How much is CPP reduced if I take it at 60?

Taking CPP before age 65 reduces your payment by 0.6% for every month you start early. At age 60 - the earliest possible - that is 60 months early, so your payment is permanently reduced by 36%. If your standard age-65 CPP would be $1,000/month, you would receive $640/month starting at 60.

How much more do I get if I delay CPP to 70?

Delaying CPP past age 65 increases your payment by 0.7% for every month you wait, up to age 70. That is 60 months × 0.7% = 42% more than the age-65 amount. A $1,000/month age-65 CPP becomes $1,420/month if you wait until 70.

What is the CPP break-even age if I take it at 60 vs 65?

If you take CPP at 60 instead of 65, you receive more total lifetime payments early on but smaller monthly amounts. The break-even point - where total lifetime payments from both strategies equal each other - is approximately age 74 to 75. If you expect to live past that age, waiting until 65 pays more in total.

What is the CPP break-even age for delaying to 70 vs taking at 65?

The break-even between taking CPP at 65 versus waiting until 70 is approximately age 82 to 83. Given that a 65-year-old Canadian has an average life expectancy well past 82, delaying to 70 is mathematically advantageous for the majority of healthy retirees.

Can I collect CPP and still work?

Yes. Since 2012, you can collect CPP retirement benefits while still working. If you are under 70 and continue working while collecting, you and your employer continue to pay CPP contributions, which increase your Post-Retirement Benefit (PRB) and add to your total CPP income.

Does delaying CPP affect OAS?

CPP and OAS are separate programs. OAS begins at 65 by default (or can be delayed to 70 for a 0.6%/month increase). You can take CPP at any age from 60 to 70 without affecting when you take OAS. However, both affect your overall retirement income and any OAS clawback threshold.

Home/Blog/When to Take CPP: Age 60, 65 or 70? The Break-Even Math for Canadians

RetirementMay 23, 2026·9 min read

When to Take CPP: Age 60, 65 or 70? The Break-Even Math for Canadians

Taking CPP at 60 gives you 36% less for life. Waiting to 70 gives you 42% more. We break down the break-even ages, OAS coordination, and who wins at each start date - with real dollar examples for 2026.

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Run the numbers yourself

CPP & OAS Timing Calculator - find your break-even

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The decision of when to start your Canada Pension Plan (CPP) is one of the most consequential financial choices you will make in retirement. You can start as early as age 60 (with a permanent 36% reduction) or as late as age 70 (with a permanent 42% increase). The difference between the two extremes is nearly double the monthly payment for the rest of your life.

This guide breaks down the exact math for each start age, calculates the break-even points, and helps you decide which option fits your situation. Use our free CPP & OAS timing calculator to model your specific numbers.

CPP Adjustment Rates at a Glance (2026)

Start Age	Adjustment vs Age 65	Monthly Payment (if $1,000 at 65)
60	−36% (−0.6%/month × 60)	$640
61	−28.8%	$712
62	−21.6%	$784
63	−14.4%	$856
64	−7.2%	$928
65	Standard amount	$1,000
66	+8.4%	$1,084
67	+16.8%	$1,168
68	+25.2%	$1,252
69	+33.6%	$1,336
70	+42% (+0.7%/month × 60)	$1,420

The 2026 maximum CPP retirement pension at age 65 is $1,364.60/month for someone who contributed the maximum throughout their career. Most Canadians receive approximately 60–70% of the maximum, so using your own Statement of Contributions from Service Canada is the most accurate way to model your numbers.

Break-Even Analysis: Age 60 vs Age 65

Taking CPP at 60 means you receive five extra years of payments, but each cheque is 36% smaller. At some age, the larger age-65 payments catch up and surpass the total received from starting early. That crossover is the break-even point.

