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.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Canada Revenue Agency — CPP rate 5.95%, maximum pensionable earnings and the $3,500 exemption (page dated 31 Oct 2025). How we check these numbers.