Eleanor, age 60, is considering when to start her Canada Pension Plan (CPP) retirement benefits. Her estimated unadjusted monthly benefit at age 65 would be $1,200. If she decides to start her benefits at age 60, what would be her approximate monthly CPP benefit?

Question: Eleanor, age 60, is considering when to start her Canada Pension Plan (CPP) retirement benefits. Her estimated unadjusted monthly benefit at age 65 would be $1,200. If she decides to start her benefits at age 60, what would be her approximate monthly CPP benefit?

Answer options: ✅ $768

• $960
• $1,080
• $1,200

Correct answer: $768

Explanation: Starting CPP benefits at age 60 results in a 0.6% reduction per month for each month prior to age 65. For 60 months (5 years), this is a 36% reduction (60 months * 0.6%). Therefore, Eleanor's monthly benefit would be $1,200 * (1 - 0.36) = $768.