CPP Payments: How Much Will You Receive From Canada Pension Plan

CPP Payments: How Much Will You Receive From Canada Pension Plan

Canada Pension Plan (CPP) benefits can make up a key portion of your income in retirement. Individuals receiving the maximum CPP payments at age 65 can expect to collect more than $15,000 per year in benefits.

The amount of your CPP payments depends on two factors: how much you contributed, and how long you made contributions. Most don’t receive the maximum benefit. In fact, the average amount for new CPP beneficiaries is just $8,433 per year (as of October 2021).

CPP Payments 2022

The table below shows the monthly maximum CPP payment amounts for 2022, along with the average amount for new beneficiaries:

Type of pension or benefitAverage amount for new CPP beneficiaries (October 2021)Maximum payment amount (2022)  
Retirement pension (at age 65)$702.77$1,253.59
Disability benefit$1,050.29$1,457.45
Survivor's pension - younger than 65$461.51$674.79
Survivor's pension - 65 and older$307.55$752.15
Death benefit (one-time payment)$2,500$2,500
Combined benefits
Combined survivor's and retirement pension (at age 65)$895.43$1,257.13
Combined survivor's pension and disability benefit$1,121.66$1,467.04

Now, you may not have a hot clue how much CPP you will receive in retirement, and that’s okay.

The good news is that the government does this calculation for you on an ongoing basis. This means that you can find out how much money the government would give you today, if you were already eligible to receive CPP. This information is available on your Canada Pension Plan Statement of Contribution. You can get your Statement of Contribution by logging into your My Service Canada Account, which – if you bank online with any of the major banks – is immediate.

Related: CRA My Account – How to check your tax information online

If you’d prefer to send your personal information by mail you can request a paper copy of your Statement of Contribution sent to you by calling 1.877.454.4051, or by printing out an Application for a Statement of Contributions from the Service Canada Website.

Note that the information available to you on your CPP Statement of Contribution may not reflect your actual CPP payments. That’s because it doesn’t factor in several variables that might affect the amount you’re entitled to receive (such as the child-rearing drop-out provision). The statement also assumes that you’re 65 today, which means that later years of higher or lower income that will affect the average lifetime earnings upon which your pension is based aren’t taken into consideration.

CPP is Indexed to Inflation

Canada Pension Plan (CPP) rate increases are calculated once a year using the Consumer Price Index (CPI) All-Items Index. The increases come into effect each January, and are legislated so that benefits keep up with the cost of living. The rate increase is the percentage change from one 12-month period to the previous 12-month period.

CPP payments were increased by 2.7 percent in January 2022, based on the average CPI from November 2020 to October 2021, divided by the average CPI from November 2019 to October 2020.

Note that if cost of living decreased over the 12-month period, the CPP payment amounts would not decrease, they’d stay at the same level as the previous year.

CPP Payment Dates

CPP payment dates are scheduled on a recurring basis a few days before the end of the month. This includes the CPP retirement pension and disability, children’s and survivor benefits. If you have signed up for direct deposit, payments will be automatically deposited in your bank account on these dates:

All CPP payment dates 2022

  • 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

Why Don’t I Receive The CPP Maximum?

Only 6% of CPP recipients receive the maximum payment amount, according to Employment and Social Development Canada. The average recipient receives about 56% of the CPP maximum. With that in mind, it’s best to lower your CPP expectations when calculating your potential retirement income.

Why don’t more people receive the maximum? Well, because it requires 39 years of CPP contributions at the maximum level to get the biggest possible benefit in retirement. That means you need a salary that meets or exceeds the yearly maximum annual pensionable earnings threshold, which in 2022 is $64,900.

  • Year       YMPE
  • 2022      $64,900
  • 2021      $61,600
  • 2020      $58,700
  • 2019      $57,400
  • 2018      $55,900
  • 2017      $55,300
  • 2016      $54,900
  • 2015      $53,600
  • 2014      $52,500
  • 2013      $51,100
  • 2012      $50,100

Plenty of variables affect your ability to earn the maximum CPP benefits. Maybe you joined the work force late, dropped out for a period of time, or retired early.

