How much would Simon receive in monthly CPP benefits if he retires at age 63?

To understand the context of CPP (Canada Pension Plan) benefits and how they apply when someone retires before the age of 65, it's important to recognize the mechanisms behind the adjustment of benefits.

When individuals choose to start receiving their CPP benefits before the standard age of 65, their monthly pension amount is reduced as a form of early retirement penalty. This reduction reflects the longer duration over which they will receive the benefits. In Simon's case, if he retires at age 63, he would receive a reduced amount calculated at that age, specifically $513.60 today.

Furthermore, choosing to retire early does not result in an increase when reaching the age of 65. The initial monthly benefit amount remains unchanged, meaning Simon will continue to receive $513.60 each month without the adjustment that typically occurs when one waits to retire until at least the age of 65.

This backdrop emphasizes why the correct choice states he would receive $513.60 today, which will not increase when he reaches age 65. It also highlights the fixed nature of early benefits compared to waiting until the standard retirement age.