Helping employees understand the benefits of delaying CPP/QPP

The old adage “good things come to those who wait” is especially true of Canada and Quebec Pension Plan benefits.

A $1,000 monthly CPP/QPP benefit in today’s dollars at age 60 increases to $1,112.50 if the individual delays until age 61 and to $2,218.75 if they wait until age 70, equivalent to more than $100,000 in extra income in retirement, according to a 2020 research paper by Ryerson University’s National Institute on Ageing and the FP Canada Research Foundation.

However, the paper found fewer than one per cent of Canadians delayed CPP/QPP benefits until age 70 in 2009, while more than 95 per cent took CPP/QPP at age 65 or earlier the same year.

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