Related: When Should Early Retirees Take CPP?

Low income earners may not hit the YMPE level often enough to get the highest possible CPP retirement benefit. Business owners who choose to pay themselves dividends don’t need to contribute to CPP, but that means they won’t be eligible to receive benefits either.

When To Take CPP?

Perhaps the most common question about CPP is when to take it. The standard age to take CPP is at age 65. But, Service Canada will proactively send out a notice a few months before your 60th birthday advising you that you’re eligible to apply for CPP and giving you an estimate of your expected CPP payments.

You can take a reduced CPP payment starting as early as age 60. If you do elect to take CPP early, you’ll receive 0.6% less for every month you receive it before age 65. That means, for those taking CPP at age 60, a reduction in their CPP payments by 36%. Reductions aside, there could be good reasons to take CPP early – namely if you need the income sooner than 65, or if you expect to have a reduced life expectancy.

Conversely, you can enhance your CPP payments by deferring your pension up until age 70. The advantage of waiting is you’ll receive a 0.7% increase for every month you defer CPP past age 65. Taking CPP at age 70 results in a 42% enhancement to your pension. The biggest reason to defer CPP is to protect against longevity risk – the risk of outliving your money. The trade-off is using your own personal savings to tide you over until the enhanced CPP payments kick-in later in life.

Note there is no benefit to defer CPP beyond age 70, so get your CPP application in on time to avoid delays.

Final Summary

CPP is a complicated system but one that is crucial to retirement planning for many Canadians. It’s important to understand how much CPP you will receive in retirement, and to know how difficult it is to receive the maximum CPP payments. Most CPP beneficiaries receive much less than the maximum, with the average being around 60 percent – so that’s good to know going into your retirement income planning.

You can find out an estimate of your CPP benefits by looking at your Statement of Contribution online at your My Service Canada Account, or request a paper copy by calling Service Canada.

CPP payments are indexed to inflation, with the latest increase going up by 2.4%. CPP payment dates are scheduled toward the end of every month and automatically deposited into your bank.

Finally, a big consideration is when to take CPP and how the payments fit into your retirement plan. Do you expect to live a long life? Will you work until age 65? Do you have sufficient personal savings to last until your CPP payments kick-in? Will you take CPP at age 65, or elect to take your pension earlier or later?

Readers: How does CPP fit into your retirement income plan?

Print Friendly, PDF & Email


  1. sam on August 22, 2019 at 1:32 pm

    This is the most mind spinning article, why these important issues needs to be so complex for common person to understand.

  2. Frito on August 22, 2019 at 4:40 pm

    I read somewhere recently that if you don’t apply by 70 you can’t get ANY benefits at all. Is that correct?

    • Aaron on August 22, 2019 at 10:08 pm

      No that is not true. But you may forego benefits if you wait too long. For example, if you apply at 75 you won’t get 5 years of back payments. But nothing would prevent you from applying at 75.

      • Frito on August 23, 2019 at 8:52 am

        Thanks! Maybe it was articles posted when the changes were announced earlier this year that made comments about past problems they were trying to address that stuck in my head. It’s a constant battle trying to keep on top of everything!

  3. Frito on August 22, 2019 at 11:06 pm

    The thing that bothers me most is that at any moment any government can decide to change all the rules (ie change retirement age to 67) and people have to scramble to adjust their retirement calculations/expectations. I’m 59 and have pretty much decided to take CPP at 70 but who knows what the rules will be in 10 years?

    • Robb Engen on August 24, 2019 at 12:12 pm

      Hi Frito, typically these changes would be phased-in so it would not go into effect for 10 years or so. That’s what the Harper government did in the 2012 budget when it proposed that OAS benefits start at 67 instead of 65. This proposal wouldn’t go into effect until 2023 – although moot now because the federal liberals cancelled it.

      I can’t imagine a government alienating seniors by making immediate and sweeping changes to CPP or OAS.

      • Jason Kaye on January 26, 2021 at 11:16 am

        Hi Robb when Harper proposed the change to OAS I emailed his office saying that I am on LTD to goes till 65 so for 2 years my income would drop by close to $600/mo.
        They replied saying how important it was to do this and to talk to my insurance company so I did and was told by them when my claim started it paid to 65 so no help there.
        This shows how important it is to build your own savings be it the RRSP, RDSP(for the disabled), TFSA and Investments as you never know what will happen in the future.

