Manulife Info & Tools

Canadians planning their retirement need to be aware of changes to CPP and OAS instituted by the government in 2012, and continuing in future years. CPP (Canadian Pension Plan) Early use, lower benefits.   Can elect to start to claim CPP at age 60 with catch.  There is a 0.5% reduction in pension payment for each month before age 65 that you collect.  Therefore someone who elects to claim at age 60 would receive a 30% reduction in their monthly CPP payment.  This reduction rate will increase each year till 2016 where it will cap out at 0.6% reduction per month or a 36% reduction if start collecting at age 60. Later use, higher monthly benefit.  You can elect to defer collecting CPP till age 70 and you will receive an additional monthly pension credit of 0.5% for each month of the deferral.  So someone who puts off receiving CPP till age 70 would receive a 30% bonus in their CPP calculation.  The monthly bonus credit for 2013 and years thereafter caps out at 0.7% for each month of deferral for a maximum bonus of 42% at age 70. OAS  (Old Age Security) New legislation and rules were introduced to change the date that Canadians can begin to collect OAS in June of 2012 Born before March 31, 1958, no change and you begin collecting at age 65. Born February 1, 1962 and after, collect at age 67 Born Between these dates, sliding scale of when you can collect.  See Chart.