What is the Canada Pension Plan ?
Key Facts of Canada Pension Plan
- After age 65, the Canada Pension Plan, the country's social security system, offers older or handicapped people a minimal level of lifetime income.
- The CPP mandates required pay-as-you-go contributions from all workers, including those who are self-employed, just like the U.S. Social Security system.
- Only individuals who are qualified, who apply, and whose applications are accepted by the government will receive benefits.
- CPP taxes total just over 5% of your take-home earnings. If you work for yourself, you must also pay the employer's share.
How Does the Canada Pension Plan Work ?
Canada Pension Plan Taxes
Who is Eligible for the Canada Pension Plan ?
- Be at least 60 years old
- Have made at least one valid CPP contribution
Working while on CPP Retirement Pension
How Much is Canada Pension Plan ?
- The age you decide to begin receiving a pension.
- How much and how long you made CPP contributions.
- Your average earnings throughout your working life.
- Maximum Monthly Amount: As of 2025, the maximum amount you can receive if you start your CPP at age 65 is about $1,306.57 per month. This amount may vary based on your average earnings during your working life and how long you've contributed to the plan.
- For those who start CPP early (at age 60), the monthly amount will be lower due to early pension reductions.
- For those who defer the pension until age 70, the amount can increase by up to 42% due to delayed retirement credits.
How Much Does CPP Cost Per Month ?
Type of pension
or benefit |
Average amount
for new beneficiaries (October 2024) |
Maximum
payment amount (2025) |
Retirement pension (at age 65) |
$808.14 |
$1,433.00 |
Post-retirement benefit (at age 65) |
$16.01 |
$47.82 |
Disability benefit |
$1,538.67 |
$1,673.24 |
Post-retirement disability benefit |
$583.32 |
$598.49 |
Survivor's pension – younger than 65 |
$527.91 |
$770.88 |
Survivor's pension – 65 and older |
$325.64 |
$859.80 |
Children of disabled or deceased contributor benefit –
under age 18 |
$294.12 |
$301.77 |
Children of disabled or deceased contributor benefit –
full-time student |
$294.12 |
$301.77 |
Children of disabled or deceased contributor benefit –
part-time student |
N/A |
$150.89 |
Death benefit (one-time payment) |
$2,499.54 |
$2,500.00 |
Combined survivor's and retirement pension (at
age 65) |
$1,017.67 |
$1,449.53 |
Combined survivor's pension and disability benefit |
1,293.81 |
$1,683.57 |
Canada Pension Plan Calculator
How to Apply for Canada Pension Plan ?
- Receiving, ever receiving, or having had a CPP disability benefit denied.
- You ever got a CPP children's benefit that wasn't given to you directly between the ages of 18 and 25.
- Whenever you were less than 18, you were either granted or denied access to a CPP children's benefit, and once you were 18 you were no longer eligible for one.
- You are living outside of Canada and are receiving a CPP survivor's annuity because you met the requirements under an international social security agreement.
- Your CPP account is managed by an authorized third party, such as a trustee or power of attorney.