What is Canada Pension Plan (CPP) and How Does it Work?


2 thoughts on “What is Canada Pension Plan (CPP) and How Does it Work?”

  1. Great Starting Summary of CPP. A couple of overall examples might help people get started in better understanding it. Is is not that simple. You need to play with it to get a better understanding of how to apply and when to take it. It took me awhile to understand it particularly doing things list moving a portion of your CPP to your spouse to lower income taxes, starting payments at 70 so have maximum yearly pension that has CPI increases that do not exist in most other sources of pension income.

    • Thanks Gavin. Totally agree. CPP is messy, sadly, just like the rest of our tax system.

      Huge benefits of deferring CPP in our opinion is to transfer investment risk, to increase inflation-protected payments, and to fight longevity risk. These are factors many Canadians should at least consider. These are not reasons to defer to age 70 automatically but part of the financial draw down puzzle.

      We hope you subscribe and follow along. More case studies coming related to this subject.



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