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 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 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 accessible online via Service Canada. You
can also request that the statement be mailed to you. 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. The Québec Pension Plan (QPP) equivalent to
the statement of contributions is the Statement
of Participation, which can also be accessed online, or can be mailed to
you based on your online request.
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.
our article on the Child Rearing Drop-out Provision, which
could increase your CPP retirement pension monthly benefits.
You cannot receive both a CPP retirement pension and a CPP
disability benefit at the same time. If you are under 65, have been
receiving a CPP retirement pension for less than 15 months, and you are
eligible for the disability benefit, you can request to have your retirement
pension replaced by a disability benefit.
See our CPP
Retirement Pension Calculator, which provides a comparison of
the CPP pension you will receive, based on different starting
See our article on the
Canada Pension Plan Rules, which discusses old and new rules, and provides
factors used to calculate benefits when CPP is taken early or late. This
article also provides information on the post-retirement benefit.