Canada Pension Plan payments go out soon — Here’s how much $ you can receive

As the month of May nears its end, Canadian residents can expect one more monthly payment from the Government of Canada.

The Canada Pension Plan (CPP) is being paid out soon and eligible Canadians can be entitled to hundreds of dollars this month. According to the Canada Revenue Agency (CRA), the CPP retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life.

The federal government recommends looking into which financial benefits and programs you can collect from, many of which you may or may not be automatically enrolled in upon filing your annual income taxes.

Here’s everything you need to know about whether you’re enrolled, how to apply, and how much you can expect to receive this month.

Do you qualify for the Canada Pension Plan?

To qualify for the CPP retirement pension, you must be at least 60 years old and have made at least one valid contribution to the CPP, either from work in Canada or through credits from a former spouse or common-law partner, per the CRA.

You can work while receiving the CPP pension without reducing the amount and even increase it through the CPP post-retirement benefit if you continue contributing until age 70. However, contributions can be stopped at 65 if desired. For those who lived and worked in Quebec, the CPP and Québec Pension Plan (QPP) coordinate to ensure all contributors receive their pensions.

Those who worked solely in Quebec, worked in Quebec and another province but live in Quebec, or worked in Quebec and now live outside Canada with Quebec as your last province of residence, should contact Retraite Quebec.

When can you start receiving the Canada Pension Plan?

Per the Canada Revenue, Agency — the standard age to start your pension is at age 65, but you can choose to begin as early as 60 or as late as 70. Starting earlier means receiving a smaller monthly amount while starting later results in a larger monthly payment. There is no advantage to delaying beyond age 70, as the maximum monthly amount is reached at that age.

Those who apply after turning 65, you can receive retroactive payments of the CPP retirement pension for up to 12 months (11 months plus the month you apply). The start date you choose will affect your monthly benefit amount. There are no retroactive payments for a CPP retirement pension taken before age 65.

For Canadians unsure if they are ready to retire, you can consult the CPP quiz here.

How much can you receive from the Canada Pension Plan?

The amount of your CPP retirement pension depends on factors such as the age you start your pension, how much and how long you contributed to the CPP, and your average earnings throughout your working life, according to the CRA.

For 2024, the maximum monthly amount if you start at age 65 is $1,364.60, while the average monthly payment for new pensions at age 65 in January 2024 was $831.92.

Your specific situation will determine your payment amount up to the maximum. You can estimate your monthly CPP retirement pension payments by signing in to your My Service Canada Account. If you don’t have an account, you can register for one and will receive a personal access code to complete your registration.

This article’s cover image was used for illustrative purposes only.

Source: MTL Blog