What exactly is minimum allowed age for early retirement to draw a pension? In CRA website, it says that to get CPP, you need to be 65 (or is it 67) years of age. But some financial columns mention people retiring at 55 with pension. Does it mean that if a person stops working at 55, he will need to wait 10 yrs before he starts drawing the money from CPP?
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You can withdraw from CPP as early as 60. However, by doing so, you will permanently reduce the payments.
The reduction is calculated based on average life expectancies. If you live for an average amount of time, that means you'll receive approximately the same total amount (after inflation adjustments) whether you start pulling from CPP at 60, 65, or even delay your pension later.
People may have pensions through systems other than CPP. This is often true for big business or government work. They may work differently. People who retire at 55 with a pension are not getting their pension through CPP. A person retiring at 55 would need to wait at least five years to draw from the CPP, and ten years before he or she was eligible for a full pension through CPP.
Canada also offers Old Age Security (OAS). This is only available once you are 65 years old or older, though this is changing. Starting in 2023, this will gradually change to 67 years or older. See this page for more details.
As always, it's worth pointing out that the CPP and OAS will almost certainly not cover your full retirement expenses and you will need supplementary funds.
answered Dec 20, 2013 at 14:31
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Thanks. The amount that one withdraws from CPP and OAS...is it same for every Canadian? Or does it depend on home much you contributed to CPP over your career? i.e is it defined benefit plan or defined contribution plan Commented Dec 21, 2013 at 4:51
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en.wikipedia.org/wiki/… and en.wikipedia.org/wiki/Old_age_security give you your answers. Commented Dec 21, 2013 at 18:56