What the start age does to your CPP payment
| Start age | Adjustment vs. age 65 | How it works |
|---|---|---|
| 60 | −36% | Reduced 0.6% for each month before 65 |
| 65 | Baseline | Standard retirement pension |
| 70 | +42% | Increased 0.7% for each month after 65 |
The adjustment is permanent and indexed — a bigger starting cheque stays bigger for life. Delaying pays off if you live past the break-even point (typically somewhere in your early 80s); starting early can make sense with health concerns, no bridge income, or when investing the money matters less than certainty.
OAS: deferral and the clawback
- OAS starts at 65 (it cannot be taken earlier) and can be deferred to 70, growing 0.6% per month — up to +36%.
- For July 2026–June 2027 payments, OAS is reduced by 15 cents per dollar of 2025 net income above $93,454, disappearing entirely at $152,062 (ages 65–74).
- For 2026 income (affecting payments from July 2027), the threshold rises to $95,323.
What most Canadians actually do
Despite the math favouring patience for healthy retirees, early take-up dominates: about 40% of Canadians in cohorts studied by Statistics Canada began CPP at 60, and fewer than 1% wait until 70. Meanwhile the average retirement age hit 65.4 in 2025 — a 20-year high — with private-sector workers retiring around 66 on average. The gap between when people stop working and when benefits start is exactly where planning earns its keep.
Frequently asked questions
Is it better to take CPP at 60 or 65?
It depends. At 60 you accept a permanent 36% reduction in exchange for five extra years of payments. If you expect a long retirement and can bridge the income gap, delaying usually pays more over a lifetime; if health or cash flow argue otherwise, early can be rational. Run the numbers for your case — ideally with tax included.
Does taking CPP early help avoid the OAS clawback?
Sometimes. A smaller CPP cheque means less taxable income later, but so does drawing down RRSPs before 65. The clawback is calculated on individual net income, so spousal splitting and withdrawal order both matter.
Can I take CPP while still working?
Yes — and if you're under 70 you (and your employer) generally keep contributing, which adds a post-retirement benefit to your pension.
Where do I check the current official numbers?
Thresholds and benefit rates are indexed and change annually. Verify current figures on canada.ca (Service Canada) before deciding.