You can go online via your CRA account to determine what your approximate benefit will be -- you can see the difference it makes to take it at 60, 65, etc.
You may be wondering how much your benefit increases when you postpone your CPP payment. Individuals can choose to defer CPP/QPP up to age 70 in order to receive an increase in benefits equivalent to 0.7% per month, or 8.4% per year.
It is often a hard decision for people to decide on when to elect to draw their CPP. Many people believe in the rule of "we don't know how long we'll live" so we may as well benefit from it now. You also may enjoy having this payment in the earlier years when you are travelling and spending more money. If you start drawing before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36% if you start at age 60.
What other factors should you consider when taking CPP?
Do you plan to continue doing contract work in retirement? You could consider postponing your CPP, OR you can start taking it and depositing it back to your RRSP. If you continue to pay into CPP while you do contract work, it will also increase your CPP benefit.
Will taking it early at age 60 drastically impact you versus waiting until age 65? Make a budget to determine what kind of income you need in retirement to have the lifestyle you expect.
Some people feel they can no longer fathom going into the office anymore and they need to retire as soon as possible. Taking CPP will definitely be a good option to give you the extra boost in income to be able to retire in some cases.
Your CPP does pass onto your spouse if you pass away, but they can never get more than the maximum - as indicated above it is currently $1,387/month. The CPP you have paid into doesn't continue on to your children, etc. If you postpone CPP and don't have a spouse, your CPP dies with you. This makes many people inclined to start taking it as early as possible.
As mentioned above, we never know how long we are going to live. Many people consider their families genes and longevity when electing when to take CPP income.
There are many factors to consider when taking your CPP, this is why it is important to meet with your Financial Planner to discuss all of your options. There is no one size fits all when it comes to CPP and when to draw it.
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