs. CPP at age 65 vs. CPP at age 70: starting early gives you cash flow sooner, while delaying offers higher lifetime income if you live longer.
When Taking CPP at Age 60 Makes Sense
- Unemployment or Financial Pressure – If you are unemployed and need income, claiming CPP at 60 may be the best option.
- Health Concerns – For those with a shorter life expectancy, collecting early ensures you benefit from contributions made over your lifetime.
- Single Without Dependents – Since CPP survivor benefits mainly help spouses, single Canadians may prefer to start CPP early.
Why Waiting Until Age 65 Is Still the Standard
For most Canadians, CPP at 65 is the middle ground. It balances monthly income with longevity. You also become eligible for OAS and GIS at 65, making it easier to plan your full retirement budget.
Advantages of Deferring CPP Until Age 70
- Higher Monthly Payments – A 42% increase makes CPP at 70 especially valuable for healthy retirees who expect to live into their late 80s or beyond.
- Protection Against Outliving Savings – Larger guaranteed income reduces reliance on personal savings.
- Tax Planning Opportunities – Delaying CPP while drawing on RRSPs or other savings can lower overall taxes in some cases.
Lifetime Value: CPP at Age 60 vs. CPP at 65 vs. CPP at 70
If you live to different ages, here’s the approximate total CPP collected:
| Age at Death | CPP at 60 (Start $810/mo) | CPP at 65 (Start $1,270/mo) | CPP at 70 (Start $1,800/mo) |
|---|---|---|---|
| 75 | $145,800 | $152,400 | $108,000 |
| 80 | $194,400 | $213,600 | $172,800 |
| 85 | $243,000 | $274,800 | $237,600 |
| 90 | $291,600 | $336,000 | $302,400 |
This table shows why CPP at 60 vs. CPP at 65 vs. CPP at 70 is not a simple decision. If you live longer, delaying increases lifetime benefits. If health is a concern, taking CPP early provides more security.
Final Takeaway
The choice between CPP at age 60, CPP at age 65, and CPP at age 70 depends on your health, financial needs, tax situation, and retirement goals.
- CPP at 60: Best for those who need income now or have shorter life expectancy.
- CPP at 65: The standard and balanced choice for most Canadians.
- CPP at 70: Best for those in good health who want to maximize guaranteed income.
Before deciding, review your CPP statement of contributions on canada.ca and consider speaking with a retirement planner to align CPP timing with OAS, GIS, RRSPs, and other retirement income.