What is the CPP Benefit?
The Canada Pension Plan pays a monthly retirement benefit based on your contributions and earnings history. The standard start age is 65.
Starting early reduces it by 0.6% per month — 36% at 60. Delaying increases it by 0.7% per month — 42% at 70. Both adjustments are permanent and the benefit is indexed to inflation for life.
Formula & worked example
Delayed: +0.7% per month after 65 (max +42%)
Worked example: a 1,100 benefit at 65 becomes 704 a month at 60, or 1,562 at 70. Living to 87, starting at 70 pays roughly 318,600 versus 228,100 starting at 60 — a difference of over 90,000.
How to use this cpp benefit calculator
- Get your CPP estimate at 65 from your My Service Canada Account.
- Try different start ages to compare monthly and lifetime totals.
- Adjust life expectancy — it drives the answer more than any other input.
- Remember CPP is separate from OAS, which has its own rules.
Smart tips
- The break-even between starting at 60 and 70 is typically around age 82. Beyond that, delaying wins clearly.
- CPP is fully indexed to inflation, so delaying buys an inflation-protected, guaranteed lifetime income.
- Consider drawing down RRSPs first and delaying CPP — this often reduces lifetime tax and OAS clawback.
- CPP is taxable income, and can be split with a spouse for tax purposes.
- Contributions while receiving CPP before 70 earn the Post-Retirement Benefit, adding to your monthly amount.
Frequently asked questions
When should I start CPP?
If you expect to live past your early 80s and do not need the income, delaying to 70 typically maximises lifetime benefits.
How much is CPP reduced if I take it at 60?
36% permanently — 0.6% for each of the 60 months before age 65.
How much more do I get by waiting until 70?
42% more than at 65 — 0.7% for each of the 60 months after age 65.
Is CPP taxable?
Yes, CPP is fully taxable income. It can be shared with a spouse to reduce combined tax.
Want the theory behind the numbers? Read our Canada retirement guides on the Money Blog.