NIA and partners call for a Pension Delay Guarantee

Today, the National Institute on Ageing delivered a letter to Hon. François-Philippe Champagne, Minister of Finance, and Hon. Patty Hajdu, Minister of Jobs and Families calling for the implementation of a new mechanism under the Canada Pension Plan (CPP) called the Pension Delay Guarantee (PDG). This policy offers a simple, fair, and cost-effective solution to help Canadians make better decisions about when to claim their CPP retirement benefits—improving financial security in later life and modernizing our national retirement financial system.

Endorsed by 76 individuals, including pension and public policy experts, and representatives from associations reflecting the interests of older adults, pension funds, financial institutes, and insurers, the letter calls upon the federal government to implement the PDG as part of the triennial review of the CPP, which is currently underway. Currently, most Canadians claim CPP by age 65—even though deferring could substantially increase their lifelong retirement income. For those who can afford to delay, the main barrier is the fear of “missing out” if they die early, a well-documented behavioural challenge known as loss aversion.

The PDG directly addresses this concern by providing a form of protection: if someone delays claiming CPP and dies before breaking even, their estate would receive the difference between what they actually collected and what they would have received had they claimed at age 60. In effect, the PDG acts as a money-back guarantee—removing a key fear, encouraging smarter financial choices, and ensuring greater equity across income groups. Importantly, this reform achieves these goals without raising contributions, cutting core benefits, or passing on the cost to taxpayers.