The Canada Pension Plan (CPP) is a core part of retirement income for most Canadians. Whether you are approaching retirement or planning many years ahead, CPP will likely contribute to your monthly income. The amount you receive depends on your earnings history, how long you contributed to the plan, and the age at which you begin claiming benefits.
This guide explains key questions about CPP: when to apply, when payments are issued, how CPP is funded and taxed, who is eligible, and how to estimate your monthly benefit.
About the Canada Pension Plan (CPP)
The Canada Pension Plan is a public, contributory retirement pension designed to replace part of your employment income when you retire. It is one of the pillars of Canada’s retirement income system alongside Old Age Security (OAS), the Guaranteed Income Supplement (GIS), and private savings. CPP is financed by deductions from workers’ paycheques, employer contributions, and payments from self-employed individuals. It is not funded from general government revenues.
CPP is administered federally and covers all provinces except Quebec, which operates the Quebec Pension Plan (QPP) for residents of that province. Contributions are mandatory for employees and employers across Canada (except Quebec contributors participate in the QPP).
CPP payment dates for 2026
January 28, 2026February 25, 2026March 27, 2026April 28, 2026- May 27, 2026
- June 26, 2026
- July 29, 2026
- August 27, 2026
- September 25, 2026
- October 28, 2026
- November 26, 2026
- December 22, 2026
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Where does the CPP money come from?
CPP is funded by contributions from employees and employers and by self-employed individuals. These contributions are deducted from paycheques, pooled, and invested by the program. Self-employed people pay both the employee and employer portions through their income tax return. The pooled funds, along with any investment returns, sustain the program and help finance benefit payments.
Beginning in January 2024, contribution rates were increased as part of a phased, multi-year enhancement to the CPP that started in 2019. This enhancement raises future retirement income for contributors. If you want to know how the changes affect your contributions, review your pay statements or consult your tax advisor.
Am I eligible for CPP?
To be eligible to receive CPP retirement benefits, you must be at least 60 years old and have made at least one valid contribution to the CPP. Eligibility can also arise from contributions transferred from a former spouse or partner in certain circumstances. CPP benefits are available to Canadian citizens, permanent residents, and other legal residents who have contributed to the plan.
Should I apply for CPP or QPP?
If you contributed to both CPP and QPP during your working life, the pension plan you apply to depends on your province of residence at the time of application. Residents of Quebec should apply to the QPP; residents of other provinces should apply to the CPP.
When you can start receiving your CPP
You can begin receiving CPP retirement benefits any time between age 60 and age 70. Starting earlier than age 65 results in a permanent reduction in monthly payments, while deferring past 65 increases your monthly amount. Many people opt to begin payments at age 65, but the decision depends on your financial needs, health, life expectancy, and other retirement income sources.
Are CPP payments taxable?
Yes. CPP retirement benefits are considered taxable income and must be reported on your annual tax return. You can request that the Canada Revenue Agency (CRA) withhold federal income tax from each CPP payment to avoid a tax bill at filing time. This request can be made through your Service Canada account or by submitting the appropriate form to the CRA; otherwise, you may need to make quarterly tax instalments.
How long will I receive CPP benefits for?
CPP retirement payments are paid monthly for as long as you live. The plan also provides disability benefits for eligible contributors and survivor and children’s benefits for families after a contributor’s death, including a one-time death benefit and a monthly survivor’s pension in qualifying situations.
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How much will my monthly CPP payments be?
Your monthly CPP retirement pension depends primarily on three factors:
- Your age when you start receiving benefits
- The total amount and duration of your CPP contributions
- Your average earnings over your working life
- The annual Cost-of-Living Adjustment (COLA), which is currently projected in the low single digits
In general, the longer you wait to start benefits and the higher your lifetime contributions, the larger your monthly payment will be. However, many people choose to start earlier for a guaranteed income or to match other retirement plans.
For 2026, the average monthly payment for new CPP beneficiaries is estimated at about $1,365. As of January 2026, recipients may see an annual increase in benefits—up to around $530 for those receiving the full benefit, which translates to roughly $44 extra per month depending on the COLA adjustment.
You may qualify for higher benefits if you receive CPP disability benefits or if you are a survivor of a CPP contributor. To get a personalized estimate of your future CPP income, check your My Service Canada Account for contribution records and estimate tools.
How to apply for your CPP benefits
You can apply for CPP online through your My Service Canada Account or by submitting a paper application. Processing and a benefits determination can take up to 120 days. Payments are issued monthly and can be deposited directly into your bank account if you choose direct deposit; otherwise, cheques are mailed toward the end of each month.
FAQs
You can begin collecting CPP as early as age 60 or defer benefits until age 70. Starting before age 65 reduces your monthly amount permanently; starting after 65 increases it. CPP does not start automatically—you must apply to receive benefits.
Yes. CPP payments are taxable income and must be reported on your tax return. You can request tax be withheld from your CPP payments to avoid a large tax bill when you file.
Yes. You can continue working while receiving CPP. If you are under 70 and keep contributing to CPP through employment or self-employment, those additional contributions may increase your future benefits via the Post-Retirement Benefit (PRB).
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Read more about CPP:
- How to double your CPP income
- How CPP payouts work when you already have a pension
- CPP and disability: When should you retire and start your pension?
- Do non-residents pay tax on CPP? What if you live in the U.S.?
- Should I delay my CPP if I’m not contributing to it?
- Should you collect CPP and OAS while working in your 60s?