A financial planner is advising a 62-year-old client, Brenda, who is in excellent health and has substantial retirement savings. Her full CPP benefit at age 65 would be $1,250/month. Brenda plans to work until age 70. Financially, what would be the most advantageous strategy for Brenda regarding her CPP?

Question: A financial planner is advising a 62-year-old client, Brenda, who is in excellent health and has substantial retirement savings. Her full CPP benefit at age 65 would be $1,250/month. Brenda plans to work until age 70. Financially, what would be the most advantageous strategy for Brenda regarding her CPP?

Answer options:

• Take CPP at age 60 to start receiving benefits early and invest them.
• Take CPP at age 65, as this is the standard age for full benefits. ✅ Take CPP at age 70 to maximize deferral benefits.
• Split CPP with her spouse to reduce taxable income, starting immediately.

Correct answer: Take CPP at age 70 to maximize deferral benefits.

Explanation: Deferring CPP to age 70 (the latest) results in the largest possible increase to monthly benefits, at 0.7% per month past 65, up to a maximum of 42% at age 70. Given Brenda’s health and plan to work, this strategy maximizes her guaranteed lifetime income stream. (1 + 0.007 * 60 months) = 1.42 * $1,250 = $1,775/month, providing significant long-term financial security.