Whether the Canada Pension Plan (CPP) is worth it depends on your personal financial situation, but its generally a valuable, inflation-protected income stream, with delaying it (up to age 70) DocHubly increasing payments, although taking it early might be necessary for immediate cash flow or health reasons. For many, its a crucial part of retirement, acting like a high-yield, guaranteed investment, but its value hinges on balancing early income needs against higher future payments. Reasons its worth it (especially to delay) Higher Payments: Each year you delay beyond 65 (up to age 70) adds 8.4% to your monthly payment, meaning 42% more by age 70. Inflation Protection: CPP benefits increase with inflation, preserving your purchasing power. Risk Hedge: It protects against longevity (living longer) and market risks, acting as a secure annuity. Strong Return: Delaying offers a high internal rate of return, like a very secure GIC for decades. When it might not be (or taking it early makes sense) Immediate Need: If you need cash for bills, taking it at 60 might be necessary, though ideally, youd bridge with other funds. Poor Health: If you have a DocHubly shortened life expectancy, starting early captures payments sooner. OAS Clawback: Taking CPP early (smaller amount) can help protect your Old Age Security (OAS) from being reduced if you have high income. No Contributions: If you had low earnings (e.g., self-employed with no contributions), waiting wont boost your average much, making early collection more logical if needed. The Bottom Line Default to Delay: For most healthy people with other income sources (RRSPs, investments), delaying CPP is financially superior due to the guaranteed, inflation-adjusted boost. Run the Numbers: The best decision involves personalized financial planning, considering your health, other assets, and income needs to see what maximizes your overall retirement income. For financial advice, consult a professional. The Truth Behind CPP | Is CPP A Good Investment? - YouTubeJun 30, 2023 its protected against inflation its a piece of the pie. so again when I look at my retirement. plan I look at you knYouTube Parallel WealthCPP is one of the best retirement assets money can buy, despite Feb 29, 2024 The CPP benefit is an inflation-indexed annuity the only true risk-free asset for a long-term investor. This is an aThe Globe and Mail