It’s age-old financial advice: wait as long as possible to start your public pension benefits, so that you can maximize your monthly payments. But that may not be the best advice for everyone. New research from the Global Risk Institute shows that for those with lower incomes, starting Canada Pension Plan (CPP) payments earlier can reduce recipients’ chances of senior poverty. The reason is simple: lower-income seniors often have shorter life expectancies, and often need access to funds sooner to manage rising living costs. The standard age to start a pension is 65. However, you can start receiving CPP payments as early as age 60 or as late as age 70. So, if someone chooses to claim their pension at 60, they face a monthly payment reduction of 0.6%, totalling a hit of 36% by 65. For some people, they are better off having the money sooner. If you are in a comfortable place without CPP payments, it can pay off to wait. For example, if you retire at 65 in 2024, you’d get a maximum annual CPP pension of around $16,400, compared to $23,000 if you retire at 70.