The Canada Pension Plan is a federal retirement and disability insurance program funded by payroll deductions

The Canada Pension Plan (CPP) is a mandatory savings program run by the federal government. Workers and employers both contribute a percentage of earnings into the plan throughout a person's working life. When you reach retirement age, become disabled, or if you die, CPP pays monthly benefits to you or your survivors — the amount depends on how much you contributed and when you start collecting.

CPP is separate from Old Age Security (OAS), which is a different federal benefit based on age and residency rather than work history. Many Canadians receive both programs, but they operate independently and have different rules about when you can start receiving payments.

Service Canada, a division of Employment and Social Development Canada (ESDC), administers CPP. You do not need to apply during your working years — your employer deducts contributions automatically from your pay. You only need to contact Service Canada when you want to start receiving benefits, usually between ages 60 and 70.

Key Takeaways

  • CPP contributions come from both your paycheque and your employer, and the amount you receive later depends on how much was contributed on your behalf.
  • You can start receiving CPP retirement benefits as early as age 60 or as late as age 70, and the monthly amount changes based on when you start.
  • CPP also pays benefits if you become disabled before retirement age, or to your surviving spouse and children if you die.
  • Service Canada maintains a record of your contributions and can estimate your future benefit amount if you request a statement.

How much you contribute and who pays

Both you and your employer contribute to CPP while you are working. In 2024, the employee contribution rate is 5.95% of earnings between a minimum and maximum threshold. Your employer contributes an equal amount. If you are self-employed, you pay both the employee and employer portions, which totals roughly 11.9% of net self-employment income.

There is a maximum earnings ceiling — in 2024 it is $68,500 — so contributions stop once you reach that amount in a year. There is also a minimum earnings threshold below which no contributions are required. These thresholds change annually and are indexed to wage growth.

You do not choose whether to participate. CPP contributions are mandatory for all Canadian workers aged 18 to 65 (with some exceptions for workers over 65 who continue working). Your employer is required by law to deduct your share and remit both portions to Service Canada.

When you can start receiving retirement benefits

You can begin collecting CPP retirement benefits any time between age 60 and age 70. The month and year you choose to start affects how much you receive each month for the rest of your life.

If you start at age 60, your monthly benefit is reduced by roughly 36% compared to what you would receive at age 65. If you delay until age 70, your monthly benefit increases by roughly 42% compared to age 65. The exact percentages depend on your birth date, but the pattern is consistent: earlier start means lower monthly payments, later start means higher monthly payments.

You do not have to stop working to collect CPP. If you continue earning employment income after you start receiving benefits, your contributions continue until age 65. After 65, contributions are optional if you keep working.

How much you will receive each month

Your monthly CPP retirement benefit is based on three factors: your average earnings over your working life, how many years you contributed, and the age at which you start collecting. Service Canada calculates this using your contribution record, which they maintain from the moment you start working.

The maximum CPP retirement benefit in 2024 is approximately $1,610 per month for someone who starts at age 65 and had maximum earnings throughout their career. Most people receive less because their earnings were below the maximum threshold or because they had years with no contributions (such as time spent unemployed, in school, or raising children).

You can request a Service Canada statement of contributions to see an estimate of your future benefit. This statement shows your recorded earnings year by year and projects what you might receive at different start ages. You can request this online through My Service Account, by phone, or in person at a Service Canada office.

CPP disability and survivor benefits

If you become unable to work due to a physical or mental condition expected to last at least one year, you may be may have access to to CPP Disability (CPP-D). This benefit is paid to workers under age 65 who meet the disability criteria. The amount is based on your contribution record, similar to retirement benefits, but you do not choose when to start — you receive it from the month Service Canada approves your claim.

If you die, your estate may receive a one-time death benefit (a lump sum), and your surviving spouse and dependent children may receive monthly survivor benefits. The amount depends on your contribution record and the number of survivors. A surviving spouse can receive benefits at any age if they are caring for a child under 35, or at age 60 or older regardless of whether they have children.

To apply for disability or survivor benefits, contact Service Canada directly. These applications require medical documentation and proof of your relationship to the deceased (for survivor claims), and processing typically takes several months.

How to request your benefit or get more information

When you are ready to start receiving CPP retirement benefits, you must contact Service Canada to request payment. You can do this online through My Service Account, by calling 1-833-537-4648, or by visiting a Service Canada office in person. You will need to provide your Social Insurance Number (SIN) and confirm your banking information for direct deposit.

Service Canada processes most retirement benefit requests within four to six weeks. Your first payment usually arrives in the month after your requested start date. If you apply before you turn 60, Service Canada will hold your application and process it automatically when you reach 60, unless you specify a later start date.

You can also create a My Service Account online to view your contribution history, request a benefit estimate, or check the status of a pending application. This account is free and requires only your SIN and a password.

Frequently Asked Questions

What happens to my CPP if I move out of Canada?

You can continue to receive CPP retirement, disability, and survivor benefits even if you move outside Canada. However, some benefits (like the may provide Income Supplement, which is separate from CPP) may be affected. Notify Service Canada of any address change so your payments continue without interruption.

Can I receive CPP and Old Age Security at the same time?

Yes. CPP and OAS are separate programs with different may be able to access rules. Most Canadians receive both, though the amounts vary. OAS is based on age and residency, while CPP is based on work history and contributions. You apply for each program separately.

What if I did not work for some years?

CPP allows you to drop out some years of low or no earnings from your calculation, particularly years spent raising children under age 7 or years of disability. Service Canada automatically applies these provisions when calculating your benefit, so you do not need to request them separately.

Can I change my mind after I start receiving CPP?

Yes, but only once. If you start CPP and then change your mind within one year, you can request to stop receiving benefits and repay what you received. After one year, you cannot reverse the decision, though you can apply to increase your benefit if you continue working and contributing.

How do I know if my employer is making CPP contributions on my behalf?

Your pay stub should show CPP contributions deducted from each paycheque. You can also request a statement of contributions from Service Canada, which shows all recorded contributions year by year. If contributions are missing, contact Service Canada or your employer to investigate.