Certified Financial Planner (CFP) Practice Exam · Question
Sarah, aged 60, is considering applying for her Canada Pension Plan (CPP) retirement benefits. Her estimated full CPP benefit at age 65 would be $1,200 per month. If she decides to start receiving benefits now at age 60, what would her approximate monthly CPP benefit be?
Starting CPP at age 60 results in a 0.6% reduction per month before age 65. For 60 months, this is 60 * 0.6% = 36% reduction. So, $1,200 * (1 - 0.36) = $768.
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Question: Sarah, aged 60, is considering applying for her Canada Pension Plan (CPP) retirement benefits. Her estimated full CPP benefit at age 65 would be $1,200 per month. If she decides to start receiving benefits now at age 60, what would her approximate monthly CPP benefit be?
Answer options: ✅ $768
- $960
- $1,080
- $1,200
Correct answer: $768
Explanation: Starting CPP at age 60 results in a 0.6% reduction per month before age 65. For 60 months, this is 60 * 0.6% = 36% reduction. So, $1,200 * (1 - 0.36) = $768.
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