Which of the following describes a key benefit of deferring Canada Pension Plan (CPP) retirement benefits beyond age 65?

Question: Which of the following describes a key benefit of deferring Canada Pension Plan (CPP) retirement benefits beyond age 65?

Answer options:

• The deferral guarantees eligibility for Guaranteed Income Supplement (GIS). ✅ The monthly CPP benefit amount increases for each month of deferral up to age 70.
• Any deferred CPP payments are received as a lump sum at the start of benefit receipt.
• Deferral allows for continued contributions to the CPP from employment earnings.

Correct answer: The monthly CPP benefit amount increases for each month of deferral up to age 70.

Explanation: Deferring CPP retirement benefits beyond age 65 results in a permanent increase in the monthly benefit amount for each month of deferral, up to a maximum at age 70. This increase is a significant incentive for healthier individuals who can afford to wait.