By Sheryl Smolkin | Mon Jan 03 2011
Changes to the Canada Pension Plan start taking effect this month and are designed to encourage people to work longer before they start drawing a government pension.
The changes take place gradually over the next five years and make it much harder to figure out when to retire and how to ensure you receive the maximum benefit.
What’s changing is that incentives to retire between 60 and 64 are being reduced, while incentives to start taking the pension later are being improved. Ottawa is doing this to encourage people to retire later and allow them to collect CPP and continue to contribute to the plan until age 70 if they are still in the workforce.
Here are the new options and what they mean to you: