More About CPP

Discover the Value of Making the Right Decision


The Canada Pension Plan, commonly known as CPP, is a program operated by the federal government which gives a pension to Canadians who paid into the program while they were working. CPP payments you receive are taxed by both the federal and provincial governments just as if they were regular income.

The annual benefit you receive depends on how much you contributed, how long you contributed, and your individual start date. For couples choosing the wrong start date can leave a surviving spouse with significantly less income than they deserve.

Conventional wisdom has always been to take CPP as soon as possible to “ensure” you get your money. However the rules of the game have changed. The penalties for starting early (up to 60 months before age 65) have increased and the government now offers a bonus for deferral (up to 60 months past age 65). Widow’s and widower’s may also receive a Survivor’s Benefit that can be significantly impacted by the bonuses and penalties associated with the date they and their deceased spouse started their CPP benefits.

Let us help you determine the optimal time for you to withdraw from your CPP, based on your own personal situation.  Your optimal start date can be the difference of several Hundred Thousand Dollars to your lifetime retirement income.

Full details about the Canada Pension Plan are available from Service Canada

Optimize Your CPP

Emeritus Financial