The Canada Pension Plan (CPP) is one of the primary sources of retirement income for seniors in Canada and aims to supplement part or all of their income when they retire.
However, Canadians and their employers must contribute to the Canada Pension Plan (CPP) while working to receive the CPP in their retirement age.
What Is the Canada Pension Plan (CPP)?
The Canada Pension Plan (CPP) is a taxable monthly benefit paid to retiring seniors in Canada to help supplement their retirement income. The pension serves as a reward for Canadian seniors who have worked throughout their lives and contributed to the Canada Pension Plan (CPP).
If you live in Quebec, the Canada Pension Plan (CPP) equivalent is the Quebec Pension Plan (QPP).
Apart from the Canada Pension Plan (CPP) retirement pension, Canadian seniors can also receive other benefits from the Canada Pension Plan (CPP), such as the following:
- CPP post-retirement benefit
- CPP disability pension
- CPP post-retirement disability benefit
- CPP survivor’s pension
- CPP children’s benefit
- CPP death benefit
CPP Post-retirement Benefit
The CPP post-retirement benefit is paid to Canadian seniors under 70 who receive the CPP retirement pension while still working. You may continue contributing to the Canada Pension Plan (CPP) while working. Your contributions will go towards increasing the pension amount you’ll receive when you retire.
CPP Disability Pension
You may be qualified to receive the CPP disability pension if you are under 65 years old and have a disability or medical condition that impairs your ability to work and earn a living. However, you must have made enough valid contributions to the Canada Pension Plan (CPP).
CPP Post-retirement Disability Benefit
If you developed a disability after receiving the CPP retirement pension, you might be qualified to receive the CPP post-retirement disability benefit. However, you must have received the CPP retirement pension for over 15 months.
CPP Survivor’s Pension
The CPP survivor’s pension is a monthly benefit payment made to a deceased CPP contributor’s legal spouse or common-law partner.
CPP Children’s Benefit
Children of disabled or deceased CPP contributors may be eligible to receive the monthly CPP children’s benefit payment. They may receive either:
- A disabled contributor’s child’s benefit or
- A surviving child’s benefit.
CPP Death Benefit
The CPP death benefit is a one-time benefit fit payment made to the eligible family members of a deceased CPP contributor.
CPP Payment Dates 2022
You’ll receive your CPP payments monthly if you’re eligible for the Canada Pension Plan (CPP). The Canada Pension Plan (CPP), Old Age Security (OAS) pension, and the Guaranteed Income Supplement (GIS) payments are made on the same dates. So, if you’re qualified for any of the three programs, you can expect your benefit payments on the same dates.
The Canada Pension Plan (CPP) payment dates for 2022 are as follows:
- January 27, 2022
- February 24, 2022
- March 29, 2022
- April 27, 2022
- May 27, 2022
- June 28, 2022
- July 27, 2022
- August 29, 2022
- September 27, 2022
- October 27, 2022
- November 28, 2022
- December 21, 2022
The CPP payments are made towards the end of each month.
You can sign up for direct deposit to receive your CPP payments directly into your bank account on the payment dates. You can also choose to receive your payments by cheque via mail. Your cheques will be mailed out on the payment dates, and depending on the mail service operating in your area, your payments may arrive later.
However, if your CPP payment is late, you’re advised to wait for about a week after the payment date before contacting Service Canada.
CPP Eligibility Requirements
To be qualified to receive the CPP retirement pension, you must meet the following eligibility criteria:
- You must be 60 years or older.
- You must have made one or more valid contributions to the Canada Pension Plan (CPP).
You can make valid contributions from your employment income from working in Canada or from credits received from your previous spouse or common-law partner at the end of the relationship.
How Much Can You Receive for CPP?
The amount you may receive for any of the Canada Pension Plan (CPP) benefits depend on the following:
- The contributions you have made to the CPP and for how long you have contributed.
- The average employment income you earned throughout your working life.
- The age you choose to start receiving CPP benefit payments.
Depending on your situation, if you meet the eligibility conditions in 2022 as a new recipient at 65 years, you may receive the following:
- An average pension amount of $727.61 each month.
