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In Canada, the pensionable age is 65 years old for both men and women. Most retirees start collecting payments from their Canadian Pension Plan (CPP) at this age. But financial advisors advise pensioners against it. They call it a “decumulation” mistake that you should avoid.
They say that collecting CPP payments at 65 is a bit too early. It won’t give you financial security in old age. The suggestion is to defer your CPP payments for as long as you can. For every year you defer collection, the monthly amount you will receive increases.
If you wait until you’re 70, the payout is 42% more than what you would otherwise receive at age 65, a significant difference which could benefit you in your later years.
In Canada, the pensionable age is 65 years old for both men and women. Most retirees start collecting payments from their Canadian Pension Plan (CPP) at this age. But financial advisors advise pensioners against it. They call it a “decumulation” mistake that you should avoid.
They say that collecting CPP payments at 65 is a bit too early. It won’t give you financial security in old age. The suggestion is to defer your CPP payments for as long as you can. For every year you defer collection, the monthly amount you will receive increases.
If you wait until you’re 70, the payout is 42% more than what you would otherwise receive at age 65, a significant difference which could benefit you in your later years.