    • evelyn on May 31, 2021 at 4:39 pm

      My accountant advise taking it when you turn 60 as who knows if there will be anything left in the future.

      • Frito on May 31, 2021 at 11:47 pm

        Old style thinking IMO.

    • Ace on May 10, 2022 at 8:34 am

      No, not “any” government can make any changes (let alone “all the rules”) at “any” time. Changes to the CPP require agreement between the federal government and the governments of at least two thirds of the provinces representing two thirds of the Canadian population (except Quebec, which is not part of the CPP). It is therefore very difficult to make changes and often takes years of negotiations. As any changes are fraught with political fallout if they are unpopular, so far in the history of the program the only changes that have been made have been to improve it for pensioners or to ensure that it is sustainable, which is also in pensioners’ best interest. So rest easy on that. OAS is controlled by the federal government alone. The change to age 67 was meant to preserve the program. When Trudeau rolled the age back to 65 he put the OAS in jeopardy and doubled-down with the 10% bonus to seniors 75 and up. It is possible OAS will undergo unwelcome changes in the next 10 years, but more likely is that taxes will simply be increased to cover the shortfall.

  4. Monica on August 23, 2019 at 6:52 am

    Wondering if anyone has insight into the CPP survivor benefits? My husband & I are both 61, and plan to wait at least 2-3 more years before applying for CPP however, I have heard that if a person has not applied and God forbid, one spouse dies, it greatly affects the benefits for the surviving spouse?

    • Robb Engen on August 24, 2019 at 12:17 pm

      Hi Monica, that is not true. According to Service Canada:

      The amount you receive as a surviving spouse or common-law partner will depend on:

      -Whether you (the survivor) are younger or older than age 65
      -How much, and for how long, the deceased contributor has paid into the CPP

      If the survivor is under age 65 then he/she will receive a flat rate portion plus 37.5% of the contributor’s retirement pension.

      Another item of note is that you should apply as soon as possible after the contributor’s death. If you delay, you may lose benefits. The Canada Pension Plan can only make back payments for up to 12 months.

  5. Mike on August 23, 2019 at 9:38 am

    I tried to get through to Service Canada, gave up after 25 minutes on hold. Their website is also not incredibly user-friendly

    • Robb Engen on August 24, 2019 at 12:19 pm

      Hi Mike, yes – the complicated CPP system is further complicated by the lack of help on the phone and online.

  6. Diane on August 24, 2019 at 10:59 am

    Am I understanding this correctly? If one spouse passes away the other spouse gets the survivor’s pension plus their own CPP, but the maximum stays the same as the maximum for a single person. Example – Spouse 1 gets $950 CPP and spouse 2 gets $800 CPP, but if one of the spouses passes away, the other spouse can only get $1154.58 (2019 dollars), when I would think they should be entitled to the survivor’s pension (roughly $500+) and there own CPP ($800) for a total of $1,300.00+. Please tell me they would still get the $1,300+.

    • Robb Engen on August 24, 2019 at 12:23 pm

      Hi Diane, you are understanding it correctly – your benefit, even with a survivor’s pension, cannot exceed the CPP maximum for one individual. A baffling rule, but a rule nonetheless.

      Let’s say there’s a 3-4 year age difference between spouses and the older spouse dies at 65. In a situation like this, it could make sense for the surviving spouse to hold off on collecting his/her own CPP until 70 (thus getting more) and collecting the full survivor benefit up until then.

      • Diane on August 24, 2019 at 12:36 pm

        Thank you for the clarification. Wow! So if the first spouse waited until 70 to take their CPP (in an effort to leave more income for the other spouse), will the maximum be adjusted to reflect the 42% increase associated with waiting until 70 to start collecting CPP?

        • Robb Engen on August 24, 2019 at 1:46 pm

          Hi Diane, unfortunately – no.

          The 60% calculation for survivor benefits is done without regard to the adjustment for early or late start of CPP.

