Nearly all individuals who work inside of Canada are eligible to contribute toward and receive benefits from the Canada Pension Plan (CPP). However, Canadians who reside in Quebec are not eligible for CPP benefits, since the provincial government of Quebec has opted out of the program. Instead, Quebec offers the Quebec Pension Plan.

Beneficiaries

Standard benefits are reserved for those who reach the full retirement age of 65, although there are provisions for people between the ages of 60 and 65 (who received a reduced amount), those with a chronic disability, and survivor benefits to those who lost someone before they reached retirement age.

Those who have paid into the system and decide to take their benefits after age 65 will receive 8.4% more for every year they hold off until age 70, when they will receive 42% more than if they had started their benefits at age 65.

The CPP also provides monthly benefits to the dependent children of disabled or deceased CPP contributors. To qualify for children's benefits, a child must either be under the age of 18 or under the age of 25 while enrolled full-time at a recognized educational institution.

Contributions and Benefits

If you are over the age of 18 and earn more than C$3,500 a year, you are required to contribute to the CPP, even if you are 澳洲幸运5官方开奖结果体彩网:self-employed. The earnings limit subject to CPP contributions is adjusted each year. For 2025, the ceiling is C$71,300.

CPP Enhancement Plan

Up until 2019, the CPP retirement benefit replaced one-quarter of a worker's average earnings, but a new enhancement plan being phased in over seven years is designed to increase that percentage to one-third. It will also increase future disability and survivor benefits.

Between 2019 and 2023, workers' contributions gradually rose from the old rate of 4.95% (valid through 2018) to 5.95% a year.

Employers' contributions are equal to those of employees. As in the U.S., self-employed workers contribute both the employee and employer portions.

In 2024, a second, 澳洲幸运5官方开奖结果体彩网:higher earnings ceiling was introduced that allows workers who earn more to make additional contributions.

Benefit Levels

The level of benefits that a worker is eligible to receive when they retire at age 65 varies depending on how much they paid into the system during their working life—a function of the amount of their contributions and the number of years they made them. Since the contribution rate, as a percentage of income, is fixed, those who earn more money are eligible to receive higher 澳洲幸运5官方开奖结果体彩网:monthly benefits from the CPP.

The average monthly benefit for a newly retired 65-year-old was C$808.14 (as of October 2024), while the maximum you could receive if you start your pension at age 65 is C$1,433.00 (as of January 2025).

The Bottom Line

The Canada Pension Plan (CPP) offers disability, retirement, and survivor benefits to contributors and their families. It has been in place since 1965 when it was introduced as a complement to Old Age Security. Essentially everyone who paid into the system during their working years is eligible for🐷 benefits. However, you do need to apply to receive benefits.