Age	Total received starting at 60 ($640/mo)	Total received starting at 65 ($1,000/mo)
65	$38,400	$0
70	$76,800	$60,000
74	$107,520	$108,000
75	$115,200	$120,000
80	$153,600	$180,000
85	$192,000	$240,000

Break-even at approximately age 74–75. If you expect to live past 75, waiting until 65 puts more money in your pocket over your lifetime.

Break-Even Analysis: Age 65 vs Age 70

Delaying from 65 to 70 costs you five years of $1,000/month payments ($60,000 foregone), but earns you $420/month more forever.

Age	Total received starting at 65 ($1,000/mo)	Total received starting at 70 ($1,420/mo)
70	$60,000	$0
75	$120,000	$85,200
80	$180,000	$170,400
82	$204,000	$204,480
85	$240,000	$255,600
90	$300,000	$340,800

Break-even at approximately age 82–83. A 65-year-old Canadian male has an average life expectancy of about 84; females about 87. Most healthy retirees will live past the break-even point, making delay a mathematically sound strategy.

Who Should Take CPP Early (Age 60–64)?

Early CPP makes sense in these situations:

Poor health or shortened life expectancy - if you have reason to believe you will not live past your mid-70s, taking earlier maximizes total lifetime income
Immediate income need - you need the income now and have no other source; the alternative would be drawing down savings at a high rate
High-return investment opportunity - if you can invest CPP income at returns significantly exceeding 5–6% annually, early collection may produce more wealth (though this requires discipline)
Spouse has a large CPP - if your spouse's CPP will cover most retirement expenses, getting your smaller CPP early is less costly

Who Should Delay CPP to 70?

Good health and family longevity - if you and your family regularly live into your late 80s or 90s, the 42% boost pays off significantly
Longevity insurance - CPP is a guaranteed, inflation-indexed annuity. More of it reduces the risk of outliving your savings
OAS clawback concern - delaying CPP and using RRSP/RRIF withdrawals earlier can smooth income and reduce future OAS clawback
You are still working - if you're working past 65, you likely don't need CPP immediately, and Post-Retirement Benefits from continued contributions further increase your eventual amount

How OAS Fits In

Old Age Security (OAS) is a separate federal pension that begins at 65 by default. Like CPP, you can delay OAS up to age 70 for a 0.6%/month (36% maximum) increase. In 2026, the maximum OAS at 65 is approximately $727/month. Once you reach age 75, the government automatically adds a permanent 10% top-up to your OAS payment - no application required.

OAS has an income clawback: if your net income exceeds $95,323 (2026 threshold), OAS is clawed back at 15 cents per dollar of excess income. If your retirement income from CPP, RRIF, and other sources will be high, factoring OAS clawback into your CPP timing decision is important.

Use our OAS clawback calculator to see whether your income level puts your OAS at risk - and by how much.

The CPP Enhancement: Why Your Amount May Be Higher Than Expected

Since 2019, CPP has been undergoing a multi-year enhancement. Workers who contributed during the enhancement period (2019–2025) will receive a higher CPP than previous generations. By 2025, the CPP enhancement is fully phased in, meaning the target replacement rate rises from 25% to 33.33% of covered earnings.

If you have been working and contributing to CPP from 2019 through 2026, your projected CPP will be meaningfully higher than older estimates or statements from before 2019. Check your My Service Canada Account for your current CPP Statement of Contributions, which reflects the enhancement.

Use Our CPP & OAS Calculator to Find Your Break-Even

Our free CPP & OAS timing calculator lets you enter your actual projected CPP amount (from your Service Canada statement) and runs the break-even math instantly for all start ages from 60 to 70. It also models combined CPP + OAS income and shows you the total lifetime value of each strategy based on your expected longevity.

Enter your projected age-65 CPP amount from your Service Canada statement
Set your planned start age (or let the tool compare all ages side by side)
Enter your life expectancy or compare multiple longevity scenarios
See total lifetime payments for each strategy - and exactly when the break-even occurs

Put the numbers to work

Run your own numbers with our free Canadian-tax-aware calculator.

Open CPP & OAS Timing Calculator - find your break-even →