Is it smart to take early CPP benefits?

So, if both people waited until they were 65 or older to collect, they both may have to live beyond 80 to break even, and in the event of one dying, the survivor may lose a large portion of the other person's entire CPP payment.

But, if both of you took the early CPP and earned less per month for longer, and one died, the survivor would collect up to the maximum amount anyways.

Unless both partners live well beyond age 80 it seems better to take the early pension and leave more of a nest egg for the other person.

Sorry, forgot to mention - When there are two people (a couple) both collecting CPP, and one of them dies, the surviving partner will only receive the maximum amount for ONE person.

Most new immigtants come to this country in the average age of 45 to 50. Due to hidden discrimination in this country, these people don't get uninterrupted job until they turn 65. Government wants 'head & tail' both to their side. There are 2 types of people who claim early CPP pension; one who have made enough money and want to relax and the second are those who have lost their jobs in their 60s and cannot find another job. If government wants to penalize for early CPP benefits by downsizing benefits, then government should ensure that all people get jobs as long as they want to work. Government should give option to commute 80% of pension so that people without job can live worry-free until 65 when old-age pension starts.
It is not a wise step to reduce benefits of those who withdraw early pension because of no other means of earning. If government cannot provide jobs according to incumbent's skills, then it should not penalize for early pension withdrawl. They should alternatively look all aspects and not function like Merchant of Venice. The people should get same pension as at age of 65 if not better for early withdrawl.

yes for a self employed individual with higher income is a win win situation. Consider that under the rules prior to 2010 you would save almost 4k each year in contributions, so in 5 years almost 20K, secondly the opportunity cost on the 35K you would collect from age 60-65 would be worth almost 100K by age 83 which is the approximate breakeven point based on those who wait until age 65 to collect. Crunch the numbers and you are better off to take it early in select situations. I goofed and waited until 64 whereas my accountant friends all took their cpp at age 60.

Not quite, Ernest. if you take CPP early and continue to work, then you and your employer will have to continue contributing to the CPP. For the self employed that means both ends so the 4K is still required.

If you’re still working past age 65 though, you have a choice. You can contribute to the CPP and earn extra pension benefits. Or you can stop making CPP contributions.

ITS NICE OF THE GOVERMENT TO PENALIZE US FOR WANTING TO RETIRE EARLY, WHILE THEY PAD THEIR HUGE RETIRMENT PACKAGES WITH OUR MONEY. PEOPLE MAYBE WORKING LATER IN LIFE, BUT ITS NOT BECAUSE THEY WANT TO. THEY HAVE TOO. IF THE GOVERMENT COULD ONLY MANAGE THE MONEY WE GIVE THEM, WE WOULDN'T BE IN THIS MESS. I HAVE ALWAYS STATED THAT IF WE GAVE THEM EVERY CENT WE MAKE, IT STILL WOULD NOT BE ENOUGH FOR THEM. EVERY TIME I READ ABOUT THE GOVERMENT FINDING NEW WAYS TO RAPE, PILAGE, EXTORT MONEY AWAY FROM US WORKING STIFFS, IT PISSES ME OF.

does this exclude those that have already taken earlier retirement? do they readjusted in 2012?

I sort of reached the end of the rope and had to retire just shortly after 55, after being in the work force 4 decades. In retrospect, if I could have lasted a year or two longer, I would have stayed, but there it is. I know my work pension is going to be reduced substantially at 65 due to "co-ordination of benefits",(ie, you get a reduction because you will making something similar from CPP--except that I won't) and I was going to be taking early CPP at 60 because, on the whole, I doubt that I'm a certainty to make really old bones, and some in the hand was going to better than more after 65. Trouble is, I'm not sick/disabled enough (yet) to qualify for for CPP disability, and I'm not well enough to work any more, so now I will just have less income to look forward to....

Observer obviously doesn't understand how our system works. CPP is a user-pay system, and i'm glad it is. I'm sick of all those that feel they should be entitled to everything without contributing towards it. The system may not be perfect, but I think it's good. If it's better for you to stay in your home country, you have that option. I'm not quite sure how someone thinks that a government can support all of it's people, when they don't contribute to the economy. You have options, if you don't like what we have to offer do something about it, or stop complaining. How do you expect the governement to ensure everyone has a job? Would you prefer to live in a Communist country? You want to be able to commute your pension so that you can return home? Or so that you can spend it all, and then fall back into the governement system to receive more support?

why do refugees and immigrants who never worked and never paid any taxes get more benefits than people who worked and paid taxes

I am also an immigrant who happens to agree with Mr. parker, and also wanders about the same question Mr. Caguin has, although the later comment does not make much sense to me since "non-working retired" receipients I think get less benefits than "working" ones. I came here at age 19 and have worked ever since, I'm now in my 40s. I have older friends however that I know have been on the system most of their entire time they have lived in Canada and are now collecting pensions; but really never contributed enough, in my opinion, to deserve anything more than the absolute minimum to help them get by in life since they either by choice or any other circunstance did not pay enough into the plan.

almost there, not so, the year in which I applied 2007 when I was 64 I made a prorated contribution and the next year even though I continued my self employment I did not make the contribution so in fact I saved the 4k that year. It is my understanding that the new rules require you to make the contribution .

