Your personal AI for understanding and tracking your personal finance.
Your personal AI for understanding and tracking your personal finance.
Estimate your Canada Pension Plan retirement benefit. See how start age, earnings history, and years of contributions affect your monthly pension.
Earning at or above the YMPE for $18,092 a year of pension needs about 39 such years. The average new pension at 65 is $877/month, not the $1,508 maximum.
Full OAS is $751.97/month at 65-74 and $827.17 from 75 (July-September 2026 quarter, re-indexed October 2026). It needs 40 years of Canadian residency after 18 and is pro-rated below that — set it to $0 if you do not expect to qualify. OAS cannot start before 65 whatever you do with CPP. Not sure what your residency earns you? The OAS calculator works the proration out year by year.
OAS cannot start before 65 no matter when you take CPP, so these two do not switch on at the same time.
CPP can start any time from 60 to 70. OAS cannot start before 65 under any circumstances, so taking CPP early does not move OAS forward with it — it only lengthens the stretch your own savings have to cover. Start CPP at 60 and that is five years on the reduced CPP alone; start at 65 and both arrive together.
On your figures, CPP and OAS begin together at 65 — $842 of CPP plus $752 of OAS, or $1,594/month. OAS is clawed back 15 cents per dollar of net world income above $93,454; CPP is never clawed back itself, but it counts toward the income that triggers the OAS recovery tax — the OAS clawback calculator shows what it takes back at your income.
The age at which the later start overtakes the earlier one in total dollars received. It depends only on the ratio between the two amounts, so it is the same for everyone.
These two are far apart, and treating them as one number is the most common mistake in the CPP timing debate. Deciding between 60 and 65 breaks even in your mid-70s; deciding between 65 and 70 does not break even until your early 80s. Health, other income and whether you need the money now matter more than the arithmetic.
The start-age adjustment is legislated: 0.6% less per month before 65, 0.7% more per month after. Applied to the January 2026 maximum ($1,508/month) and the average new pension ($877/month):
| Start age | Change | Max /mo | Avg /mo |
|---|---|---|---|
| 60 | -36% | $965 | $561 |
| 63 | -14% | $1,291 | $751 |
| 65 (standard) | — | $1,508 | $877 |
| 67 | +17% | $1,761 | $1,024 |
| 70 | +42% | $2,141 | $1,245 |
So a typical new pensioner starting at 60 receives about $561/month for life, against $1,245 for waiting to 70. The breakevens differ by decision: 60-vs-65 crosses at about age 74, but 65-vs-70 not until about 82 — the calculator above solves both for your own numbers.
Two sides to the calculation. What you pay: employees contribute 5.95% of earnings between $3,500 and the YMPE of $74,600 (2026) — a maximum of $4,230.45 — plus the newer CPP2 tier of 4% on earnings from $74,600 to $85,000, at most another $416. Employers match both; the self-employed pay both halves.
What you get: Service Canada averages your earnings relative to each year's YMPE from age 18, drops your lowest ~17% of years (plus child-rearing periods), and pays a pension proportional to that average. The $1,508 maximum needs roughly 39 years at or above the YMPE — which is why the average new pension is only $877, about 58% of it. The CPP enhancement (2019–2025 phase-in) lifts future pensions by up to ~8% for those with full post-2019 careers — see the CPP enhancement calculator.
2026 contribution parameters verified against Canada.ca (CPP enhancement page), 30 August 2026.
| Benefit (monthly) | 2026 | Basis |
|---|---|---|
| Maximum CPP at 65 | $1,508 | Benefits starting January 2026 |
| Average new CPP at 65 | $877 | average for new beneficiaries, April 2026 (Canada.ca) |
| Maximum OAS, 65–74 | $751.97 | July-September 2026 quarter |
| Maximum OAS, 75+ | $827.17 | 10% statutory boost at 75 |
| Max CPP + OAS combined at 65 | $2,260 | Before any OAS clawback |
OAS is residency-based, needs no contributions, cannot start before 65, and is clawed back at 15 cents per dollar of net world income above $93,454. Quebec workers contribute to QPP instead — the same structure with slightly different rates; this calculator models CPP.
CPP is one of two public pensions and this page computes the other only as a flat amount you set. To work out what your years of Canadian residency actually earn you, use the OAS calculator — it prorates below 40 years and handles deferral to 70. If your retirement income is likely to pass $93,454, the OAS clawback calculator shows how much of it the recovery tax takes back. For a full post-2019 contribution history, the CPP enhancement calculator splits Tier 1 from CPP2. And to check the result against reality, see what Canadians 65 and over actually live on in average retirement income and average CPP payment by age.
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 is $1,507.65 for benefits starting January 2026, but the average new beneficiary at 65 receives $877.01 per month (Canada.ca, April 2026) — about 58% of the maximum, because the maximum needs roughly 39 years of contributions at or above the YMPE.
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. There is no single breakeven age, and quoting one is the most common error in this debate: choosing between 60 and 65 breaks even at about age 74, while choosing between 65 and 70 does not break even until about age 82.
The calculator computes both. Health, other income sources, and tax implications matter more than the arithmetic.
CPP2 is a second tier of contributions that began in 2024 for earnings between the YMPE ($74,600 in 2026) and YAMPE ($85,000). Employees contribute an extra 4% on that band (employers match, self-employed pay 8%).
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+.
For a detailed Tier 1 + Tier 2 contribution breakdown and a transitional-vs-fully-enhanced retirement pension projection, see the dedicated CPP Enhancement Calculator at /ca/tools/cpp-enhancement-calculator.
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.
For the July-September 2026 quarter the maximum OAS is $751.97/month for ages 65 to 74, rising to $827.17 at 75. Combined with the maximum CPP of $1,507.65, that is $2,259.62/month in government benefits.
OAS is clawed back at 15 cents per dollar of net world income above $93,454, and — unlike CPP — it cannot start before 65 however early you take CPP. How much OAS you personally get depends on years of Canadian residency, which the OAS calculator at /ca/tools/oas-calculator works out; what the recovery tax takes back at your income is at /ca/tools/oas-clawback-calculator.
Most Canadians don't. The average new CPP retirement pension at 65 is $877.01/month (Canada.ca, average for new beneficiaries, April 2026), against a 2026 maximum of $1,507.65 — so the typical new pension is only about 58% of the maximum.
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.
