Have your clients ever wondered what the net impact would be on their CPP Benefits depending on when they choose to start withdrawing?
The CPP (or Canadian Pension Plan) allows them to start taking their pension benefits as early as aged 60, or as late as age 70. The earlier they choose to start their payments however, the smaller the payments will be, and regardless of when they start they will continue for the rest of their lives.
As a result, the longer they expect to live, the more benefit there is to starting their CPP benefits later. In fact, depending on a number of factors, there’s a specific break-even age between taking their CPP earlier vs later.
Try out this simple calculator and share it with your clients so they can compare the impact on their pension.