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What Is the Best Time To Start Your Cpp Pension if You Retire in November or December 2023?



What Is the Best Time To Start Your Cpp Pension if You Retire in November or December 2023?

What Is the Best Time To Start Your Cpp Pension if You Retire in November or December 2023. Retirees face a crucial decision regarding the Canada Pension Plan (CPP) – whether to commence benefits in December of the current year or wait until 2024, contingent on the October Consumer Price Index (CPI) announcement.

Factors to Consider When Initiating CPP Pension in Nov or Dec 2023

Commencing CPP pension in December may seem like the immediate choice, but careful consideration is essential. The administration timing of CPP Pension holds significant implications for investments, inheritance planning, tax rates, Old Age Security (OAS), and more. A hasty decision could lead to missed rewards, bearing in mind the irrevocable nature of the choice.

Understanding CPP Pension

The CPP is a vital component of Canada’s retirement income system, offering a basic benefits package to retirees and disabled contributors. Established in 1965, it plays a crucial role in providing taxable government benefits to eligible Canadians. CPP contributions are mandatory for most citizens working in Canada, contributing to a lifetime income post-retirement.

Initiating CPP Pension | A Crucial Decision

The timing of CPP administration requires careful thought due to its far-reaching implications on various aspects of your financial plan. Decisions made at this stage can influence investments, inheritance planning, tax rates, OAS, and more. An ill-informed choice may result in significant missed opportunities, emphasizing the importance of strategic planning for the initiation of CPP pension.

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Considering the Timing | Should You Wait for 2024?

Opting to start your CPP pension in December allows for an inflation-adjusted increase in January. Calculated based on the Consumer Price Index figures, the anticipated increase in 2024 is estimated to be 4.4%, surpassing the highest increase since 1992. Delays in pension commencement can lead to a lower earnings base and a subsequent reduction in benefits.


The Impact of Delaying CPP Pension to 2024

Initiating CPP enrollment in January, as opposed to December, results in a missed opportunity for the anticipated 4.4% inflationary rise. Additionally, a new earnings base is applied, leading to a potential decrease in overall benefits. Considering the added monthly adjustment for delays, the difference in CPP benefits could be significant – 4.3% higher for those starting in January.

CPP Collection Timing and Benefit Adjustments

While CPP can be initiated at age 60, there are financial trade-offs. Each month of early collection results in a 0.6% reduction, totaling a 7.2% annual reduction if started before turning 65. Waiting until 65 ensures full benefits, and for those seeking increased benefits, postponing collection until age 70 is an option.


The timing of initiating CPP pension demands careful consideration, with significant financial implications at stake. Whether to commence in December or wait until 2024 involves trade-offs, emphasizing the need for strategic decision-making aligned with individual retirement goals.

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