          So if someone is 65 with a CPP of $1,000 a month, the survivor benefit is $600/month. Now if the person waited until 70 for CPP, their benefit rises to $1,420 a month. But the survivor benefit is still $600/month.

          I asked Feed Vettese about this and he said:

          “This rule makes it a little less appealing to defer CPP since it doesn’t increase the survivor benefit, but it certainly isn’t a showstopper.”


          “There are a few more wrinkles but basically the survivor benefit is not an important reason to either defer CPP to 70 or to take it as early as possible. Besides the chances of dying between 60 and 70 are surprisingly small.”

      • Harrison on January 24, 2021 at 1:00 am

        Any comments on how RRSP payments may affect your CPP pension benefit??

  7. David on August 24, 2019 at 5:03 pm

    If someone decides to retire early, what effect will that have on their CPP? Will it be still advantageous to wait till 70 to collect if you are not creating a taxable income during the years 60-70? It seems CPP penalizes the early retired as they lose high earning years which reduces their pension amount. Do you know if the years 65 to 70 count towards your CPP earnings?

  8. christina on August 26, 2019 at 4:47 pm

    I had asked Dogger this (he is a past cpp employee/expert who hosts a thread on redflag deals and canadian money forum) and he has said it is still beneficial to defer as you are getting an extra percentage per year by deferring which offsets the amount taken off for drop out years. I imagine it would be highly individual though. I would post on his thread http://forums.redflagdeals.com/im-canada-pension-plan-cpp-expert-any-questions-1295017/

  9. Douglas Badger on August 28, 2019 at 8:34 am

    It’s good that this thread touches on the maximum survivor’s CPP pension. The ‘cap’ is not even known to most couples. Calculating the surviving spouse’s income becomes even more critical when you consider the departed spouse’s OAS stops and their private/employer pension is likely reduced by 40-50% for the survivor. We need a fuller discussion on the impact of being a surviving spouse!

  10. Christine Comrie on September 29, 2019 at 9:09 pm

    Is the September 26 CPP payment for the month of September or October?

    • Stuart on December 29, 2021 at 9:42 am

      September. CPP & OAS alsways pay at the end of the month.

  11. Sandy on September 30, 2019 at 10:32 am

    My husband retired at 55 and has not made any further payments to the CPP Plan – we are living and working abroad now (as non-residents). He was planning to wait to 65 to take the CPP because we don’t need the income right now. I’m interested in your comment about calculating CPP based on the best 39 vs. 35 years – what about the penalty for taking it 5 years early? How can we calculate the difference?

    • annie on March 7, 2022 at 8:53 am

      Hi Sandy, I am in the similar situation of your husband. retired at age 55 and do not need the money. Is it better to wait until age 65 or even later. or should we take at age 60. Have you got any answer from anyone. Thank you

      • Sandy on March 7, 2022 at 12:08 pm

        I didn’t receive a reply.

      • Robb Engen on March 7, 2022 at 12:39 pm

        Hi Annie, you’ll always get more CPP by deferring. That’s because the credit you get for waiting is larger than the penalty for having more zero years of contributions (does that make sense?).

        I highly recommend visiting http://www.cppcalculator.ca and running your CPP estimate at different ages. If you have a complex scenario, I highly recommend contacting the site owner Doug Runchey to run your own personal calculations. He charges a nominal fee but guarantees his estimates are accurate. I’ve had clients use his service and have seen the reports he generates. Well worth it.

  12. Linda Isber on November 7, 2019 at 11:57 am

    Hi, I am 56 and have been living and working in the US since I was 30, therefor not contributing to CCP. (Still CDN, just a US resident, paying all taxes here) I was once told that I will not qualify to receive any CCP benefits as you need so many working years after turning 18, and I only have 12 at the max. If this is true, do I qualify to get my contributions returned at least?

  13. maria on November 13, 2019 at 10:22 pm

    Hi just want to know when the wife is retire at 66 and don’t get the full cpp payment because her husband still working and what is going to happen if husband retire at the age of 60 is wife gets full pension and husband will get what kind of cpp payment. husband has been contributes the maximum cpp deductions .

