The Secret Reason To Start CPP Benefits At Age 70

Start your retirement plan! https://adviice.ca/?utm_source=youtube&utm_medium=video&utm_campaign=secret-reason-to-delay-cpp Don't have a detailed retirement plan yet? Build your retirement plan using our AI Strategies for just $9/month. This includes a comprehensive 30-day email/video course with detailed instructions. --- Canada Pension Plan or CPP is an important part of many people’s retirement plans. The base CPP benefit was meant to replace 25% of your pre retirement income up to the Years Maximum Pensionable Earnings or YMPE. The new enhanced CPP benefit goes even further and is meant to replace 33% of your pre retirement income. One of the big decisions around Canada Pension Plan in retirement is when to start your benefit. You can start as early as age 60 with a penalty of -36%. Or you can start as late as age 70 with a deferral bonus of +42% There are many reasons to start CPP early. There are many reasons to start CPP later. But there is one reason in particular that doesn’t get mentioned much at all. It’s related to how your CPP benefit is calculated and it can provide an extra incentive to delay your CPP benefit. So if you thought the 42% increase was good, then this will make it even better. To understand why this is, it’s important to understand how CPP works, specifically how your benefit increases over time, because there are two important mechanisms at work, and it depends on if you’ve started your CPP benefit or not. --- Disclaimer: This video is for educational purposes only and does not constitute investment advice or financial advice. All information provided is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions. Every effort has been made to ensure the accuracy of its contents. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations provided. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or recommendation, to buy or sell any financial product or securities. Before making any financial decision, you should review your situation with a financial planner.