If Sudha applies for Canada Pension Plan payments early, how much will she receive at age 61?

When analyzing the Canada Pension Plan (CPP) payments, it's important to understand how early application affects the benefit amount. The standard age to receive full payments is 65, but individuals can apply as early as 60, albeit with a reduction in their monthly benefit.

If Sudha applies for her CPP at age 61, the amount she becomes eligible for is reduced, reflecting a specific percent decrease based on the number of months before her 65th birthday that she is applying for the pension. The reduction for taking the benefit early is typically 0.6% for each month before age 65, which totals to a reduction of 36% if applied for at age 61.

In this scenario, if the full benefit at age 65 is higher than $657, Sudha's actual payment at age 61 would indeed be closer to that amount, indicating the calculations align with a typical benefit assessment under CPP regulations. Therefore, $657 is indeed the amount Sudha would receive if she applies at age 61, reflecting the necessary reductions for early withdrawal from the plan.