What the government should do is to level-up the entitlement of retirees who, for some reasons beyond their control, have to collect the CPP pension at the minimum retirement age of 60. To be fair, why should a 60 year old retiree BE PUNISHED for life for collecting their pension at age 60? The pension entitlement should have been indexed every year as it approaced the 65 year full retirement benefits. 5 or more years of being penalized and DEPRIVED of the full benefit is worse enough for those who have no other source of income. Now, if this amendment is implemented, those who collected their pension at age 60 will further be penalized to an even lower percentage. The nagging question on "WHO will pay for all of these" is a scare tactic question! The working populaltion of Canada is INCREASING, NOT DECREASING as most pundits would like to scare retirees to beleive in this country! It is the government's prime RESPONSIBILTY to create and provide jobs for its citizens in order to maintain the sustainability of the pension plan. Do not shift the blame on the retirees! It is true there would be an increasing number of people retiring, but there would also be many workers who will be in the work force to replace them. They would sustain the system the same way we did for the older generation of retired workers, and so on and so forth.

For those who do not understand why some, if not most, retirees have to go back to their former country is simply because the pension they are receiving here in Canada cannot sustain them in the high cost of living all over the country! If one does not own a home, rent on the average is way way up more than the possible pensions a retiree has to receive every month. Unless a retiree has to abandon personal necessities such food and shelter, as well, there is no way most retirees can survive the humongous bills they have to face and pay every month!

Most, if not all people here in Canada are immigrants. Only "natives" such as Indians and Inuits are considered "aboriginals" although history tells us, they too came from somewher else, not North America!

Work and taxes are not the measure from which one should be receiving pensions here in Canada. The government has guidlines and if one is qualified under those guidelines, then one is entitled to receive them.

CPP is a pay as you go plan. Doresn't matter where you came from but it does matter when you started. If you were there in the beginning, you conributd based on 25% of your income (up to limit) and will receive the pension for as long as you live. If later start .. fewer contributions .. lower pension. Let's compare: If both of us live to 80 but you collect for five more years (80-60 v. 80-65) is it not reasonable that you receive a smaller amount each month to even things off? That's really what's happening here.

I agree with 'almost there', and 'Ford' I understand how we all got here. I was using the term losely, and referring to those that haven't been here for the time required to contribute to CPP long enough to be entitled to the Maximum CPP amounts at retirement. It only makes sense that someone that collects at age 60 receives a lesser amount than someone that waits until later to collect.

Many of you may want to read this:

http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/oca/reports/CPP/cpp24_e.pdf

as well as spend a little time understanding how the CPP program works.

What about all the ones who lost there jobs HERE IN CANADA AND IN THE US and also there Pensions!!!!..does anyone still believe that this system of Goverment is really for the Citizens well being?One generation after another of fools still continue to believe this lie!! Our children are not protected in a National Economic Security Plan but for a rather obvious GLOBAL exploitation of transferring it's Tax's payers hard earned Wealth to be distributed among the Developing Countries involved.The problem is that the wealth created, which if well managed should of quaranteed our 'PENSIONS and our own Children's nest egg .If you think for a moment on everything economic thus far will from now on be ROSEY and we will weather the storm and recover..... is a fool again. The truth is not to trust no one and VOTE for the security of your children and not the parasites that are running our GOVERMENT and lies and misconceptions they SOW .Enough IS Enough

I was shown the exit door soon as my manager found out that I've reached the pensionable years!
Now it is very difficult to find any P/T jobs. Retirees like me have to compete with the younger
job aspirant! My CANADIAN job experience means nothing and seems irrelevant nowadays!
Should I or shouldn't I start withdrawing my CPP now at age 60?
Just look at the salaries of the head honchos running the CPP? Exhuberant salaries!
From 60 to 65... who's going to hire me now full time? As suggested by some to wait till age 65!
Is the gov't screwing the retirees? Something is fishy and a conspiracy to hold peoples money.

I don't agree at all. How much did those now able to receive CPP actually contribute? Those collecting CPP now and in the near future are actually being carried by the younger generation. CPP rates started in 1966 at 1.8% of YMPE with a Maximum annual amount of $79.20 contributed. Over the next 20 years the rate stayed at 1.8%, with the Maximum amount annual amount contributed in 1986 being $419.40. It wasn't until 2003 that the rate crept up to 4.95% of YMPE.

Add up how much you have contributed since you started working, and how much you are able to collect monthly, indexed, until the day you die. After you've done that, let me know if you don't like the return you've got.

Yes, the ought to be a law!!!!!!!!!!! CFA