CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 26th

—Franco

I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP)  to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways to avoid CPP contributions as well as reasons to treat your CPP like an RRSP. So, your question does bring up some interesting discussion points.

When is CPP paid?

CPP contributions generally result in an increase to a future CPP retirement pension that starts to be paid between a retiree’s ages 60 and 70. I say “generally” because if a contributor reaches the maximum years of contributions, or if a retiree’s spouse dies and their combined retirement and survivor’s pensions hit the maximum, for example, contributions may not result in an increase. 

Retirees often start their CPP as early as possible so they can preserve their RRSP investments. Interestingly, many if not most retirees would probably be better off deferring…