Ray Hoger | Chair , Pension & Financial Wellness Committee , ARTA

At a Christmas party in 2022 , I was called a fool — told I was crazy and generally ridiculed by a retired stockbroker . What began as a friendly , get-acquainted conversation became one of those “ my opinion is better than your opinion ” dialogues . The topic of the night : when to take your Canada Pension Plan ( CPP ).

Many people and some financial advisors advocate taking CPP as early as possible , at age 60 . Others suggest age 65 , while still others suggest waiting beyond 65 — age 70 is the latest you can wait . Let ’ s toss a few facts into this opinion-heavy discussion .

● Starting CPP early will lower payments by 0.6 % each month ( 7.2 % per year ), up to a maximum reduction of 36 % if you start at age 60 .

● Starting after age 65 , payments will increase by 0.7 % each month ( 8.4 % per year ), up to a maximum increase of 42 % if you start at age 70 . You can choose any time between the ages of 60 and 70 .

● In 2022 , the maximum monthly amount you could receive at age 65 was $ 1,253.59 . The average monthly amount at age 65 was $ 737.88 .

● To receive that maximum monthly amount , you must have contributed to the plan for at least 39 years , and in each of those years paid the maximum CPP amount payable ( the amount changes each year , based on inflation ). Starting CPP early , or not having the 39-year maximum contribution level , leads to lower average payments . Keep in mind that many life experiences can affect this calculation , such as child rearing , disability , and divorce . Allowances are made for these challenges , so be sure to check the Government of Canada services website for your circumstance .

● According to the National Institute on Ageing , fewer than one per cent of Canadians delay CPP benefits to age 70 . In the last decade , many have chosen to start as early as possible , ignoring the long-term financial effects .

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