It is a decision that many Canadians will need to make prior to retirement: when should you start Canada Pension Plan (CPP) benefits? At age 60, 65 or wait until 70?
Despite the potential for a higher CPP payout — an increase of 42 percent if the CPP is deferred to age 701 — less than one percent of Canadians wait until age 70 to collect CPP. For those who have a choice,2 taking CPP before 70 may not be that surprising. In the 1972 Stanford Marshmallow Experiment, psychologist Walter Mischel gave his young participants a choice — one marshmallow immediately, or two if they waited 15 minutes. While most wanted to wait, less than one-third were able. As the experiment showed, humans tend to favour instant gratification.
Click here to read the full article.