When should you begin receiving a retirement pension under the Québec Pension Plan?
The age at which you begin receiving a retirement pension under the Québec Pension Plan will affect your income for the rest of your life, so choose wisely.
The advantages of waiting
While it is possible for you to receive a retirement pension at age 60, applying later may be to your advantage for several reasons.
The amount will be higher
For example, if you were born in January 1960, for a yearly pension of $10 000 at age 65, you could receive the following amounts according to the age at which you begin receiving your pension.
Variation in retirement pension amounts according to age —
|Age ||Pension amount ||Increase in pension amount compared with a pension received as of age 60|
|65 ||$10 000||$3601|
|66 ||$10 928||$4529|
|67 ||$11 869||$5470|
|68 ||$12 824||$6425|
As shown in the table, if you were born in January 1960 and begin receiving your pension at age 62 instead of age 60, your pension will be increased by $1376 and indexed every year for the rest of your life. And by waiting until age 70, the amount of your pension could double.
To quickly calculate your retirement income, use our SimulR tool.
Your income is sheltered from inflation
A pension under the Plan is one of the main sources of income in retirement. The greater your pension, the greater the proportion of your retirement income that will be sheltered from inflation because the amount is indexed annually
Your income will be guaranteed for the rest of your life
A pension under the Plan is paid for the rest of your life. It will not run out, like personal savings could. As a result, if the amount of your pension is greater, you decrease the risk that your income will drop substantially in your golden years.
Should you wait?
Other than age, there are a number of personal factors to consider when choosing when you should apply for your pension. What is your state of health? Your life expectancy? What are your other sources of retirement income?
If you are receiving a surviving spouse's pension, it might be to your advantage to delay applying for a retirement pension. You can call and ask for a simulation of the amounts.
Work and retirement
You can start receiving a retirement pension as of age 60 and continue working.
Be careful! If you income allows you to maintain your standard of living, it might not be to your advantage to start receiving a retirement pension at age 60.
To make sure your income from the Québec Pension Plan, Old Age Security program, private pension plans and personal savings will be enough to maintain your standard of living in retirement, you will have to do some calculating.
If you would like a simulation using the information recorded in your name under the Québec Pension Plan, use CompuPension.
Do not hesitate to ask a friend, family member or financial planner for help if you need it.
If you decided to apply for a retirement pension, use our online service.