Top 8 Reasons to Take CPP at Age 60 | Canadian Retirement Benefits

About this Video

• Video Title: Top 8 Reasons to Take CPP at Age 60 | Canadian Retirement Benefits
• Channel: Well Built Wealth
• Speakers: Reese
• Duration: 11:14

Introduction

This video explores eight common reasons why Canadians choose to begin receiving their Canada Pension Plan (CPP) benefits at age 60, the earliest possible age. While generally advising against early CPP withdrawal, the speaker acknowledges situations where it might be advantageous and explains the potential financial implications.

Key Takeaways

1. Financial Need: Taking CPP early may be necessary to cover immediate expenses or allow for early retirement from an undesirable job.
2. Reduced Life Expectancy: If life expectancy is significantly shortened, receiving a reduced CPP benefit is preferable to receiving none.
3. GIS Eligibility: Early CPP withdrawal can help maintain a low income to qualify for the Guaranteed Income Supplement (GIS) upon reaching 65.
4. Investment Strategy: Some individuals prefer receiving CPP early to invest the funds and potentially earn higher returns, though this strategy carries risk.
5. OAS Clawback Avoidance: Taking CPP early might help keep overall retirement income below the threshold for Old Age Security (OAS) clawbacks.
6. Market Volatility: During periods of market turmoil, accessing CPP may be a safer alternative to relying solely on potentially volatile investments.
7. Low-Income History: Individuals with many low-income years in their work history might benefit from taking CPP early to mitigate the impact of those years on their overall benefit calculation.
8. Distrust of Government: Some individuals withdraw CPP early due to concerns about the long-term stability of government programs.