- A maximum CPP amount of $1,253.59 every month
If you’re eligible for any CPP benefit as of January 2022, the average and maximum CPP amounts you may receive monthly are as follows:
|CPP Benefit||Average CPP Benefit Amount for New Recipients||Maximum CPP Benefit Amount for New Recipients|
|CPP retirement pension (at 65 years)||$727.61||$1,253.59|
|CPP post-retirement benefit (at 65 years)||$16.05||$36.26|
|CPP disability benefit||$1,053.20||$1,464.83|
|CPP post-retirement disability benefit||$524.64||$524.64|
|CPP survivor’s pension (below 65 years)||$466.88||$674.79|
|CPP survivor’s pension (65 years and older)||$319.34||$752.15|
|CPP disabled contributor’s child’s benefit||$264.53||$264.53|
|CPP surviving child’s benefit||$264.53||$264.53|
|CPP death benefit||$2,496.25||$2,500.00|
|Combined survivor’s and retirement pension (at 65 years)||$929.31||$1,257.13|
|Combined disability benefit and survivor’s pension||$1,133.84||$1,467.04|
The Canada Pension Plan (CPP) has a pension-sharing and credit-splitting mechanism that allows you to split your CPP payment amount with your spouse or common-law partner.
If you applied for the Canada Pension Plan (CPP) after you turned 65, you’d be able to receive retroactive CPP payments for up to 12 months (that is, 11 months plus the month you applied for the benefit).
Can You Work While on CPP?
You can work while receiving the Canada Pension Plan (CPP) retirement pension. The amount you earn while working won’t affect your benefit amount.
If you’re below 70, you can choose to keep contributing to the CPP while working till you turn 70. The contributions you make will go towards increasing your CPP post-retirement benefit.
You’ll automatically receive CPP post-retirement benefit payments the following year for the rest of your life.
When to Start Receiving Your CPP Payments
The typical age to start receiving your Canada Pension Plan (CPP) benefit payments is 65 years. However, you can choose to begin your CPP benefit payments at age 60. You can also choose to delay payments till you turn 70.
You’ll receive a smaller benefit if you start receiving your CPP payments at 60. However, if you delay your CPP benefit payments until you turn 70, you’ll receive a higher monthly benefit amount.
You’ll receive the maximum monthly amount if you wait till you turn 70 to receive your CPP payment.
How to Apply for the CPP
Unlike the Old Age Security (OAS) pension, Service Canada will not automatically enroll you in the Canada Pension Plan (CPP) when you turn 65, hence, you’ll have to apply for the benefit yourself.
Service Canada advises that you should apply for the CPP in advance so that you’ll receive your benefit payments on the date you choose.
You can also apply for the Canada Pension Plan (CPP) using a paper application. To apply using a paper application:
- Download and print out the CPP application form.
- Add the relevant supporting documents.
- Mail the form to Service Canada or submit it at the nearest Service Canada office.
However, before applying for the Canada Pension Plan (CPP), ensure that you meet the following eligibility conditions:
- You must be at least 60 years old.
- You must have made one or more valid contributions to the Canada Pension Plan (CPP).
Is CPP Taxable?
The Canada Pension Plan (CPP) is a taxable benefit and you’ll have to pay taxes on the CPP income you receive.
You can request online, by mail, or by visiting any Service Canada office that the Canada Revenue Agency (CRA) deducts the taxes automatically from your CPP income.
If you receive the Canada Pension Plan (CPP) benefits while living abroad, a non-resident tax will be deducted from your CPP payment amount. The non-resident tax will be deducted at 25% or lower, depending on if there is a tax treaty between your country of residence and Canada.
CPP Payment Dates FAQs
Is It Better To Collect CPP at 60 or 65?
If you collect Canada Pension Plan (CPP) benefit payments at 60, you’ll receive a lower monthly benefit amount than you would if you started receiving CPP benefits at 65 years. You can also choose to delay your CPP benefits till you turn 70 to receive the maximum CPP benefit amount.
Can You Collect CPP at 60 If You Are Still Working?
Yes, you can receive the CPP retirement pension if you’re 60 and still working. You can also keep contributing to the Canada Pension Plan (CPP) to fund and increase your CPP post-retirement benefit.
How Long Can You Collect CPP?
You can collect Canada Pension Plan (CPP) benefits for the rest of your life if you meet the CPP benefits eligibility requirements.
Can I Receive CPP Outside of Canada?
Yes, you can receive the Canada Pension Plan (CPP) while outside Canada. If you made at least one valid contribution to the Canada Pension Plan (CPP), you’d receive a benefit payment regardless of your country of residence.
The Canada Pension Plan (CPP) makes monthly taxable benefit payments to eligible retired Canadian seniors to supplement some of their retirement finances.
You can decide to receive your payments when you’re 60. However, you’ll receive a smaller amount, or you can receive it when you’re 65 to receive a higher amount. You’ll receive the maximum amount if you defer your payments till you turn 70.
You can choose to receive your CPP payments by direct deposit into your Canadian bank account or by cheque via mail.