This is a long Blog post, so a summary of the results is in order, to keep your attention.
The chart below are results calculated using my Retirement Forecaster spreadsheet and shows the optimum age to take CPP (blue line). The Retirement Forecaster spreadsheet takes into account effects of income tax, investment return and OAS clawback when determining the optimal strategy. You can estimate your life expectancy and use this chart to make an informed decision on when to start CPP. The red line is the result, just using a simple Total Cash calculation, only considering how much cash you receive as CPP payments. This comes to a different conclusion as the more accurate results from the Retirement Forecaster spreadsheet.
Note that the assumptions that went into this calculation are specific and may not represent your situation. You can estimate the best age to start CPP by using my Retirement Forecaster spreadsheet for your specific situation.
Okay, on with the Blog Post
Why should I write about this? Much has already been written on this subject, and by very competent and capable people. I want to look at this to see if it is possible to simplify the conclusions.
Many of the articles do not address the tax implications or the OAS clawback of a lower or higher CPP benefit for a different period of time. Nor do many consider the time value of money. Using my Retirement Forecaster spreadsheet, we can account for these.