The Retirement Pension Plan ( Cpp ) Benefits Essay

Turning 60? When is the best age to start Canada Pension Plan (CPP) benefits? As you approach age of 60, it’s time to take benefit of your life long hard work in terms of pension benefits. First, you need to decide at what age you would like to begin your CPP pension benefits. As this decision will impact your total pension benefits for the rest of your life, caution is advised. This article will help you to understand when the best age is to being your Canada Pension Plan (CPP) benefits. Let’s assume that Joey, Chandler and Ross will each turn 60 on 9th Sep 2016. Let’s also assume that according to each of their respective CPP Statements of Contribution, they will each receive $1,000 per month if they start their retirement benefit at the age of 65. The difference though is that Joey, Chandler and Ross wish to start their pension benefits different ages: Joey at age 60, Chandler at age 65, and Ross at age 70. We will analyze how much will they receive as a CPP benefit each year. We know that as per Canada Pension Plan if you begin CPP before age 65, your pension benefit will be reduced by 0.6% per month; and if you begin receiving benefits after age 65, your pension benefit will increase by 0.7% per month. This means that Joey will have reduction of 36% (60 months Ãâ€" 0.6%) of CPP benefit per month and Ross will receive 42% (60 months Ãâ€" 0.7%) more of CPP benefit per month. Chandler will receive the same amount as per his CPP Statement of Contribution (due toShow MoreRelatedA Recipient Of And Oas Pension Before You Are Eligible For The Gis Benefits1566 Words   |  7 Pagesbe a recipient of and OAS pension before you are eligible for the GIS benefits. If you are delaying your OAS pension, you will not be eligible for the GIS benefit even though you meet the other requirements. If you are already a recipient of the OAS pension, but not the GIC benefit, you can apply online using the My Service Canada Account service, or by mail. 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