June 17, 2020
Author: The Link Between
Have you ever wondered what the net impact would be on your CPP Benefits depending on when you choose to start withdrawing?
The CPP (or Canadian Pension Plan) allows you to start taking your pension benefits as early as aged 60, or as late as age 70. The earlier you choose to start your payments however, the smaller the payments will be, and regardless of when you start, they will continue for the rest of your life.
As a result, the longer you expect to live, the more benefit there is to starting your CPP benefits later. In fact, depending on a number of factors, there’s a specific break-even age between taking your CPP earlier vs later.
Try out this simple calculator to compare the impact on your pension.
** Please note
Calculations use an annual CPP benefit of $10,834. This is 75.00% of the maximum benefit of $14,445 as of January 2021. CPP benefits are indexed to an inflation rate of 2.00%. Calculations assume the annual benefit is paid at the end of the year. All calculations are done on a before-tax basis.
This calculator is for educational purposes only. All charts and illustrations are for illustrative purposes only and are not intended to illustrate the performance of any security or portfolio. You should not rely on the results as an indication of your financial needs and we recommend that you seek your own financial, investment, tax, legal or accounting advice nor shall the information herein be considered as investment advice or as a recommendation to enter into any transaction. Professional advice should be obtained prior to acting on the basis of this information. The deduction of advisory fees, brokerage or other commissions and any other expenses that would have been paid may not be reflected in the calculation results.©Copyright 2021 Ativa Interactive Corp. All rights reserved. Powered by Ativa.com.