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Financial PostJanuary 2023

Is there any advantage to continuing CPP contributions after age 60?

Featured writing by Allan Norman · M.Sc. · CFP · CIM

The Short Version

If you're still working and collecting a paycheque after 60, you may wonder whether continuing to pay into the Canada Pension Plan does you any good. This piece starts with a blunt truth: while you're employed and under 65, you don't get to opt out, so the contributions keep coming whether you like them or not. From there it looks at what those ongoing payments actually buy through the post-retirement benefit, and how the rules shift once you reach the ages where you can choose to stop. CPP itself can begin anywhere from 60 to 70, with a larger cheque the longer you wait, which adds another layer to the timing question. It's most relevant to someone working past 60, perhaps already drawing CPP, trying to make sense of money still leaving each paycheque.

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