Hi, I am relatively new to the MoneyReady App and not 100% sure I know what I am doing -- that said, I ran the Optimizer for myself and my spouse. I was surprised that the results suggest that I should take CPP at age 66 (my spouse at age 70 which does makes sense). But there are no reasons given as to why age 66 especially as the result is counter to almost everything I have read about the benefits of waiting until age 70 to take CPP. And a second question if I may ... I merged our CPP tables from our Service Canada CPP account. Does the MoneyReady App calculate the CPP benefit to each of us using the same calculation and methodology as Service Canada? And I'll add my thanks to you for developing the MoneyReady App ... I can't tell you how frustrated I have been in working with Financial Planners, PDF output and so little capability of running simulations, what-if's etc. Awesome!

The CPP calculations are done following the CPP Act, so the way the CRA would do it when you apply for the pension. It’s more accurate than the estimate you get from the Service Canada today which  is calculated  as if you were 65 today and your average earnings so far.  Our estimate considers your expected future income and contributions, and also considers your expectations for inflation until you start CPP. The TIME MACHINE Report provides a summary of the the CPP calculation given your entered table of contributions if you are curious about how the calculation was done,. It’s the last thing in the pdf report, so you’ll need to scroll all the way down.

I  checked on your run it and it does looks fine. I see what you mean about it optimizing to 66 for you. Looking at the 3D graph, it’s very flat. Essentially any ages after 63 for you and 62 for your spouse for starting CPP, results in about the same legacy. Why? I think the most likely explanation in your case is that you have a large portfolio set to earn decent returns, so any money you get from CPP earlier reduces what you need to withdraw from those accounts and they thus get to grow more, and that dampens the effect of receiving more CPP if you delayed. Generally the better investor you are, the more advantageous it is to take CPP earlier. I agree delaying CPP is generally advantageous, but not always, you have to do the math which is what we do. If you haven’t already, see https://www.moneyreadyapp.ca/blog/post/9 for my study of the issue. 

I’m glad you’re enjoying the MoneyReadyApp, thanks for you kind words,