Insights & advice
CPP payment dates: How much CPP will I get?
April 2023 – 15 min read
Key takeaways
How much CPP you’ll receive is based on how much you contribute during your working life
The CPP is paid monthly, starting as early as age 60
You’ll pay income tax on the CPP you receive
What is CPP
The Canada Pension Plan (CPP) is 1 of the main sources of retirement income for Canadian seniors. In Quebec, the program is known as the Quebec Pension Plan (QPP).
CPP payment dates for 2023
The CPP is paid monthly by direct bank account deposit or cheque. These are the CPP payment datesOpens a new website in a new window - Opens in a new window.
How much CPP will I get?
Everyone gets a unique amount of CPP. The amount of your monthly payment depends on several factors, including:
- How long you contributed
- How much you contributed, based on your income
- The age you decide to start receiving benefits
- If you continue working after you start collecting CPP
The normal retirement age to begin receiving an unreduced CPP/QPP benefit is 65. You can choose to take a reduced pension as early as age 60 and the permanent reduction in your pension payment is calculated based on the number of months until your 65th birthday.
Starting your pension after age 65 can result in a higher CPP/QPP amount per month. It will increase a set percentage for each month you delay receiving it, up to age 70.
The average CPP benefit - Opens in a new window in October 2022 was $717.15 per month. The maximum amount you could receive as a new recipient starting at age 65 is $1,306.57.
To receive the maximum CPP amount you must contribute to the CPP for at least 39 of the 47 years from ages 18 to 65. You must also contribute the maximum amount to the CPP for at least 39 years based on the yearly annual pensionable earnings (YMPE) set by the Canada Revenue Agency (CRA). The YMPE for 2022 is $64,900.
To get a better idea of how much CPP you’ll receive, ask Service CanadaOpens a new website in a new window - Opens in a new window for your CPP statement of contributions.
Paying tax on CPP payments
CPP payments are taxed based on your overall taxable income. The federal income tax rates for 2022 were:
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Less than $50,197: 15% |
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$50,198 to $100,392: 20.5% |
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$100,393 to $155,625: 26% |
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$155,626 to $221,708: 29% |
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Over $221,708: 33% |
CPP benefits increase
Originally, the CPP was meant to replace 25% of someone’s pre-retirement income. Changes were made in 2019. Now, the long-term plan is for the CPP to replace one-third of a person’s average lifetime earnings. These changes aren’t expected to fully take effect until 2065.
If you contribute to the CPP, this means:
- You and your employer will each contribute 5.10% instead of 4.95%
- Starting in 2024, an additional 4% contribution rate (by you and your employer) will apply to income above the yearly maximum pensionable earnings (YMPE), to a maximum amount
Qualifying for CPP
To be eligible for CPP, you must:
- Be at least 1 month past your 59th birthday
- Intend for your CPP to start within the next 12 months
- Have worked in Canada and made at least 1 valid CPP contribution
What next?
Now that you know how to determine how much CPP you might receive, why not meet with your financial advisor to:
Determine other sources of retirement income and what your total income might be in retirement
Discuss when you should apply to begin receiving CPP payments
Source : CPP retirement pensionOpens a new website in a new window - Opens in a new window : Overview, Government of Canada.
This information is general in nature, and is intended for informational purpoases only. For specific situations you should consult the appropriate legal, accounting or tax advisor.