  14. Trevor Cole on April 26, 2020 at 9:42 am

    Coming to this late but I hope you’ll still be able to answer. I understand that my pension will rise 0.7% for every month I delay taking CPP after 65. But how is inflation factored into calculations? If I delay till age 70, are the .7% monthly increases based on the original CPP at 65, or on the inflation-corrected amount? If I’m 60 now, how can I guesstimate what my CPP payments will be 10 years in the future? (At the moment, I’m taking the amount the government says will be my payment at 70 and applying 10 years worth of approximate inflation increases.)

    • Robb Engen on April 26, 2020 at 9:49 am

      Hi Trevor, CPP rate increases are calculated once a year using the Consumer Price Index (CPI). They come into effect each January. These increases are legislated under the Canada Pension Plan so that benefits keep up with the cost of living.

      Deferring CPP will give you a 0.7% increase each month on the inflation-adjusted amount.

      Try this free CPP Calculator for a solid estimate of your benefits starting at different ages: https://cppcalculator.com/

  15. Dee Uvanile on July 22, 2020 at 12:58 pm

    I believe you failed to mention that the Survivors pension is not $300. per month if the survivor has their own max CPP benefit. So don’t count on that when your partner passes.
    It can be as little as zero.

  16. JRR on October 25, 2020 at 8:36 am

    I am waiting to get my CPP :o) I have hit all the marks with 39 years at the max so I would assume I get the max. I am also going to defer taking it at 65, and wait till 66. My financial advisor doesn’t agree, but I like the 8.4 % pay rise. I may go another year, but again my finance guy is wary, saying I wont catch up till I am 83. I may not live that long, but I would like to get that pay bump.

  17. Pam Fines on January 4, 2021 at 12:48 pm

    I was always thinking I would make it to the maximum but I have to work to 64 for that to happen. Not sure that is in the plan as I was thinking I would like to be scaling back from work by 60 but we will see. Lots of people in my organization work up to 65 or later just because they like the work but that is another 20 years of work ahead of me if I make to 64.

    I guess when I am doing my retirement forecasting I shouldn’t plan on the full allotment of CPP. Deferring to 70 will make up some of that shortfall if I due retire early.

    I was talking to my Mom over the holidays and women in my family have a tendency to live well into their 90s so I guess hedging on waiting for CPP is probably best as income protection

  18. Martin Lyons on January 26, 2021 at 5:25 pm

    While the Government provides an estimate of an individual CPP, it does not provide any estimate for or even description of methodology for determining survivor payments. The calculations for this are even more complex when it involves spouses, both of whom receive CPP . The survivor payment is significantly less than one might expect. It is not as simple as just adding the two payments together with a cap at the maximum payment level. But the Government offers no assistance in providing estimates for planning purposes well in advance of the death of one spouse.

  19. Ken on February 2, 2021 at 1:32 am

    Ok I think I finally understand it….thank you.
    Essentially, this matter is beyond all understanding unless one is a professional financial auditor/statistician/ and actuary, and even then the only one sure thing is that our politicians will receieve a huge pension for life after five years of service.

  20. Maggie on February 2, 2021 at 8:27 pm

    If I collect CPP at 60 yrs and I am still working I’ve been told you when you set up your Service Canada CPP that you should have them deduct the taxes off of each month so you don’t pay when filing your income tax. If that’s the case what % should you ask them to take off? Thanks!

  21. Michelle Kelly on February 19, 2021 at 11:58 am

    Hi is there trends posted of all the increase in cpp payments for the last 10 years. My financial advisor estimated 2% increase in cpp and oas payments for the next 25 years Is this realistic?

  22. Al Leiman on March 28, 2021 at 9:47 am

    I am 65 years of age and have reached my maximum 41 years of maximum CPP contributions and have elected not to collect my CPP until age 70. Also I will still be continuing to work until age 70. Therefore I must continue to be deducted CPP from my employer, therefore making contributions that will have no future/additional benefit because I cannot complete form 30 because I am still working and have not started collecting CPP.

