Should I Take My CPP Early?

Let's assume you are age 60 and have the option of taking your CPP early.  My advice is to take it out, pay the tax and immediatley invest it into your RRSP to offset the taxes.  Below is an example of the kind of income you could generate on your own by taking your CPP early and investing it to age 71 at which time you would transfer to a RRIF (Registered Retirement Income Fund).


Age 60             CPP               $700/mth                   $8,400 annually

Take CPP and pay the tax and immediately invest into an RRSP to offset tax.

  • Invest             $8,400 annually ($700/mth)
  • ROR                5%
  • Duration          Age 71 (ll years)
  • Account Value  $139,670

Invest the RRSP into a 5% for life product (RRIF)

Guaranteed Income          $6,983.50 annually  OR   $581.95 monthly

  • Funds are accessible at any time
  • Funds are transferable to a named beneficiary outside of probate
  • This income can continue to a spouse upon a premature death
  • You have full control

CPP dies with you and you have no control or access to any funds.












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