Ep 165 - Why You Might Want to Take CPP at 60 (Even If the Math Says Otherwise)
When it comes to CPP timing, the math often says “wait until 70” - but life isn’t lived in a spreadsheet. In this episode, Joe Curry explores why taking your Canada Pension Plan early—sometimes even at 60—can be a smart, meaningful choice for your lifestyle, legacy, and peace of mind.
Key Takeaways
CPP timing isn’t just about math — it’s about meaning. The “optimal” financial choice may not be the one that helps you live your best retirement.
Taking CPP early can increase flexibility. Early benefits can fund experiences, family gifts, or charitable giving when you’re healthiest and most active.
Zero-earning years can reduce your benefit. If you retire before 65 but delay CPP, those years may count against you in the CPP calculation.
Not everyone needs longevity insurance. If you have pensions, rental income, or sufficient savings, delaying CPP might not be worth the trade-off.
Behavioral comfort matters. If you’re hesitant to draw from investments, that monthly CPP cheque might help you enjoy your retirement more freely.
Insights Worth Sharing
“I’ve never seen an obituary that praised someone for waiting until 70 to start their CPP.”
“The best financial plan isn’t the one that leaves you richest at 95. It’s the one that lets you live the life you want now.”
“If you don’t need longevity insurance, taking CPP early can actually add more value to your life.”
“Great planning isn’t just about optimizing income — it’s about optimizing life.”
“Financial planning is about making smart decisions. Great planning is about making meaningful ones.”
Resources
Episode 157: How to Delay CPP to Age 70 Without Sacrificing Retirement Income
Episode 106: Understanding Your Retirement Income Personality for Success, with Wade Pfau
Matthews & Associates Retirement Planning Process
Should You Take CPP at 60?
Why Earlier Might Be Better Than “Optimal”
You’ve probably heard that delaying your Canada Pension Plan (CPP) until age 70 is a smart move. After all, the math shows your monthly benefit increases by about 122% between age 60 and 70. But as Joe Curry reminds us in this week’s episode of Your Retirement Planning Simplified, life isn’t a math problem — it’s about meaning.
“I’ve never seen an obituary that praised someone for waiting until 70 to start their CPP,” Joe says. What really matters are the adventures you take, the time spent with family, and the impact you make while you’re here. And for many Canadians, taking CPP early can support those goals.
The Case for Taking CPP Early
If you’re retiring around 60 and have strong savings or other income sources, the bigger cheque at 70 may not change your life. But an earlier CPP could create flexibility — letting you fund meaningful experiences now, help your kids or grandkids when they need it most, or even give more to causes you care about.
For those with a solid investment portfolio, defined benefit pension, or rental income, the concept of CPP as “longevity insurance” might not apply as strongly. If your financial security is already established, it’s okay to prioritize lifestyle over optimization.
The Hidden Math of Delaying
An important nuance that Joe highlights: if you retire early but delay CPP, the years between retirement and age 65 are treated as zero-earning years in the CPP formula — and that can reduce your benefit. So while delaying often makes sense on paper, it’s not always straightforward in practice.
Behavior and Peace of Mind
Many retirees struggle to spend down their investments, even when they can afford to. That makes a guaranteed monthly cheque like CPP psychologically valuable. If taking CPP early gives you permission to enjoy life — travel more, give more, live more — that can be the smarter financial choice.
At the end of the day, the goal isn’t to win the spreadsheet game. It’s to design a retirement that lets you live well, give generously, and find peace of mind. As Joe puts it, “Financial planning is about making smart decisions. Great planning is about making meaningful ones.”
Learn more about our retirement planning process at MatthewsAndAssociates.ca