My Service Canada = https://www.canada.ca/en/employment-s...

Episode one:    • When Should You Start Collecting CPP?...  
Episode three:    • 5 Reasons To Start Collecting CPP At ...  
Episode four:    • 5 Reasons To Start Collecting CPP At ...  
Episode five:    • 5 Reasons To Start Collecting CPP At ...  

Calculating the break even point on collecting your CPP is extremely important as it will help guide you to decide when to start collecting payments.

Let's assume your CPP at age 65 is $1,000 per month...if you take CPP at age 60, your monthly amount will be $640 per month

From age 60-65 you will have collected $38,400

The monthly difference between age 65 and age 60 is $360 ($1000-$640).

Thus if we take the amount collected ($38,400) and divide it by the monthly difference ($360) we get 106.67 – let’s round that to 107.

This means it will take 107 months to make back that difference, or 8 years and 11 months.

So now we add 8 years and 11 months to age 65 and we come out with 73 years and 11 months.

So, if you live past age 73 and 11 months, then it would make more sense to delay taking your CPP to age 65 versus taking it at age 60.

Obviously there is much more to this than a simple calculation and we will cover these in our next 3 videos: taking CPP and 60, 65 and 70.

Everyone’s situation is different, so the best plan for you likely is not the best plan for your neighbor.

And remember, the breakeven point is just part of the calculation – if you were to invest the CPP payments from age 60 in a TFSA, then that would boost the overall amount you have later and further benefit taking the CPP earlier - but we all know you aren’t going to save your CPP payments!

OAS Clawback: https://www.canada.ca/en/services/ben...



CPP Benefits: https://www.canada.ca/en/services/ben...

CPP Break Even Calculator: https://www.taxtips.ca/calculators/cp...
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

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