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Most Canadians Take CPP at the Wrong Time (Here’s What It Really Costs)
In this episode of the Ask TMFG Podcast, Carlo Cansino and John Iaconetti break down one of the most misunderstood retirement decisions Canadians face: when to take CPP. They explain why many Canadians default to taking CPP at 60 without fully understanding the permanent impact on their lifetime income, and how that choice quietly reshapes the rest of their retirement plan.
Using a real-life style case study, they walk through the trade-offs between taking CPP at 60 versus waiting until 65, including the permanent reduction for early CPP, the long-term benefits of higher guaranteed income, and the often overlooked planning window between ages 60 and 65. This five-year gap can be used strategically for RRSP withdrawals, smoothing income, reducing future RRIF balances, and minimizing future tax pressure and OAS clawbacks.
They highlight CPP isn’t just a monthly payment, it’s an income lever that affects your taxes, portfolio withdrawals, and long-term financial stability. While early CPP can make sense in specific situations (such as immediate cash flow needs, health concerns, or protecting a portfolio during a market downturn), delaying CPP can provide stronger lifetime income, reduce reliance on investments later in retirement, and create a more resilient retirement plan.
There’s no one-size-fits-all answer to CPP timing. The “right” decision depends on longevity expectations, cash flow needs, and how CPP fits into your overall retirement strategy. What matters most isn’t simply when you take CPP, but how that decision integrates with your RRSPs, TFSAs, taxes, and long-term income plan.
👉 Watch the full video episode on YouTube to understand when taking CPP early actually makes sense, and when waiting can dramatically improve your retirement outcome: https://www.youtube.com/watch?v=LRrWdEcmKeQ
Question for our listeners:
Are you planning to take CPP at 60, 65, or later, and have you mapped out how that choice will affect your taxes and retirement income over the next 20–30 years?
If you’d like help modeling your CPP timing and stress-testing your retirement income plan, we’re offering a free portfolio analysis 👉 https://tmfg.ca/portfolio-analysis/
Follow us on our social channels:LinkedIn: The McClelland Financial Group
Facebook: https://www.facebook.com/tmfg.ca
Instagram: https://www.instagram.com/themcclellandfinancialgroup_
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By asktmfgIn this episode of the Ask TMFG Podcast, Carlo Cansino and John Iaconetti break down one of the most misunderstood retirement decisions Canadians face: when to take CPP. They explain why many Canadians default to taking CPP at 60 without fully understanding the permanent impact on their lifetime income, and how that choice quietly reshapes the rest of their retirement plan.
Using a real-life style case study, they walk through the trade-offs between taking CPP at 60 versus waiting until 65, including the permanent reduction for early CPP, the long-term benefits of higher guaranteed income, and the often overlooked planning window between ages 60 and 65. This five-year gap can be used strategically for RRSP withdrawals, smoothing income, reducing future RRIF balances, and minimizing future tax pressure and OAS clawbacks.
They highlight CPP isn’t just a monthly payment, it’s an income lever that affects your taxes, portfolio withdrawals, and long-term financial stability. While early CPP can make sense in specific situations (such as immediate cash flow needs, health concerns, or protecting a portfolio during a market downturn), delaying CPP can provide stronger lifetime income, reduce reliance on investments later in retirement, and create a more resilient retirement plan.
There’s no one-size-fits-all answer to CPP timing. The “right” decision depends on longevity expectations, cash flow needs, and how CPP fits into your overall retirement strategy. What matters most isn’t simply when you take CPP, but how that decision integrates with your RRSPs, TFSAs, taxes, and long-term income plan.
👉 Watch the full video episode on YouTube to understand when taking CPP early actually makes sense, and when waiting can dramatically improve your retirement outcome: https://www.youtube.com/watch?v=LRrWdEcmKeQ
Question for our listeners:
Are you planning to take CPP at 60, 65, or later, and have you mapped out how that choice will affect your taxes and retirement income over the next 20–30 years?
If you’d like help modeling your CPP timing and stress-testing your retirement income plan, we’re offering a free portfolio analysis 👉 https://tmfg.ca/portfolio-analysis/
Follow us on our social channels:LinkedIn: The McClelland Financial Group
Facebook: https://www.facebook.com/tmfg.ca
Instagram: https://www.instagram.com/themcclellandfinancialgroup_