New CPP rules for 60 somethings in 2013....

December 31, 2012 at 11:03 AM

                      Under new CPP rules, individuals that start receiving their CPP before age 65 (as early as age 60) will suffer a greater penalty but, will have increased benefits if they defer past age 65 (as late as age 70).

For example, if an individual started receiving CPP payments early, previously the penalty was 0.5% per month or 6% per annum.  If a person started five years early at age 60, he/she would suffer a 30% penalty.  This 0.5% per month penalty has been increased to 0.6% to be phased in up to the year 2016.  The benefit for deferring a receipt of CPP payments past 65 is proposed to increase from 0.5% to 0.7% per month and is phased in by 2013.

Therefore, if he/she commenced to receive this at age 60, the amounts that would be received would be 36% less (60 months x .6%). If they waited until age 70, they would receive 42% more (60 months x .7%).