Canada Pension Plan (CPP) is a mandatory contributory pension plan designed to provide monthly retirement, disability and survivor benefits for all Canadians. Employers and employees make equal contributions. Quebec has its own parallel pension plan Quebec Pension Plan (QPP). You can receive your full CPP/QPP retirement benefits when you’re 65. Once you start receiving the benefit, you can’t change it. The average monthly CPP payment at age 65 of $619.75. CPP benefits are sheltered from inflation and are guaranteed for the rest of your life.
The table below shows the monthly maximum CPP payment amounts for 2024, along with the average amount for new beneficiaries:
| Type of Pension/Benefit | Average 2024 Payment | Maximum 2024 Payment |
|---|---|---|
| Retirement Pension (at age 65) | $758.32 | $1,364.60 |
| Disability Benefit | $1,127.30 | $1,606.78 |
| Survivor’s Pension (Younger than 65) | $498.66 | $739.31 |
| Survivor’s Pension – (65 and Older) | $315.77 | $818.76 |
| Death Benefit (one-time payment) | $2,500 | $2,500 |
| Combined Benefits | Average 2024 Payment | Maximum 2024 Payment |
|---|---|---|
| Survivor’s and Retirement Pension (Age 65) | $944.53 | $1,375.41 |
| Survivor’s Pension and Disability Benefit | $1,230.33 | $1,613.54 |
CPP Contribution Limit
For 2024, the contribution rates for both employees and employers for CPP remain at 5.95%, with a maximum contribution of $3,867.50 each—increasing from $3,754.45 in 2023. The self-employed CPP contribution rate stays at 11.90%, and the maximum contribution rises to $7,735.00, up from $7,508.90 in 2023.
For CPP2, the contribution rates in 2024 are 4.00% for both employees and employers, with a maximum contribution of $188.00 each. The self-employed CPP2 contribution rate is 8.00%, with a maximum self-employed contribution of $376.00.
It’s important to note that contributors are neither required nor permitted to make contributions on pensionable earnings exceeding $73,200.
How Much is CPP Pension Each Month?
CPP payments are not automatic. You must apply. You should apply in advance of when you want your pension to start. Pay your CPP retirement pension in the month of the start date you choose. In 2023, the Year’s Maximum Pensionable Earnings (YMPE) is $66,600. Here’s a helpful chart to determine what your CPP monthly payment might be:
| Age | Average Monthly Amount | Yearly Average Amount | Monthly Maximum Amount | Yearly Maximum Amount |
|---|---|---|---|---|
| 60 | $486.44 | $5,837.34 | $836.20 | $10,034.46 |
| 65 | $760.07 | $9,120.84 | $1,306.57 | $15,678.84 |
| 70 | $1,079.30 | $12,951.59 | $1,855.33 | $22,263.96 |
How Much CPP Will You Get at 60?
The highest annual payment for opting for CPP at the age of 65 is $16,375.20 in 2024. This figure would decrease to $10,480.13 per year if you choose to start receiving CPP at the age of 60.
Is CPP Paid for Life?
The retirement pension provided by the Canada Pension Plan (CPP) is a monthly taxable benefit designed to replace a portion of your income upon retirement. If you meet the eligibility criteria, you will continue to receive the CPP retirement pension throughout your lifetime.
How Many Years Do You Have to Work to Get Maximum CPP?
To be eligible for the maximum CPP, it’s necessary not only to contribute to CPP for 39 years but also to contribute a sufficient amount in each of those years.
How Do You Figure Out How Much CPP I Will Get?
Access an estimate of your monthly CPP retirement pension payments by logging into your My Service Canada Account. If you don’t have an account, you can register for one, and we will send you a personal access code to finalize your registration.
Do You Get CPP If You’ve Never Worked?
To qualify for payments from the Canada Pension Plan/Quebec Pension Plan, you must satisfy the following conditions: You must be at least one month beyond your 59th birthday, and you must have worked in Canada for a specific duration, making at least one qualifying contribution to the CPP/QPP.
What is the Best Age to Take CPP?
Delaying the receipt of CPP until the age of 70 results in a higher monthly benefit compared to applying at 65 or earlier. However, this strategy is worthwhile only if you anticipate collecting for a duration that compensates for potentially missed payments during the waiting period.
How Much Will Your CPP Cheque Increase in 2024 Canada?
CPP benefits are adjusted for inflation, with the rate increase representing the percentage change from a year to the preceding one. In January 2024, CPP payments were raised by 4.8%, calculated by comparing the average Consumer Price Index (CPI) from November 2022 to October 2023 to the average CPI from November 2021 to October 2022.
When Someone Dies What Happens to Their CPP?
The death benefit under the Canada Pension Plan (CPP) is a singular, lump-sum payment made to the estate of a deceased CPP contributor, provided they meet the eligibility criteria. In the presence of an estate, the individual named as the executor in the will or appointed by the Court as the estate administrator is responsible for applying for the death benefit.
Can You Collect CPP and Still Work?
It is possible to continue working while receiving a CPP retirement pension without a reduction in the pension amount. Moreover, you have the potential to augment it through the CPP post-retirement benefit. If you are under the age of 70 and working while receiving your CPP retirement pension, you can still contribute to CPP.
What are the CPP Payment Dates for 2024?
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 25, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Should I Take CPP at 60?
If you start before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36%.
Should I Take CPP at 70?
If you start after age 65, payments will increase by 0.7% each month (or by 8.4% per year), up to a maximum increase of 42%.
Taking CPP Based on Family History
| Start CPP | Life Expectancy |
|---|---|
| 60 | 68 |
| 61 | 69 |
| 62 | 71 |
| 63 | 73 |
| 64 | 75 |
| 65 | 76 |
| 66 | 77 |
| 67 | 79 |
| 68 | 80 |
| 69 | 82 |
| 70 | 84+ |
| Start CPP | Life Expectancy |
What is the Canada Pension Plan?
The Canada Pension Plan (CPP) is a publicly-funded pension program in Canada that provides retirement, survivor, and disability benefits to eligible contributors and their families. The CPP is funded by contributions from employees and employers, and is managed by the Government of Canada.
Eligibility for CPP benefits is based on a person’s contribution history, and the amount of the benefit is determined by the amount of contributions made and the age at which the benefit is taken. The CPP is designed to provide a stable and predictable source of income in retirement, and is intended to supplement other sources of retirement income, such as private pensions and personal savings.
Employees and employers are required to make contributions to the CPP based on a percentage of an employee’s earnings up to a maximum amount. The contribution rate is periodically reviewed and may be adjusted to ensure the long-term sustainability of the plan.
In addition to retirement benefits, the CPP also provides survivor and disability benefits to eligible contributors and their families. The survivor benefit provides a monthly pension to the surviving spouse or common-law partner of a deceased contributor, and the disability benefit provides a monthly pension to contributors who are unable to work due to a severe and prolonged disability.
The CPP is an important part of Canada’s retirement income system, and is one of the largest public pension plans in the world. It is designed to provide a secure and stable source of income in retirement, and to help Canadians maintain their standard of living in their later years.
CPP Death Benefit
The death benefit under the CPP is a singular lump-sum payment to the estate of a deceased CPP contributor, provided they meet the eligibility criteria. If an estate is present, the individual designated as the executor in the will or appointed by the Court as the estate administrator is responsible for applying for the death benefit. It is recommended that the executor applies for the benefit within 60 days from the date of death.
Other CPP Benefits
- Post-Retirement Benefit
- Disability Pension
- Post-Retirement Disability Benefit
- Survivor’s Pension
- Children’s Benefit
- Death Benefit
Related
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
