The Canada Pension Plan (CPP) is Canada’s social security system that provides eligible retirees and disabled individuals a basic lifetime income after age 65. It’s a monthly taxable benefit that replaces a portion of your income once you retire.
In 2025, CPP payments increased by 2.6%, bringing the maximum monthly payment to $1,433, while the average monthly payment is $808.14. In comparison, the CPP payment in 2024 was $1,364.60.
The increase was brought about by a significant rise in inflation over the last 12 months. You can also increase your CPP payment amounts by starting your pension at a later age, or up to age 70, where you can grow your pension by up to 42%.
When to Start Your Pension
The standard age to start receiving the CPP benefits is 65. However, you have the option to start receiving it as early as age 60 or as late as 70. The maximum age to start receiving the benefit is 70.
- If you decide to start receiving your pension before age 65, the monthly payments will decrease by 0.6% (or by 7.2% per year). If you start at age 60, the reduction will be 36%.
- If you start at age 65, each monthly payment will have a 0.7% increase (or by 8.4% per year). If you start at age 70 or later, you get the maximum 42% increase.
Qualifying for CPP
Eligibility for CPP is determined by your age and your contributions. To be eligible to receive the CPP benefits, you must meet the following:
- Be at least 60 years old
- Have made at least one contribution to the CPP
The contributions can either come from being employed in Canada, or from credits from a former spouse or common-law partner when the relationship ended.
Determining CPP Payments
The table below shows the various CPP pensions and benefits and the monthly and maximum payment amounts from January to December 2025.Â
| Type of pension or benefit | Average amount for new beneficiaries (October 2024) | Maximum payment amount (2025) |
| Retirement pension (at age 65) | $808.14 | $1,433 |
| Post-retirement benefit (at age 65) | $16.01 | $47.82 |
| Disability benefit | $1,186.40 | $1,673.24 |
| Post-retirement disability benefit | $583.32 | $598.49 |
Calculating your CPP payments
To calculate your CPP payment amounts, several factors are taken into account:
- The age you decide to start receiving your pension benefits
- How much you have contributed to the CPP
- How long you have made contributions to the CPP
- Your average earnings while you were employed
You can sign in to your My Service Canada Account to obtain an estimate of your monthly CPP retirement pension payments. You can also use the Canadian Retirement Income Calculator to estimate your retirement income from different sources.
How much you can receive
- For 2025, the maximum CPP payment amount you can receive if you start your pension at 65 is $1,433.Â
- New retirees (age 65) received an average monthly amount of $808.14 as of October 2024.Â
Applying for CPP Retirement Pension
If you pass the eligibility criteria, you can proceed to apply for the CPP benefit. First, you’ll need to decide when you want your pension to start:
- As soon as you qualify
- At age 65 (one month after you turn 65)
- At a later date of your choice
You can apply through a paper application or online. To apply using a paper application, download the application form. Complete it and mail it to Service Canada, or drop it off at a Service Canada office.
To apply online, register for an account at My Service Canada Account (MSCA). A personal access code will be provided to you to complete your registration.
After you submit your application, you’ll immediately receive confirmation that your application has been received and is for assessment. You’ll receive a notice of the decision by mail within 20 days.
Situations that can affect your CPP payment amount
The following situations can affect the CPP payment amounts you receive. These are automatically considered when your CPP retirement pension amount is calculated, provided you have included the information in your application.
- Working while receiving the CPP benefit
If you’re under age 70, you can choose to continue working while receiving your CPP retirement pension and keep contributing to the plan.
Every year you contribute to the CPP is an additional benefit post-retirement and a higher retirement income. You’ll automatically receive the benefit the following year and for the rest of your life. All contributions stop at age 70.
- Periods of low or no earnings
In the calculation of your CPP retirement pension, the lowest earnings from up to 8 years of your earnings history will not be included. This exclusion will result in a higher pension amount for you.
- Divorce or separation
If you have separated or divorced from your wife or common-law partner, your CPP contributions will be split equally between you two.
Managing Your CPP Payments
Once your application for the CPP benefits is approved, your CPP payments will be directly deposited to your bank account every month. If you choose to receive it by cheque, it will be mailed to you within the last three business days of each month.
Payment Dates
The CPP payment dates are as follows:
- January 29, 2025
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
Taxes
Since CPP retirement pensions are considered as income, they are taxable. You can choose to have your income tax deducted from your monthly payments through your My Service Canada account, or you can pay your income tax each quarter.
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