When Should You Take CPP? What Actually Matters

Now that you understand how CPP works…

Let’s talk about the real question:

When should you take it?

Because this decision is not just about math.

It’s about your life.

Most Women Will Live Longer Than They Think

The average life expectancy for a Canadian woman is around 84–85 years old.

But that’s just the average.

If you’ve made it to your 60s in good health, there’s a very real chance you live into your late 80s or even your 90s.

Which means:

You could be funding 25–30 years of retirement.

And that changes how we think about CPP.

CPP as Longevity Insurance

One of the most powerful ways to think about CPP is this:

It’s guaranteed, inflation-adjusted income for life.

So when you delay CPP, what you’re really doing is:

Locking in a higher level of income for the later years of your life.

For many of the women I work with, this becomes less about maximizing dollars…

And more about creating stability. 

But There’s Another Side to This

And it’s just as important.

If you take CPP at 60 instead of 70, you’re getting significantly less per month later…

But you are getting money earlier.

Let’s use rough numbers again.

If your CPP at 65 is $1,400/month:

• At 60 → about $896/month
• That’s roughly $10,700 per year
• Over 10 years (60–70), that’s about $100,000 received earlier

That’s not insignificant.

Your “Go-Go Years” Matter

Your 60s are often the most active years of retirement.

You’re:

• Healthier
• More mobile
• More likely to travel
• More likely to spend

So the question becomes:

What is the value of having that money earlier, when you’re more likely to use it?

Because while delaying CPP may give you more later…

Those earlier years matter too.

Income and Taxes Matter

If you’re still working in your 60s and earning a strong income:

Taking CPP early can create unnecessary tax.

You may end up keeping less of it than you expect.

On the flip side:

If your income is lower, taking CPP earlier may make more sense.

Your Retirement Plan Matters

CPP is not a standalone decision.

It needs to fit with:

• Your investment portfolio
• Your withdrawal strategy
• Any pensions or other income

Sometimes it makes sense to:

Draw from your investments earlier
→ so you can delay CPP
→ and lock in higher guaranteed income later

Other times, the opposite is true.

So… What’s the Right Answer?

There isn’t one.

The right decision depends on:

• Your health and longevity
• Your income and tax situation
• Your assets
• Your comfort with risk
• Your goals

For some people, delaying CPP creates more long-term security.

For others, taking it earlier improves quality of life in those early retirement years.

The Bottom Line

This isn’t just a math decision.

It’s a planning decision.

And the right answer comes from looking at your full financial picture, not just one piece of it.

Want Help Figuring It Out?

This is exactly the type of decision we map out in a retirement plan.

If you want clarity on when to take CPP and how it fits into your overall strategy, you can book a call to explore working together: Exploratory Session