CPP delayed payments increase by what percent per year delayed, up to age 70?

CPP delayed payments increase by what percent per year delayed, up to age 70?

• A. 8.4% per year delayed
• B. 7.2% per year delayed
• C. 6% per year delayed
• D. 9% per year delayed

Answer: (A)

Delaying CPP retirement benefits beyond age 65 boosts the monthly amount by a fixed postponement factor: 0.7% for every month you wait, up to age 70. That works out to 0.7% × 12 = 8.4% per year of delay. So each year you postpone from 65 to 70 increases the CPP retirement benefit by 8.4% compared with starting at 65. If you wait five years, the increase is 0.7% × 60 = 42% higher than at 65. The boost stops at age 70, so delaying beyond that does not add more. This is why 8.4% per year delayed (up to age 70) is the correct understanding.

Delaying CPP retirement benefits beyond age 65 boosts the monthly amount by a fixed postponement factor: 0.7% for every month you wait, up to age 70. That works out to 0.7% × 12 = 8.4% per year of delay. So each year you postpone from 65 to 70 increases the CPP retirement benefit by 8.4% compared with starting at 65. If you wait five years, the increase is 0.7% × 60 = 42% higher than at 65. The boost stops at age 70, so delaying beyond that does not add more. This is why 8.4% per year delayed (up to age 70) is the correct understanding.