CPP retirement pension

Who qualifies and what it is based on

To receive the pension you must be at least 60 and have made at least one valid contribution to the CPP, either from work in Canada or from credits received from a spouse or common-law partner after a separation. The amount depends on how much and for how long you contributed, your average earnings over your working life and the age you start. Service Canada reduces the effect of low-earning years in several ways, for example by excluding up to eight of your lowest years from the base calculation.

This is different from the contributions you or an employer pay during your working years. For those, see CPP contributions. Working while you receive the pension does not reduce it, and if you are under 70 and still contributing you may earn a post-retirement benefit.

The effect of your start age

Service Canada reduces the pension by 0.6% for each month you start before 65, to a maximum of 36% at age 60. It increases the pension by 0.7% for each month after 65, to a maximum of 42% at age 70. There is no benefit in waiting past 70. The maximum monthly pension at 65 was $1,507.65 as of January 2026, while the average was $858.34 as of July 2026, so most people receive less than the maximum.

As an illustration, if someone’s pension at 65 would be $1,000 a month, starting at 60 would give $640 a month and starting at 70 would give $1,420 a month. The figures are illustrative and use the percentages above only.

How it is taxed and reported

CPP retirement payments are reported as income. Service Canada issues a T4A(P) slip, and the total in box 20 goes on line 11400 of your return. You may be able to share the pension with a spouse or common-law partner, which can lower taxable income in the household; ask Service Canada how sharing applies to your situation before relying on it.

The pension also adds to your net income. At higher levels it can contribute to the OAS recovery tax.

What to discuss with your accountant

Bring your statement of contributions from My Service Canada Account, any CPP estimate, and your expected income from RRIFs, workplace pensions and OAS. Ask how the start age fits your other income, whether to have tax withheld, and whether sharing the pension would lower the household’s tax. The best age depends on health, other income and retirement plans, not on a single rule.