Overview

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life. To qualify you must:

• be at least 60 years old
• have made at least one valid contribution to the CPP

Valid contributions can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.

Pension Amount

The standard age to start the pension is 65. However, you can start receiving it as early as age 60 or as late as age 70.

• If you start before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36% if you start at age 60
• If you start after age 65, payments will increase by 0.7% each month (or by 8.4% per year), up to a maximum increase of 42% if you start at age 70 (or after).

For 2022, the maximum monthly amount you could receive as a new recipient starting the pension at age 65 is $1,253.59. The average monthly amount paid for a new retirement pension (at age 65) in July 2022 is $737.88. Your situation will determine how much you’ll receive up to the maximum.

References