    Is this correct and is there any way I can stop making contributions or am I wrong and by making CPP between age 65 to age 70 there will be an additional benefit. It’s Frustrating that I will be making $3050.00 per year in contributions times five years equals $15,250.00 with no additional CPP benefits.

    Can you clarify for me. Thanks so much

    • Greg on May 27, 2021 at 4:11 pm

      Once you reach 65 years or older You can elect to stop paying CPP by submitting form CPT30 to your employer as well as to CRA.

      • Hank on August 6, 2021 at 7:59 pm

        Only if you are collecting CPP benefits, I believe Al stated he does not plan to collect CPP until he is 70.

  23. Haorld Samson on April 6, 2021 at 10:56 am

    Does CPP pension work like a teacher’s pension i.e. based upon the last 5 years of teaching and so they can do a lot of overtime to be able to achieve a higher pension. Or, is it based upon the best 39 years or simply the average. The reason I am asking is that I am 69 self employed paying into CPP. Is there a big benefit for my CPP pension amount when I start collecting it in 2022 to pay myself at $61K salary for 2021 even though I have not done so for the past several years? Is it worth the extra $2500 in CPP costs for this final year as I was only paying myself about $30,000 in salary for the past few years? thanks

  24. John on October 12, 2021 at 9:25 pm

    I’ve done the calculations and at 60 with my best 35 years of contributions, I’m at 98.62% of the maximum. If I retire at the same time and don’t apply for cpp until I’m 65 I’ll be at 94.76 of the maximum because of a couple of bad years. My question is if I start collecting it at about 62 or 63 does it automatically go to 39 years of maximum contributions or would it be something in between? For example if I started collecting at 62 would that mean that I’d need 37 years on or near the maximum? I can’t find this information.

  25. David Davidson on May 5, 2022 at 1:33 pm

    I have 39 years of maximum CPP contributions and verified that with my CPP contribution statement. I reached the 39 years of maximum contributions in the year I turned 62 which was also the year I retired, though I was still 61 when I retired (I’m December born). I decided to defer taking my CPP to age 70, now with 18 months to go I am just about there. I assumed that as I had reached the 39 years of maximum CPP contributions mark I am entitled to the maximum enhanced CPP when I reach age 70 even though I haven’t worked or contributed since I retired . That is, with the 39 years at the maximum I have earned as much CPP benefit as I can and any further contributions would not get me a better CPP benefit AND that there was no downside to no longer contributing even though I had not yet reached 65. After reading this article I signed into My Service Canada Account and it says at age 70 will receive $1766.13 as my monthly CPP pension amount which is not quite the maximum ($1253.59 * 1.42 = $1780.10). It’s not a huge difference, only $167 a year, and I don’t expect you to be able to know why Service Canada calculates it the way they do but any thoughts on the discrepancy? I am a little mystified and wonder did I miss something?

    • Jambhala Caishen on May 10, 2022 at 8:11 am

      The maximum CPP benefit for 2022 which you referred to is for the enhanced CPP. Contributions were raised beginning in 2019 to pay for the enhancement. If you have not made CPP contributions in any of 2019, 2020, or 2021 then you are not entitled to the enhanced CPP payment (you put less in, you get less out). Your pension amount will therefore be lower than what is indicated as this year’s maximum.

      • David Davidson on May 10, 2022 at 9:00 am

        Thanks, I had forgotten about the new enhanced CPP contributions as that started after I left work. Makes sense to me now!

  26. Natalya on June 7, 2022 at 3:44 pm


    I have a certain question for you. I’m 67, is still working and postponed taking my CPP. I usually check my CPP at Service Canada website. I noticed that my CPP increases 0.7% every month which is understandable.
    But my CPP was not increased a single time due to inflation. The 2022 inflation rate of increase was 2.7% but I didn’t see it (1% in 2021). My amount from December 2021 to January 2022 was increased only 0.7% without taking the inflation rate into consideration.

    Would you be so kind to explain me the reason. Or it will be recalculated at the time of taking CPP? Same is with OAS.

    Thank you,

Leave a Comment

Join More Than 10,000 Subscribers!

Sign up now and get our free e-Book- Financial Management by the Decade - plus new financial tips and money stories delivered to your inbox every week.