2. Decide when to apply for CPP retirement benefits

Most people apply to get their Canada Pension Plan (CPP) retirement pension at age 65. But depending on your financial situation, you may want to apply earlier or later. For example, if you need the money before you turn 65, you can apply to get CPP benefits after you turn 60.

Getting your pension earlier than 65

If you decide to get your CPP retirement pension before you're 65, you'll get a lower amount each month. For each month you start early, you get 0.6% less than you would have if you'd started at 65.

This means your total CPP retirement pension would be 36% less if you started getting it at 60 instead of 65. This is the same as 0.6% less each month for 60 months.

If you’re getting social assistance

Usually, if you're getting benefits from Ontario Works (OW) or the Ontario Disability Support Program (ODSP), it's not a good idea to get your CPP retirement pension early. This is because for each dollar you get from your CPP retirement pension, OW or ODSP takes a dollar from your benefits.

And, when you turn 65 and can no longer get OW or ODSP, you'll be stuck with a lower CPP retirement pension each month. 

If you have a disability

If you're under age 65 and can no longer work because of a disability, think about applying for the Canada Pension Plan (CPP) disability benefits instead of an early CPP retirement pension. If you're approved for CPP disability benefits, you'll almost always get more than you would from a CPP retirement pension.

And once you turn 65, a CPP disability pension automatically switches to a CPP retirement pension. You don't have to apply for your CPP retirement pension.

Getting your pension later than 65

If you delay getting your CPP retirement pension, you'll get a higher amount each month when you do start. For each month you delay after 65, you get 0.7% more than you would have if you'd started at 65.

This means your total CPP retirement pension would be 42% more if you start getting it at 70 instead of 65. This is the same as 0.7% more each month for 60 months.

Comparing the amounts you’d get at different ages

If your CPP retirement pension would be $600 a month if you took it at 65, the chart below shows what it would be if you took it when you were 60 or 70.