CPP is a monthly pension based on how much you earned and contributed during your working years. You can start collecting between age 60 and 70. The earlier you start, the less you get each month. The later you start, the more you get for life.
CPP is federal, not provincial. You apply through Service Canada (a federal agency), not ServiceOntario. The two are often confused because both serve the public.
How CPP Works
Every time you earn employment or self-employment income in Canada, you and your employer each contribute to CPP. Those contributions build up over your working life and determine how much pension you receive when you retire.
CPP is mandatory for anyone earning more than $3,500 per year in employment or self-employment income
You need at least one valid contribution to qualify for a pension
Your pension is based on your average lifetime earnings compared to the yearly maximum pensionable earnings ($74,600 in 2026)
CPP is designed to replace about 25% of your pre-retirement earnings (rising to 33.33% for contributions made after the 2019 enhancement)
You receive CPP for the rest of your life. Payments never stop.
CPP is taxable income
In 2026, employees contribute approximately 5.95% of pensionable earnings (matched by the employer). Self-employed individuals pay both portions, totaling approximately 11.9%. A second contribution tier called CPP2 was introduced in 2024 for earnings above the regular maximum.
When to Start: The Big Decision
This is the most important CPP decision you will make. Once you choose a start date, the adjustment to your payment is permanent. You cannot change your mind later.
Start at age 60Reduced by 0.6% per month (36% less than age 65)~$964/mo max
Start at age 65Standard amount, no adjustment$1,507.65/mo max
Start at age 70Increased by 0.7% per month (42% more than age 65)~$2,141/mo max
Taking CPP early (age 60) may make sense if:
• You have health concerns and are unsure you will live well past 75
• You have stopped working and need the income to cover living expenses
• You have no other income source between age 60 and 65
• You want to invest the CPP payments rather than waiting
Waiting until 65 or 70 may make sense if:
• You are still working and earning a good salary
• You are in good health and expect to live past 80
• You have other income (RRSP, TFSA, employer pension) to bridge the gap
• You want the highest possible monthly income for the rest of your life
The break-even age is roughly 74 to 77. If you start at 60 instead of 65, you collect more total payments in the early years, but around age 74-77, the person who waited to 65 starts catching up because their monthly amount is higher. If you live past that break-even point, waiting pays off. If you do not, starting early pays off. Nobody knows the answer in advance.
How to Apply
When to apply: Apply 6 to 12 months before you want payments to begin. Your first payment arrives the month after your chosen start date. If you apply late, Service Canada can backdate your pension up to 12 months (but only if you were already eligible during that period).
Three ways to apply:
1Online (fastest): Sign in to your My Service Canada Account (MSCA) at canada.ca. Go to the CPP section and follow the prompts. You will need your SIN, banking information for direct deposit, and details about your marital status and any time spent outside Canada.
2By mail: Download form ISP-1000 (Application for Canada Pension Plan Retirement Pension) from canada.ca, fill it out, and mail it to Service Canada.
3By phone: Call Service Canada at 1-800-277-9914 (TTY: 1-800-255-4786) and request a paper application by mail.
What you need:
• Your Social Insurance Number (SIN)
• Your banking information for direct deposit (institution, transit, and account number)
• Your desired start date
• Information about your spouse or common-law partner (for pension sharing, if applicable)
• Details about any time lived or worked outside Canada
How Your Amount Is Calculated
To receive the maximum CPP, you would need to have contributed the maximum amount for approximately 39 years. Very few people do. The average CPP pension is $925.35 per month, which is about 61% of the maximum.
Your amount is lower if you had years with low earnings, took time off work (for school, caregiving, unemployment, or disability), worked part-time, or earned less than the yearly maximum pensionable earnings in some years.
CPP does provide some relief through "dropout" provisions. Years when you had low or no earnings because you were raising children under age 7, receiving a disability pension, or were a full-time student can be excluded from the calculation so they do not drag down your average.
Check your personal estimate: Sign in to My Service Canada Account and go to "View my CPP benefit estimates." This shows your projected pension based on your actual contribution history. It is the most accurate way to know what you will receive.
Working While on CPP
You do not have to stop working to collect CPP. If you are under 70 and still working while receiving your pension, both you and your employer continue contributing to CPP. These additional contributions earn you a Post-Retirement Benefit (PRB), which is a small additional monthly amount paid on top of your regular pension. The maximum PRB in 2026 is $54.69 per month.
If you are 65 to 70, CPP contributions are mandatory. If you are over 70, contributions stop automatically and you cannot earn any further PRBs.
CPP Pension Sharing With Your Spouse
If both you and your spouse or common-law partner are 60 or older, you can split your CPP pension payments for tax purposes. This shifts some of the higher-earning spouse's CPP income to the lower-earning spouse, which can lower your combined tax bill.
Pension sharing is not the same as pension splitting on your tax return (which is a separate CRA provision). CPP sharing reassigns the actual CPP payments so each spouse receives a portion. Contact Service Canada to set this up. Both spouses must apply.
Other CPP Benefits
CPP is not just a retirement pension. It also provides:
•Disability benefit: If you become severely disabled and cannot work regularly, CPP pays a monthly disability pension (maximum $1,606.78 in 2026). You must have contributed in recent years to qualify.
•Survivor's pension: When a CPP contributor dies, their spouse or common-law partner may receive a monthly survivor's pension. The amount depends on the survivor's age and whether they are already receiving their own CPP.
•Children's benefit: Dependent children of a disabled or deceased CPP contributor may receive a monthly benefit ($294.12 per child in 2026).
•Death benefit: A one-time lump sum payment of up to $2,500 to the estate of a deceased contributor.
CPP vs OAS vs GIS
💼 Canada Pension Plan
Up to $1,507.65/mo
Based on your work history and contributions. Start age 60 to 70. You must have contributed at least once. Taxable. Apply through Service Canada.
🏠 Old Age Security
Up to $743.05/mo
Based on how long you lived in Canada (not work). Start at 65. No contributions needed. Taxable. Most people auto-enrolled. Clawback above $90,997 income.
No. CPP requires at least one valid contribution from employment or self-employment income in Canada. If you never worked or only worked in Quebec (which has its own Quebec Pension Plan), you would not qualify for CPP. However, you may still qualify for Old Age Security, which does not require any work history.
Can I cancel my CPP and restart it later at a higher amount? +
You can withdraw your CPP application within 6 months of your first payment, but only once in your lifetime. After 6 months, your decision is permanent. You must repay all CPP amounts received (including any tax withheld). If you are past the 6-month window, you cannot cancel and restart.
I lived and worked in another country. Does that count toward CPP? +
Canada has social security agreements with more than 60 countries. If you contributed to another country's pension plan, those contributions may count toward your CPP eligibility (though not necessarily toward your payment amount). Check the full list of countries with agreements on canada.ca.
What happens to my CPP if I move out of Canada? +
You continue to receive CPP regardless of where you live. It is paid into your Canadian bank account by direct deposit or mailed as a cheque. A non-resident tax of 25% is withheld unless a tax treaty with your country of residence provides a lower rate.
Should I apply for CPP and OAS at the same time? +
Not necessarily. CPP and OAS are separate programs with different optimal start ages. Many financial planners recommend taking CPP at 60 or 65 (depending on your situation) but deferring OAS to 70 if you have other income to bridge the gap. Each decision should be evaluated independently based on your total retirement income plan.
How do I check my CPP contribution history? +
Sign in to My Service Canada Account at canada.ca. Under the CPP section, select "View my CPP contributions." This shows every year you contributed, the amounts, and your estimated pension at different start ages. Review it for accuracy. If you notice missing contributions, contact Service Canada to correct the record.
