Insights & advice
What is the Quebec Pension Plan (QPP)?
May 2022 – 15 min read
Key takeaways
The Quebec Pension Plan provides Quebec workers and their families with basic financial protection for retirement, death or disability
You must apply to receive QPP retirement benefits
You qualify for QPP If you worked in Quebec, contributed to QPP for at least a year and are at least 60 years of age
The amount you’ll receive from QPP depends on your income during your lifetime and the age at which you begin receiving pension payments
What is the Quebec Pension Plan (QPP)?
The Quebec Pension Plan provides people who work or have worked in Quebec and their families with basic financial protection for retirement, death or disability. You must contribute to the plan if you’re age 18 and over and your annual employment income is greater than $3,500.
How to qualify for the QPP
You qualify for QPP retirement benefits If you worked in Quebec, contributed to QPP for at least a year and are at least 60 years of age. You must apply to receive QPP retirement benefits (they don’t start automatically).
Can you qualify for the QPP and Canada Pension Plan (CPP)?
CPP and QPP have sharing agreements and offer similar retirement benefits. The amount you’ll be paid will consider contributions made to both plans.
If you’ve contributed to both CPP and QPP, you’d apply to receive QPP if you’re living in Quebec and to CPP if you’re living anywhere else in Canada .
If you’re living outside Canada, you’d apply for CPP or QPP according to the last province in which you lived.
If you only paid into QPP, you’ll receive QPP regardless of the province where you live during retirement.
When you can apply for QPP
Retraite Quebec recommends you apply 3 months before the month you wish to receive your first payment. However, you may apply no more than 12 months in advance.
You can apply for QPP hereOpens a new website in a new window - Opens in a new window.
How much you’ll receive from the QPP
Your QPP pension amounts are calculated based on:
Your employment earnings since 1966 (the year the Quebec Pension Plan started)
Your age when you begin receiving your pension
If you apply for QPP at age 65, it will replace between 25 and 33.33% of the average monthly earnings on which you contributed to the QPP. The maximum monthly retirement pension in 2022 is $1,253.59Opens a new website in a new window - Opens in a new window.
If you apply for your QPP retirement pension at age 60, the amount will be lower than if you wait to apply until age 65. If you apply between ages 65 and 70, the amount will be higher. There is no benefit to applying after age 70.
You can calculate your QPP retirement income using their online toolOpens a new website in a new window - Opens in a new window.
What’s next?
Now that you know more about the QPP, why not meet with your 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 QPP payments
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.
