10/03/2026
Most people spend more time planning a two-week vacation than deciding when to take CPP, even though that decision can affect their retirement income for the rest of their life.
You turn 60 and someone says:
โTake CPP now. You never know what will happen.โ
Sounds reasonable. But retirement planning isnโt that simple.
Timing matters.
Take CPP before 65, and your monthly benefit is permanently reduced. Delay it to 70, and your CPP can be up to 42% higher than at 65.
OAS normally starts at 65, but it can also be delayed to age 70 for up to 36% more.
Then thereโs your RRSP.
By the end of the year you turn 71, your RRSP must be converted to a RRIF, used to purchase an annuity, or withdrawn. RRIF minimum withdrawals generally begin the following year.
And this is where retirement planning gets interesting:
These decisions donโt happen in isolation.
If you take CPP early but leave a large RRSP untouched, that RRSP may continue growing and eventually create larger taxable RRIF withdrawals.
More taxable income later could also mean paying more taxโand potentially triggering the OAS recovery tax.
Think of retirement as a timeline:
60 โ CPP becomes available
65 โ Standard CPP age + OAS eligibility
70 โ Maximum CPP & OAS deferral
71 โ RRSP conversion deadline
72 โ RRIF minimum withdrawals generally begin
75 โ OAS receives an additional 10% age-based increase
There is no single โbest ageโ that works for everyone.
For some people, taking CPP early may make sense. For others, delaying CPP while strategically drawing down RRSP assets may create a better retirement income mix.
The important part is having a plan that considers CPP, OAS, RRSP/RRIF, TFSA, taxes and your overall cash-flow needs together.
Retirement planning isnโt just about how much money you have.
Itโs also about when you take it, where you take it from, and how much you actually keep after tax.
Before choosing your CPP start date, build the retirement income plan first.
