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In 412 years, Andrew will be 62. Andrew is thinking that, in 412 years, he might retire only part-time. As a result, he is not
In 412 years, Andrew will be 62. Andrew is thinking that, in 412 years, he might retire only part-time. As a result, he is not sure he would take the CPP in 412 years. Andrews father and grandfathers died in their mid-70s, but his mother and grandmothers lived to their late 80s.
Assume the maximum CPP he is eligible to receive at the beginning of the year at age 65 is $15,000 pa. If Andrew thinks he might live to age 90, should he take the CPP retirement benefit at age 62 or wait until age 65? What are both her options worth at the age 62? Use a discount rate of 4% to evaluate what the CPP annual cash flows will be worth. Show all calculations. Ignore taxes & inflation.
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