Navigating Canada Pension Plan

Canada Pension Plan (CPP) is one of the key pillars of retirement planning for Canadians. As a result, it remains important to know the basic elements of the federal government program in order to optimize your overall retirement strategy. 

Almost all individuals who work in Canada contribute to CPP, which operates throughout Canada, except in Quebec, where the Quebec Pension Plan offers similar benefits.

The CPP retirement pension provides a monthly payment to eligible applicants based on how much you have contributed and how long you have been making contributions to the plan at the time you become eligible. Payments are adjusted for inflation every January.

At age 65, contributors are able to apply to receive their full retirement pension. It can also be received with a reduction from ages 60 to 64 or with an increase from ages 66 to 70.

The maximum monthly benefit at age 65 is $1,092.50, or $13,110 annually in 2016. But the average amount for new beneficiaries this year is $629.33 per month or $7,552 per year.

Navigating Canada Pension Plan

For more information on CPP retirement pensions please visit:
Residents of Quebec should visit the Régie des rentes du Québec website for information on pensions and benefits under the Québec Pension Plan.