The CPP you receive at age 60 depends on a number of factors. The maximum you can receive, if you turn age 60 2022 is $802.30 per month.
Applying for CPP or Canada Pension Plan
Based on Statistics Canada, the average retirement age of the Canadians is 64.5. The ideal age to start receiving CPP pension is when you turn 65. You may continue to contribute into CPP until age 71 after which you must start taking out the money. Although the ideal age to start CPP benefit is 65, the minimum age is 60.
Reasons for starting CPP at age 60
- If you are in short of cash
- Health reasons
- If you have stopped working
- If you have planned to travel after age 60
- For better investments – You can invest the funds held within TFSA or RRSP in shares, ETFs, mutual funds and you have the chance to earn better returns. So, you may consider drawing from CPP, first.
How much CPP will I get at 60?
The general rule is that if you start receiving CPP benefits by age 60 instead of age 65, then you will get a reduced benefit. The benefit is reduced by 0.60% every month before your 65th birthday month. There is generally 60 months in between, so there will be a reduction of 36% in total (0.60*60 months).
The maximum one can receive at age 65 in 2022 is $1,253.59, so the maximum you can receive at age 60 will be 36% lesser, which is 64% of $1,253.59 and the figure is $802.30 per month or $9,627.57 per annum.
Based on the recent statistics, the average CPP benefit received by the Canadians is $727.61 per month. So, an average you might be qualified for is $465.67 per month (64% of $727.61) or $5,588.04 per annum.
CPP Benefits at age 60
The CPP benefit that each person receives is a unique number and it depends on when they start taking out the benefits, how long they have contributed, how much they have contributed and their average earnings.
So, we cannot determine how much you will receive exactly when you apply to receive CPP benefits at age 60.