Why do retirees fear taking CPP late?
Most retirees say their biggest fear is outliving their money. One wouldn’t know it, though, from the way they convert their savings into income. Retirees are loath to take advantage of certain strategies that would guarantee substantial income for life. In particular, few people like the idea of buying an annuity and fewer still wait until 70 to begin collecting their Canada Pension Plan benefits. So what is going on? Of all the possible explanations for why people don’t act in their best interests, the most likely perhaps is that an even greater fear lurks beneath the surface: the fear that they will leave money on the table in the event of early death.
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Article by Fred Vettese, partner and actuary with Morneau Shepell.