How CPP Early and Late Adjustments Work
The standard CPP start age is 65, but you can take it as early as 60 or as late as 70. Starting early reduces your pension by 0.6% per month before 65 — that's a 36% permanent cut if you start at 60. Waiting past 65 increases it by 0.7% per month — a 42% bonus at 70.
These adjustments are permanent and inflation-indexed. Once set, your pension keeps up with CPI increases, but the early/late adjustment stays locked in forever.
| Start Age | Adjustment | Monthly (est.) | Annual (est.) |
|---|---|---|---|
| 60 | −36% | $873 | $10,476 |
| 62 | −21.6% | $1,069 | $12,831 |
| 65 | 0% | $1,364 | $16,368 |
| 67 | +16.8% | $1,593 | $19,118 |
| 70 | +42% | $1,937 | $23,242 |
Based on 2026 maximum CPP at age 65. Your actual amount depends on your contribution history.
Key Pros and Cons
Reasons to Delay
- • 42% permanent increase (at 70)
- • Best financial move if you live past ~78
- • Acts as longevity insurance
- • Reduces "sequence of returns" risk
Reasons to Start Early
- • Cash flow needs if you stop working at 60
- • Health concerns that limit life expectancy
- • Want to invest the CPP income instead
- • Need to preserve RRSP/TFSA during early years
Using the SimRetire CPP Breakeven Calculator
Our calculator shows you the crossover ages — the exact point where delaying "catches up" to the cumulative amount you'd have received by starting earlier. You enter your estimated CPP amount at 65, and it calculates cumulative totals for ages 60, 65, and 70 side by side.
Example: Starting CPP at 60 vs 70
If your CPP at 65 would be $1,000/month, here's the comparison:
- At 60: $640/month. By age 70, you've collected $76,800. By age 80, $153,600.
- At 70: $1,420/month. By age 70, you've collected $0. By age 80, $170,400.
The crossover point is around age 78. After that, the delay scenario pulls ahead and the gap keeps growing. By age 90, delaying has earned $52,800 more.
Frequently Asked Questions
What is the CPP breakeven age?
The breakeven age between starting at 60 vs 65 is typically around age 74. Between 65 and 70, it's around age 78. Our calculator gives you the exact number based on your personal CPP estimate.
Can I work and collect CPP at the same time?
Yes. If you're under 65, you must continue contributing to CPP while working (which builds your Post-Retirement Benefit). After 65, contributing is optional. The PRB is a small additional pension paid on top of your regular CPP.
Does the CPP breakeven change with inflation?
No, because both the early and late amounts are indexed to inflation equally. The breakeven age stays roughly the same regardless of future CPI. The real variable is how long you live.
SimRetire Editorial Team
Canadian Retirement Experts
This guide has been rigorously reviewed by our editorial team to ensure 100% compliance with 2026 Canadian tax laws and CRA guidelines. Our mission is to provide accurate, independent, and accessible financial education for all Canadians.