HOOPP has been a long-standing advocate for improved retirement security in Canada and we conduct research to help inform the national dialogue on this important issue. We are pleased to find like-minded thinkers who contribute their perspectives to this dialogue. Today, the NIA has released the first paper in a new eight-part series about how financial services and policy makers can help Canadians make informed decisions to maximize their Canada/Quebec Pension Plan (CPP/QPP) income. The paper, Introduction: Opportunities and Obstacles to Shifting the Paradigm, gives an overview on why most Canadians start their CPP/QPP at 65 and the areas of opportunity to help shift their thinking about retirement planning.

Could some Canadians be better positioned for retirement by waiting to claim their CPP/QPP?

The paper notes that starting CPP/QPP after the age of 65 can increase payments significantly, especially if they wait until 70 years old when their monthly pension could more than double what it would have been if they began collecting at 60. These higher payments are for life and indexed to inflation. So, why do most Canadians take it at 65?

Retiring late and delaying CPP/QPP may not be an option for everyone depending on their specific personal and professional circumstances. However, for those who are able to do so, the paper makes an intriguing argument in favour of using informed decision-making, catering to human psychology and behaviour, and placing emphasis on long-term financial planning to shift the current paradigm.

This shift is especially important in the context of the Canadian retirement system which is based on three important pillars working together to secure Canadians’ retirement incomes: personal savings, workplace retirement savings arrangements, like HOOPP, and government programs, like CPP/QPP.

However, not all Canadians are able to access all three pillars. In the latest Canadian Retirement Survey, almost half (44%) of non-retired Canadians aged 55-64 reported having less than $5,000 in savings. Coupled with the fact that the majority of Canadian workers do not have a registered pension plan through their employer, the importance of government programs become all the more critical. In fact, according to NIA’s paper, 90% of recipients say their CPP/QPP pension is an important source of their retirement income with 60% saying they can’t live without it.

We believe the paper’s ideas provide an interesting perspective to the national retirement security dialogue. We are pleased to share the series, 7 Steps Toward Better CPP/QPP Claiming Decisions: Shifting the paradigm on how we help Canadians, as new papers are released throughout the rest of the year.

7 Steps Toward Better CPP/QPP Claiming Decisions:
Shifting the paradigm on how we help Canadians