What are CPP benefits?
Canada Pension Plan (CPP) benefits may be a key part of your retirement income. Learn how CPP works and who’s eligible to receive it.
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Canada Pension Plan (CPP) benefits are monthly payments that become part of your retirement income. To qualify for CPP benefits, you need to be at least 60 years old and have made at least one CPP contribution through your work in Canada, or have received CPP credits from a former partner or spouse who paid into the plan. Once you apply and qualify for benefits, you will receive the payments for the rest of your life.
The amount you receive depends on your average earnings, whether you’ve maximized your contributions and when you started working in Canada. It also depends on the age at which you begin to receive benefits; you get more for each month you defer CPP, up to age 70. CPP payments are taxable and adjusted for inflation.
Example: “I’m waiting until I’m 70 to apply for CPP to maximize my benefit payments.”
Read more on CPP benefits:
- How to understand your CPP Statement of Contributions
Get an estimate of what your Canada Pension Plan retirement benefit will be at age 60, 65 or 70. - Can you change your mind about taking CPP early?
Rena started receiving Canada Pension Plan benefits at age 60 and wants to know if she can now defer the pension, or if other options are available. - The upside to waiting until age 70 to take CPP benefits
Consider your life expectancy and probable return when making your decision about whether to take government pension benefits as soon as you retire, or to wait. - When is the best time to start taking your CPP payments?
After a lifetime of contributions, Canada Pension Plan benefits can be worth, on average, more than $200,000—if you time it right. - Could retiring at 61 significantly reduce your CPP benefit?
Ellen has contributed to the Canada Pension Plan for most of her life. She’d like to retire early, but wonders how her years away from the workforce might affect her benefits. - What is the CPP Survivor’s Pension? How can Canadians claim this benefit?
When a spouse loses their partner, benefits are available to them through the government, such as the CPP Survivor’s Pension
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