The CPP retirement pension, as mentioned above, can be obtained as early as
age 60. It can also be delayed to age 70.
When early pension is taken before 2012, the pension
amount is reduced by 0.5%** for each month that you start your pension before
or after you turn 65. Thus, if you start your pension at age 60, it will
be 30%** less than if you start it at age 65. However, because you will be
receiving the pension for an additional 5 years, and you cannot predict how
long you will live, it is usually to your
advantage to start it as early as possible.
The amount of your CPP pension will depend on how many years you have
contributed to the Plan, and how much you have contributed.
A person's CPP retirement pension is
calculated as 25% of his average pensionable earnings during his
contributory period. The contributory period starts when he turns
18, or 1966, whichever is later. The contributory period ends when
he starts collecting the pension.
You can estimate
how much your CPP retirement pension will be by referring to your Statement
of Contributions, which is sent to you annually. The table of
average and maximum rates can be found on the Service
Canada website. You can use our CPP
Retirement Pension Calculator to compare the pension you would receive at
different starting dates.
You should apply for your CPP retirement pension about 6 months before you
would like it to start. You can apply up to a year before you would like
it to start. Service Canada indicates that it takes about 8 weeks to
receive your first payment, from the time that they receive your application.