Delaying CPP benefits could be the ‘silver bullet’ for retirement: NIA
Dr. Bonnie-Jeanne MacDonald pointed to a prospective solution that could be the ‘silver bullet’ for retirement security: delaying Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits.
MacDonald’s research indicates that delaying benefits from age 60 to 70 can more than double a retiree’s lifetime, inflation-indexed pension income. Yet, she highlighted fewer than 5 per cent of Canadians take advantage of this option as they typically wait until they turn 70 to claim, while 90 per cent claim by 65.
“They’re losing about $100,000 in lifetime income by taking their benefits at age 60 instead of age 70,” said MacDonald, director of financial security research at the National Institute on Ageing (NIA), while she pointed to market price research for comparison.
