Estimate your Canada Pension Plan retirement benefit. See how start age, earnings history, and years of contributions affect your monthly pension.
CPP retirement pension is based on your contributions over your working life. Service Canada uses your average earnings (between 18 and 65) relative to the Year's Maximum Pensionable Earnings (YMPE) each year. The formula drops your lowest-earning years (up to 17% via the 'general drop-out provision') and periods of child-rearing. The maximum monthly CPP at 65 in 2025 is $1,364.60, but the average payment is ~$815/month.
You can start as early as 60 (with a 36% permanent reduction) or delay until 70 (with a 42% permanent increase). At 60, you get 0.6% less per month before 65. At 70, you get 0.7% more per month after 65. The 'breakeven' age is typically 73-74 — if you live past that, delaying to 70 pays more in total. Health, other income sources, and tax implications matter.
CPP2 is a second tier of contributions that began in 2024 for earnings between the YMPE ($71,300) and YAMPE ($81,200). Employees contribute an extra 4% on that band. At maturity (workers who contribute for 40 years), CPP2 will add ~8% more pension on top of base CPP. Most workers won't see the full CPP2 benefit until 2065+.
Yes. Since 2012, you can receive CPP and continue working. If you're under 65, your employer must continue CPP contributions (building your 'Post-Retirement Benefit' or PRB). If you're 65-70, contributions are optional. Each year of PRB contributions adds a small amount to your pension the following year.
CPP and OAS (Old Age Security) are separate programs. OAS is available to all Canadians 65+ who meet residency requirements — it's not based on contributions. In 2025, the maximum OAS is ~$727/month. Combined with maximum CPP, that's ~$2,091/month in government benefits. OAS is clawed back if your net income exceeds ~$90,997 (2025).
Most Canadians don't. The average CPP payment at 65 is about $815/month. Your pension is proportional to your average contributions relative to the YMPE. Years abroad, part-time work, periods of unemployment, and career breaks all reduce your average. However, the child-rearing drop-out and general 17% drop-out help remove your worst years.