![]() The question is how many months does Janet need to collect more pension than Beth to make up the $37,800 Beth is ahead? It will take Janet 140 months to make up the $37,800 at $270 per month. That being said, Janet is now going to get $900 per month for CPP or $270 per month more than Beth’s $630. In other words, Beth has made $37,800 before Janet has collected a single CPP cheque. Over the last 5 years, Beth has collected $630 per month totalling $37,800. Thus Beth’s CPP will be reduced by 30% (0.5% x 60 months) for a monthly income of $630 starting on her 60th birthday. Under Canada Pension Plan benefits, Beth can take CPP at age 60 based on a reduction factor of 0.5% for each month prior to her 65th birthday. Let’s further assume, that Beth decides to take CPP now at age 60 at a reduced amount while Janet decides she wants to wait till 65 because she will get more income by deferring the income for 5 years. Let’s assume they both qualify for the same CPP of $900 per month at age 65. To evaluate these, let’s introduce you to twins, Janet and Beth. That being said, you can take CPP as early as age 60 and as late as age 70. Should I take CPP early?Ĭanada Pension Plan is normally taken at age 65. To learn more about this you can read my recent article, How much will you get from Canada Pension Plan in Retirement? 2. Add in the trend that more and more people are retiring before the age of 65 and taking CPP early, you are seeing more and more people get less than the maximum amount. It’s not easy to qualify for the maximum CPP because you have to contribute full rates for 40 years between the age of 18 and 65. That being said, most people do not qualify for the maximum CPP so it is best that you call Service Canada at 1-80 and ask for your Canada Pension Plan statement of contributions. The maximum CPP amount for 2010 is $934.17 per month starting at age 65. How much will I get from Canada Pension Plan? In this article, I would like to tackle the four most common questions I get surrounding CPP 1. In the past, some of my most popular articles have been the ones I have written about Canada Pension Plan (CPP).
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