Most Canadians take CPP at 65 out of habit or impatience. It's one of the most expensive financial decisions they'll ever make. Here's why 70 is the real sweet spot — backed by actuarial math, not wishful thinking.
Delaying from 65 to 70 permanently increases your CPP by 42%. That's an additional ~$662/month -or nearly $8,000/year -indexed to inflation, guaranteed, for the rest of your life. For a couple both delaying, that's potentially $16,000/year more.
The breakeven point for delaying from 65 to 70 is approximately age 82 — well within Canadian life expectancy (84.8 for women, 81.0 for men as of 2024 StatCan data). After breakeven, every month you're alive pays a permanent dividend.
The bridge strategy: Use RRSP or non-registered savings as a bridge from 65–70, drawing them down while deferring CPP. This reduces your RRSP balance (avoiding future RRIF minimums and OAS clawback) while locking in a higher, inflation-protected CPP income. It's a tax arbitrage and longevity hedge in one move.
One more factor nobody talks about: CPP is fully inflation-indexed, has no counterparty risk, and doesn't require portfolio management. At a 4% safe withdrawal rate, you'd need a portfolio of $608,000 to replicate the income stream of a $2,026/month CPP. Delaying is the closest thing to a free lunch in retirement planning.