The maximum monthly CPP benefit you could receive at age 65 is $1,364.60.
The actual amount you receive from the CPP upon retirement will depend on various factors, including how much and for how long you have contributed to the plan, as well as the age at which you decide to start receiving your pension.
Your CPP retirement pension is designed to replace a percentage of your average work earnings, and is expected to increase significantly in the future due to the enhancements set in motion since 2019.
Payment Amounts and Schedule in 2024
The maximum monthly CPP retirement benefit for new recipients starting at age 65 in January 2024 is $1,364.60.
CPP payments are made monthly, and the amounts are adjusted each year to reflect changes in the Consumer Price Index, helping to preserve your purchasing power against inflation.
For 2024, the CPP payment schedule is as follows:
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Eligibility and Contribution Requirements
To receive CPP benefits, you must have made at least one valid contribution—either as a self-employed individual or an employee.
The CPP contribution rates and eligibility criteria are set annually, with contributions made on earnings up to the year’s maximum pensionable earnings.
Benefit Calculation and CPP Enhancement
CPP benefits are calculated based on your earnings and the years you contributed to the plan.
The CPP enhancement aims to strengthen retirement income for future beneficiaries by increasing contribution rates and the maximum pensionable earnings. When fully implemented, the CPP will have grown to replace one-third (33.33%) of a senior’s average work earnings (compared to the current 25%).
Age Considerations and Benefit Optimization
Your retirement age significantly impacts your CPP benefits; for example, starting CPP after the age of 65 can increase your monthly payments. On the other hand, opting in as early as 60 will reduce them.
Waiting until you’re 70 grants you the highest possible, with an increase of 42% in monthly benefits.
Supplemental Government Benefits
In addition to CPP, you may be eligible for the Old Age Security pension and the Guaranteed Income Supplement (GIS), which provide extra financial support.
If you have a low income or no other retirement savings, these programs can substantially increase your retirement income.
Keep in mind that the OAS pension can be subject to a recovery tax (clawback) if your net income exceeds a certain threshold.
Starting Your CPP Retirement Pension
As a Canadian citizen or legal resident living in Canada, you can apply online through Service Canada or complete a paper application.
Before applying, gather key documents, including your Canadian Retirement Income Calculator estimates, Service Canada account details, and date of birth verification.
- Apply Online: Access the Service Canada website and sign in to your account. The online application process is predictable and straightforward, allowing for monthly basis payments to commence as you wish.
- Apply on Paper: Download the application from the Service Canada website or request a paper copy by phone or in person. Mail the completed application to the nearest Service Canada office.
Impacts on Other Retirement Benefits
Applying for CPP can influence your Old Age Security benefits due to the higher OAS clawback threshold. Understanding the interplay between CPP benefits, RRSP income, and OAS clawback limits is important to maximize your retirement income.
To ensure you receive your benefits on time, applying six months before your intended retirement date is recommended.
