Originally Posted by Calgary_Girl
Up here in Canada you can take reduced CPP (Canada Pension Plan) benefits at age 60 (it's 70% of full CPP benefits). You get full CPP benefits if you wait until your 65.
Yeah..... but the real question is how long it will take for you to get those 30% back if you wait until 65 to get anything, and what will happen if you should die before getting it. And of course, if you save it rather than spend it, you will have the profit or interest from investing it, plus the benefit of having it as a lifeline if you should need it.
My point is that taking it later if you don't need it has less benefits to you as you get older than taking it earlier and then inventing it.
Let's say your SS benefit is $15K. If you don't take it until 65 your ss is now 20K. But if you took it early and saved it for 5 years you would probably have about $32,000 extra in your account. You'd have to live to at least 72 or so to make it back, and even if you did, you wouldn't have that $32,000 for something you might have needed. In the usa its 8 years difference which is significant.