Q&A: CPP — now or later?

A reader asks Gordon Pape if her 61 year old husband who is still working should apply for Canada Pension Plan now. Are there any disadvantages to applying early?

Question: My husband is 61 years old and still working. Should he apply for Canada Pension now or wait for retirement? Thanks. – Terri R.

Gordon Pape answers: If you don’t need the money, then I suggest waiting. By applying early, your husband will receive a smaller pension than if he waited until 65. Plus under the new rules he would still have to continue to make CPP contributions so there is no advantage there. If he decides to work beyond 65, he can delay applying until as late as age 70 and receive bonus payments.