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The CPP Retirement Pension Calculator will retain your data on your computer. Click Reset before closing if you are using a public computer.
This calculator will show you roughly how much Canada Pension Plan (CPP) retirement pension you will collect, depending on the age at which you decide to start collecting. The main purpose of the calculator is to help you see the effect of starting to receive your pension at different ages, not to provide an exact amount of your pension.
You will need your estimated CPP retirement pension at age 65, from a current CPP statement of contributions, in order to use the calculator. If you have not received a statement of contributions, you can get one online from Service Canada CPP Statement of Contributions. If you are getting the information online from Service Canada, go to the page which says "View my estimated monthly CPP benefits".
The calculator uses your estimated monthly CPP benefit at age 65 provided to you by Service Canada. This estimate is based on your average earnings since age 18, and assumes that your earnings will continue at this level until age 65. This estimate does not include the effects of the child rearing drop-out (CRDO). If the CRDO applies to you, then your CPP would be greater than the estimate.
The maximum starting CPP retirement pension is indexed annually based on the Consumer Price Index (CPI). The calculator displays the CPP indexation factor for the previous 5 years to help you estimate an indexation factor to be used by the calculator. When the inflation rate is high, you are most likely better off to take your CPP retirement pension later. As noted in the article Consider inflation when deciding when to begin CPP by Lea Koiv, the indexation of the year's maximum pensionable earnings for wage inflation also affects the CPP calculation.
Choose 3 Years for Starting CPP
The calculator compares the CPP retirement pension starting at 3 different ages, which you can choose. For instance, if you turn 60 in 2016 and want to start collecting your CPP in 2016, you would enter the year 2016 and age 60. You can then choose 2 other ages in the next 2 columns, in order to provide a comparison.
The calculator also calculates the present value (PV) of the pension to be received up to a certain age, based on an estimated rate of return which you input. The PV is the amount that would have to be invested at the earliest time in the table of results, in order to provide the future cashflows shown in the results. The present value shown in each column of the calculator is the amount that would have to be invested at the beginning of the first year, in order to have the annual CPP amount at the end of each year. This is simplifying the calculation, as the cashflows will actually be received monthly, but since this is done with all scenarios being compared, it shouldn't cause a problem.
See our article on the rules in effect for the CPP retirement pension.
The table of current monthly average and maximum rates can be found on the Service Canada website.
Although we tend to recommend taking the CPP earlier, unless this would affect the bridge benefits of your pension, the Society of Actuaries seems to recommend taking it later. This is discussed in the September 2020 Life in the Tax Lane video.
Tax Tip: This is a very personal decision, and must be tailored to your individual financial situation.
Check out our other calculators.
If your earnings are changing significantly before you start collecting your CPP pension, try the Service Canada Canadian Retirement Income Calculator.
Revised: September 14, 2022
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