The Canada Pension Plan (CPP) is a key part of retirement income for Canadian seniors. As of 2025, eligible retirees can receive up to $1,700 per month when combining CPP with other government benefits such as Old Age Security (OAS). However, the exact amount you receive depends on factors like your work history, contribution level, and when you choose to start collecting benefits.
This guide covers everything you need to know about CPP payments in 2025, including eligibility, how to apply, payment schedules, and additional benefits that may be available to you.
Canada Pension Plan (CPP)
The CPP is a government-managed pension program designed to provide financial support to retired, disabled, or surviving spouses of deceased contributors. It is funded by mandatory payroll contributions from working Canadians, with benefits paid out upon retirement.
In 2025, the maximum monthly CPP payment at age 65 is $1,433.00. However, delaying payments until age 70 can increase the benefit due to the delayed retirement credit. When combined with OAS, seniors can receive a total of up to $1,700 per month in government retirement benefits.
How Much Will You Receive?
CPP payments vary based on several factors, including your years of contributions, earnings history, and when you start collecting.
CPP Payment Amounts (2025)
| Age to Start CPP | Maximum Monthly Payment | Increase/Reduction |
|---|---|---|
| 60 years old | ~$925 | Reduced by 36% (0.6% per month before 65) |
| 65 years old | $1,433 | Standard full payment |
| 70 years old | ~$2,035 | Increased by 42% (0.7% per month after 65) |
The average CPP payment for Canadians in 2025 is around $1,100 per month, as most individuals do not contribute the maximum amount required to receive the full benefit.
Eligibility Criteria
To qualify for CPP, you must meet specific requirements:
Age Requirement
- You can start receiving CPP as early as age 60, but monthly benefits will be lower.
- If you wait until age 65, you receive the standard benefit.
- Delaying to age 70 increases payments by 42%.
Contribution Requirements
- You must have worked in Canada and contributed to CPP through payroll deductions.
- The amount you receive is based on your total contributions.
- In 2025, the maximum pensionable earnings are $66,600, meaning contributions are only deducted up to this amount.
Work History
- To receive the maximum CPP benefit, you must have contributed at or near the maximum level for at least 39 years.
- Those with fewer years of contributions will receive a lower amount.
Residency Status
- You do not need to be living in Canada to receive CPP, but you must have contributed while working in Canada.
- Permanent residents and some temporary workers may also qualify if they contributed.
How to Apply for CPP
Applying for CPP should be done at least 6 months before you want to start receiving payments.
Step 1
Log in to My Service Canada Account (MSCA) to view your contribution history and estimated CPP payments.
Step 2
Consider your financial needs, expected lifespan, and potential tax implications before choosing when to begin payments.
Step 3
- Apply online through My Service Canada Account (faster processing).
- Apply by mail using a paper application (slower processing).
- Visit a Service Canada office for in-person assistance.
Step 4
Processing times vary, but once approved, you will receive a confirmation letter outlining your payment amount and start date.
CPP Payment Schedule
CPP payments are issued on the last business day of each month. If the payment date falls on a weekend or holiday, it may be issued earlier.
CPP Payment Dates for 2025
| Month | Payment Date |
|---|---|
| January | January 29 |
| February | February 26 |
| March | March 31 |
| April | April 29 |
| May | May 30 |
| June | June 27 |
| July | July 30 |
| August | August 29 |
| September | September 26 |
| October | October 30 |
| November | November 28 |
| December | December 23 |
You can receive payments via direct deposit or by mailed cheque (direct deposit is faster and more secure).
Additional CPP Benefits
If you become disabled before retirement, you may qualify for CPP Disability Benefits, which provide financial support until you reach retirement age.
Survivor Benefits
Spouses or common-law partners of deceased CPP contributors may be eligible for survivor benefits, which provide monthly payments based on the deceased person’s contributions.
Child Benefits
Dependent children of disabled or deceased CPP contributors may receive monthly child benefits until they turn 18 (or 25 if in full-time education).
Taxation of CPP Benefits
CPP payments are taxable income, meaning they will be included in your annual tax return. You may choose to have taxes deducted at source to avoid owing money at tax time.
To reduce your tax burden, you may also consider splitting your CPP income with your spouse. This can be beneficial if one partner earns significantly more than the other.
How to Track Your CPP Payments
- Log into My Service Canada Account to check your payment status, update personal details, or request changes.
- Contact Service Canada if you experience delays or issues with your payments.
The Canada Pension Plan is a key source of income for Canadian seniors. Knowing how CPP works, when to apply, and how much you may receive can help you make informed financial decisions for your retirement.
If you are nearing retirement, check your CPP contribution history, decide on the best time to apply, and ensure your application is submitted early to avoid delays.
FAQs
When should I apply for CPP?
Apply at least 6 months before you want to start receiving benefits.
What is the maximum CPP payment in 2025?
The maximum monthly payment at age 65 is $1,433.00.
Can I receive CPP if I live outside Canada?
Yes, as long as you contributed while working in Canada.
Is CPP income taxable?
Yes, CPP payments are considered taxable income in Canada.
Can I increase my CPP payments?
Yes, by delaying CPP until age 70, your payments increase by up to 42%.
