If you’re a Canadian retiree or planning to retire soon, you’ve likely heard about the Canada Pension Plan (CPP) payment, set to reach up to $1,433 on June 28, 2025.
Whether you’re already receiving benefits or preparing to apply, understanding how CPP works is key to managing your retirement finances.
This guide will cover everything you need to know, from eligibility to the new CPP enhancements and tips to maximize your monthly payments.
CPP Payment Overview
The following details outline the key facts about the Canada Pension Plan payments set for June 28, 2025:
| Topic | Details |
|---|---|
| Payment Date | June 28, 2025 |
| Maximum Monthly CPP | $1,433 (at age 65) |
| Average CPP | $899.67 (as of October 2024) |
| Eligibility Age | 60 years or older |
| Contributions | At least one valid contribution |
| Application Required | Yes, through My Service Canada Account |
| Taxable | Yes, CPP is considered taxable income |
| Recommended Option | Direct deposit to avoid delays |
What is the Canada Pension Plan (CPP)?
The Canada Pension Plan (CPP) is a government-run pension program designed to provide monthly payments to Canadians during their retirement. You contribute to the CPP throughout your working years if your earnings exceed a certain threshold.
These contributions directly impact the amount you will receive during retirement. In addition to retirement pensions, CPP also provides disability, survivor, and children’s benefits, offering support for both you and your family.
A Brief History of CPP
Introduced in 1965, the Canada Pension Plan was established to ensure income security for Canadians in retirement. Over the years, the CPP has been adjusted to keep up with inflation and increasing life expectancy.
Recently, enhancements were made to increase future benefits, particularly benefiting younger workers who will contribute more over the years.
Understanding CPP Enhancements
Since 2019, the Canadian government began gradually implementing CPP enhancements designed to provide higher future benefits. The changes include:
- Increased contributions now lead to higher benefits in the future.
- By 2025, CPP will cover one-third of pre-retirement income (up from one-quarter).
- The enhancements will primarily benefit younger Canadians who contribute more during their careers.
Who is Eligible for CPP?
To qualify for CPP, you must meet the following criteria:
- Be at least 60 years old.
- Have made at least one valid CPP contribution.
- Have lived or worked in Canada (or meet rules for overseas contributors).
- Quebec residents contribute to the Quebec Pension Plan (QPP), not the CPP.
How Much Will You Receive?
The maximum monthly CPP payment at age 65 in 2025 is $1,433. However, most individuals will receive a lesser amount, depending on factors such as:
- Shorter contribution periods.
- Lower income during working years.
- Starting CPP early.
As of October 2024, the average monthly CPP was $899.67.
When to Start Receiving CPP?
Your monthly payment is influenced by the age at which you choose to begin receiving CPP:
- Start at 60: Receive 64% of your full payment.
- Start at 65: Receive 100% of your full payment.
- Start at 70: Receive 142% of your full payment.
Example
- John starts at 60: Receives $916/month.
- Mary delays until 70: Receives $2,035/month (with enhancements).
How to Apply for CPP
You can apply for CPP through the following methods:
- Online:
- Log into your My Service Canada Account.
- Complete the application and track its status.
- By Mail:
- Download Form ISP-1000 and mail it to Service Canada.
- In Person:
- Visit your local Service Canada Centre for assistance.
Make sure to apply at least 6 months before you want to begin receiving payments.
Why Opt for Direct Deposit?
Using direct deposit for your CPP payments ensures that your payments are processed faster, safer, and more reliably compared to paper cheques. Ensure your banking details are up to date in your My Service Canada Account.
What to Do If Your Payment is Late?
If your CPP payment is delayed:
- Wait 5 business days after the payment date.
- If the payment is still not received, call Service Canada at 1-800-277-9914.
Additional CPP Benefits
Besides retirement pensions, the Canada Pension Plan also offers the following benefits:
- CPP Disability Benefit: For contributors who become disabled.
- CPP Survivor Benefit: Paid to a spouse or eligible family member.
- CPP Death Benefit: A one-time payment to the estate.
- CPP Children’s Benefit: For children of deceased or disabled contributors.
These additional programs provide extra security for you and your family.
Real-Life Scenarios
Sarah Retires at 60:
- Sarah begins receiving 64% of her full CPP benefit and supplements her income with RRSPs. She planned for this reduced amount and began enjoying her retirement early.
Bob Retires at 70:
- Bob delays starting his CPP to increase his monthly benefit by 42%. With the enhanced contributions, he now receives over $2,000 per month from CPP alone.
CPP Payment Schedule for 2025
| Month | Payment Date |
|---|---|
| January | 29th |
| February | 26th |
| March | 27th |
| April | 26th |
| May | 28th |
| June | 28th |
| July | 29th |
| August | 27th |
| September | 25th |
| October | 29th |
| November | 26th |
| December | 22nd |
Understanding the Canada Pension Plan (CPP) is essential for making informed retirement decisions. By knowing the eligibility requirements, payment amounts, and enhancements, you can optimize your financial planning.
Whether you’re approaching 60 or are already retired, staying updated ensures you don’t miss out on valuable benefits.
FAQs
What age can I start receiving CPP?
You can start receiving CPP at age 60, but if you wait until 70, you’ll receive a higher monthly payment.
How can I apply for CPP?
You can apply for CPP online, by mail, or in person at a Service Canada Centre.
What happens if my CPP payment is late?
Wait for 5 business days after the payment date and then contact Service Canada if it’s still not received.