Sarah, age 70, delayed her CPP benefits. Her estimated unadjusted monthly benefit at age 65 would have been $1,000. What would be her approximate monthly CPP benefit now that she has started it at age 70?

Question: Sarah, age 70, delayed her CPP benefits. Her estimated unadjusted monthly benefit at age 65 would have been $1,000. What would be her approximate monthly CPP benefit now that she has started it at age 70?

Answer options:

• $1,000
• $1,042
• $1,300 ✅ $1,420

Correct answer: $1,420

Explanation: Waiting to start CPP benefits after age 65 results in an increase of 0.7% per month. Starting at age 70 means a delay of 5 years (60 months), resulting in a 42% increase (60 months * 0.7%). Therefore, Sarah's monthly benefit would be $1,000 * (1 + 0.42) = $1,420.