Why people hate the thought of deferring their CPP pension
I get it. Canadians really do not like the idea of waiting until 70 to start their Canada Pension Plan. In my last article, I showed that a couple, whom I called Carl and Hanna, were better off starting their CPP at 70 rather than 65. I showed they were better off even if Carl died young and Hanna lived a long time. It isn’t as if they deprived themselves in their 60s, though. They simply drew a bigger income from their registered retirement income fund (RRIF) until they turned 70 and CPP started. My example was met with healthy skepticism, if not downright disbelief. In this article, I will address the main objections that most Canadians seem to share. With all respect, let me state that the majority of objections are not valid. If I can sway a few readers, I will consider it a success.
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Article by Fred Vettese, Chief Actuary of Morneau Shepell.