What is the Canada Pension Plan (CPP)?

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit for Canadians, which replaces part of your income once you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life. To qualify you must be at least 60 years old and have made at least one valid contribution to the CPP, which can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.

The CPP is not the same as a Company Pension. They are two completely different things. Your company pension (such as a Defined Benefit Pension Plan) is through your employer. CPP and Old Age Security (OAS) is through the government.

At Pension Solutions Canada, we work with individuals to maximize their company pension and help you plan for retirement. If you have any questions about CPP or OAS, please contact the government at the following numbers: 1-800-277-9914 (for English service) or 1-800-277-9915 (French service).

How to apply for the Canadian Pension Plan (CPP)

CPP payments are not automatic, you must apply for them. Click here for details on how to apply for CPP benefits.

How much is my pension plan?

The amount you receive for your Canada Pension Plan benefit each month is based on:

a) Your average earnings throughout your working life.

b) Your contributions to the CPP, based on your earnings.

c) The age you decide to start your CPP retirement pension.

According to the government website, for 2019 the maximum monthly amount you could receive as a new recipient starting the pension at age 65 is $1,154.58. The average monthly amount is $679.16. Your situation will determine how much you’ll receive up to the maximum.

What age do you start your pension?

The standard age to start the pension is 65. However, you can start receiving it as early as age 60 or as late as age 70.

If you start receiving your retirement pension earlier, the monthly amount you’ll receive will be smaller. If you decide to start later, you’ll receive a larger monthly amount.

How long does a Canada Pension Plan Application take to process?

According to the government website, typically it will take 7 to 14 days for online applications, and normally within 120 days for applications delivered at a Service Canada Centre or sent by mail.

Questions About CPP?

Please note: We are not the CRA or a government agency. Pension Solutions Canada helps individuals with a defined pension plan through their employer (company pensions).

If you have any questions about CPP or OAS, please contact the government at the following numbers: 1-800-277-9914 (for English service) or 1-800-277-9915 (French service).