Canada Pension Plan (CPP)
Tchaps Solution- 2025-09-20
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The CPP is a monthly, taxable benefit that replaces part of your income when you retire. It also provides benefits in case of disability or death.
Eligibility
- Based on your contributions to the plan and your age
- You must have made valid contributions through employment or self-employment
Payment Amounts
- Maximum monthly pension at age 65 (Jan 2025): $1,433.00
- Average monthly pension at age 65 (Oct 2024): $899.67
When to Start Receiving CPP
- You can start as early as age 60 or delay up to age 70
- Delaying increases your monthly benefit
How CPP Is Calculated
- Based on your contribution history
- Factors include:
- Years of contribution
- Earnings
- Age at retirement
Receiving Payments
- Paid monthly
- Direct deposit is recommended for faster and secure payments
Taxes
- CPP payments are taxable
- You can request federal tax deductions from your payments
Cancelling CPP
- You can cancel your CPP pension within 6 months of starting it
- Must repay any amounts received
