What Is the Canada Pension Plan (CPP)?
The Canada Pension Plan (CPP) is a government-run program designed to provide monthly retirement income to eligible Canadians. Funded through mandatory paycheck deductions during your working years, CPP benefits become accessible once you retire, generally starting at age 60.
The amount you receive is based on your past contributions, the age you begin collecting benefits, and other influencing factors such as work history and special life circumstances.
Table of Contents
Who Qualifies for CPP Benefits?
Minimum Requirements for Eligibility
To qualify for CPP retirement benefits, you must:
- Be at least 60 years old
- Have made at least one valid contribution to the CPP during your working years in Canada
CPP Credit Splitting After a Relationship Ends
If you’ve gone through a divorce or separation from a common-law partner, you may be eligible to split CPP credits. This can boost your benefit amount by redistributing past contributions between both parties.
When and How to Start Receiving CPP
Choosing the Right Age to Begin Payments
You can start collecting CPP between the ages of 60 and 70. Here’s how timing affects your payments:
- Starting at 60: You’ll receive a smaller monthly amount
- Waiting until 70: You’ll get a higher monthly payment for life
Applying for CPP
The fastest way to apply is online through your My Service Canada Account. You also have the option to apply using paper forms, which can be submitted by mail or in person at a Service Canada location.
How CPP Payments Are Calculated
Key Factors That Influence Your CPP Payment
- Start Age: Payments increase the longer you wait, up to age 70
- Lifetime Contributions: Higher contributions during your career lead to larger monthly payments
- Post-Retirement Contributions: If you continue working after starting CPP (before age 70), you may qualify for the Post-Retirement Benefit
- Special Circumstances: Child-rearing periods, disabilities, or low-income years can adjust your benefit amount
To get a personalized estimate, use the Retirement Income Calculator on the Service Canada website.
How Much Will You Receive in April 2025?
Maximum and Average CPP Payment Amounts
- Maximum Monthly Payment at Age 65 (2025): $1,433
- Average Monthly Payment (New Recipients at 65): Around $900
Your actual amount depends on how much and how long you contributed to the plan during your working life.
Taxation and CPP: What You Need to Know
Are CPP Payments Taxable?
Yes, CPP payments are considered taxable income in Canada. However, taxes are not automatically deducted unless you request it.
- You can set up tax deductions through your My Service Canada Account
- Alternatively, file a paper request for deductions
- If no deductions are made, you may need to pay quarterly installments to avoid owing at tax time
For Non-Residents
If you live outside Canada, a non-resident tax is automatically withheld from your monthly CPP payment.
Understanding the Quebec Pension Plan (QPP)
Quebec runs its own version of the CPP, known as the Quebec Pension Plan (QPP). If you worked in Quebec, your retirement payments come from QPP instead.
Canadians to Receive $1,433 CPP Payment on April 28, 2025 Who’s Eligible and What to Know
Is the $650 + $750 CPP Payment Boost for Canadian Seniors Real in 2025? Here’s What You Need to Know
Worked in both Quebec and other parts of Canada? No worries—your contributions are coordinated between the CPP and QPP systems, and your benefits reflect your entire work history.
- QPP April Payment Date: April 30, 2025
CPP Payment Dates for the Rest of 2025
Make sure your direct deposit details are current so there are no delays. Here are the scheduled CPP payment dates for the remainder of 2025:
| Month | Payment Date |
|---|---|
| April | April 28, 2025 |
| May | May 28, 2025 |
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Final Thoughts: Stay Informed, Stay Prepared
The Canada Pension Plan is a key part of retirement for millions of Canadians. By understanding when and how much you’ll receive—and ensuring your personal information is current with Service Canada—you can better manage your monthly budget and enjoy greater peace of mind during your retirement years.