The CPP/QPP Insight helps determine the best age for a client to begin taking their Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits.
When deciding between taking benefits earlier (for example, at age 65) or delaying them to a later age (up to 70), there are trade-offs. Taking them early provides income right away, and any extra funds could potentially be invested. Delaying benefits, however, increases the monthly amount received.
The tool calculates a break-even age, the age at which delaying benefits becomes more financially beneficial than starting them earlier.
Example:
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A client expects to live until age 90.
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Their break-even age is 84.
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If they start CPP/QPP at 65, they’ll receive more money in the early years, but by age 84, the value of delaying would surpass the early-start strategy.
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Since their life expectancy is 90, delaying benefits could result in more overall lifetime income.
How the calculation works:
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Total CPP/QPP Received – Adds up all projected payments from the chosen start age until the expected mortality age.
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Investible Excess – If starting earlier, any “extra” income is assumed to be invested until age 70, growing at the selected rate.
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Break-Even Age – The age where the “early start plus investments” equals the “delayed start.” After this point, delaying is the better option.
So, if the break-even age is 84, and the client expects to live until 90, it may be worth delaying CPP/QPP benefits to maximize lifetime value
See a demonstration below.