(NC) Retirement is fun. You can focus on hobbies, volunteering or travelling. But financial security is essential. If youre about to transition from full-time work, you need to assess your financial situation and plan how youll pay for retirement.
New research contains some critical information. It outlines the significant benefits some Canadians can get by delaying claiming their Canada Pension Plan benefits up to age 70, depending on their personal circumstances.
Even delaying benefits by a single year, from age 60 to 61, can make a big difference. This is because a $1,000 monthly benefit at age 60 increases to $1,112.50 if you wait till age 61. It goes up to $2,218.75 at age 70 for life, and with inflation protection.
Indeed, you can expect to lose more than $100,000 of secure lifetime income (in today’s dollars) over the course of your retirement if you choose to take benefits at age 60 rather than 70.
Delaying CPP benefits for as long as possible is a safe, inexpensive approach to a more secure, worry-free retirement income that lasts for life and keeps up with inflation.
A CFP professional or a qualified associate professional planner can help you map out your retirement and ensure you neither outlive your savings nor become a financial burden on your loved ones. Find a professional financial planner near you at findyourplanner.ca.