CPP Payments Schedule 2021

CPP Payments Schedule 2021

Written by Matthew Taylor
Fact-checked by Caitlin Wood
Last Updated November 8, 2021

In Canada, there are three pillars of support in the retirement system. These pillars work in unison to provide you with an income throughout your retirement. These three pillars are: 

Canadians who have retired from the workforce rely on certain government-administered programs such as the Canada Pension Plan (CPP). Many retirees use this program as their base income and top it off with their personal retirement savings or their employment-based pension plans. While the CPP payments are a form of guaranteed income, it’s important to know when you’ll get these payments and how much you’ll receive in order to properly budget. 

Learn how to start preparing for retirement success.

What is the Canada Pension Plan?

The Canada Pension Plan (CPP) was first introduced in 1995 as a measure to decrease the rise in poverty amongst retirees. It is a taxable benefit that replaces some of your income when you retire. To be exact, the CCP payment is meant to provide a quarter of your average lifetime salary. If you qualify, you’ll receive it in monthly installments for the rest of your life. In order to receive this benefit, you must apply ahead of when you want your pension to start.

Check out what is the CPP death benefit.

Who’s Eligible For CPP?

To be eligible for a CPP retirement pension, you must be at least 60 years old and have made at least one valid contribution to the CPP. Valid contributions to the CPP can come from work you did in Canada or by receiving credits from a former spouse or common-law partner upon the end of the relationship. Contributions are made until you’re 70, so long as you’re working, however, you can elect to opt out at 65.

Note: if you live in Quebec you’ll be under a different program called the Quebec Pension Plan (QPP). 

Can I Receive CPP While Working? 

Those who are 60 years old and choose to continue working can still receive their CPP payments. Working while receiving the benefit will not affect the amount you receive, however, if you choose to postpone your CCP payment, you can increase the amount you receive. 

Find more tax benefits for seniors.

CPP Payment Schedule 2021

CPP Payment Dates
January 27, 2021
February 24, 2021
March 29, 2021
April 28, 2021
May 27, 2021
June 28, 2021
July 28, 2021
August 27, 2021
September 28, 2021
October 27, 2021
November 26, 2021
December 22, 2021

How Much CPP Can You Get?

The amount your receive through your CPP payments depend on a number of factors, including:

The Age You Decide to Start Collecting CPP

Depending on the age you decide to collect your CPP payments, the amount you receive will differ. If you choose to start collecting your payments at 60 years old (the earliest you can start), you’ll receive 36% less than if you had started at 65 years old. The amount you receive before you reach 65 is decreased by 7.2% per year. You get the most when you start collecting it at age 70. For each year you delay your payments after 65, the amount you receive will increase by 7.2% per year, up to a maximum of 42%. 

Do you have a low income? Check out these tax tips for low income earners.

The Amount You Contributed to the CPP 

If you put more into the CPP when you were working, you will receive larger CPP payments when you decide to start collecting CPP. The maximum amount you can contribute is dependent on the Yearly Maximum Pensionable Earnings (YMPE).  The YMPE is used as a measure to determine how much you can contribute to your CPP each year.

Find out how much you can contribute to your RRSP.

The Time Your Contributed to the CPP 

The longer you contribute to the CPP, the more you will receive when you decide to start collecting it. In order to receive the maximum CPP amount, you’ll need to contribute to your CPP for at least 39 of your 47 working years (18 – 65 years old). 

Learn how to avoid the Old Age Security (OAS) clawback.

Your Average Earnings Throughout Your Working Life

The higher your average earnings, the more you contributed to the CPP, so the more you will receive. Moreover, your CPP excludes up to 8 years of your lowest income earnings. This significantly increases your average lifetime salary when calculating your CPP payments.

Looking for ways to increase your income? Try adding a passive income source.

Other Factors that Can Affect Your CPP Payment

  • If you’re working while collecting CPP – You can increase your CPP payments by making contributions to the CPP until the age of 70 under the CPP Post-Retirement Benefit. Every year you wait after 65, your payment will increase by 7.2% per year, up to a maximum of 42%. It’s recommended that you don’t wait past 70 to collect as there are no more increases to the CPP after 70. 
  • Periods of raising children  – Your CPP benefits may increase depending on your earnings when you were caring for your children under the age of 7.
  • Disability – If you receive a CPP disability payment, it will not be included in the calculation of the base component of a CPP benefit. This can help increase your CPP retirement pension. 
  • Pension sharing – You can share your pension with your spouse or common-law partner, which lowers your taxes in retirement by decreasing your taxable income.
  • Divorce/separation – Your CPP contributions can be split equally with your spouse or common-law partner if you separate or divorce.

How Do You Apply For The CPP Benefit? 

You can choose to Apply for the CPP benefit by applying online or by submitting a paper application.

Apply Online

You can apply online through your My Service Canada Account (MSCA). When applying online you’ll be able to choose when you want your payments to start and you’ll be able to get an estimate of what you’ll receive. After submitting the application, it’ll take 7 to 14 days before you get an answer. 

Submit Paper Application

To submit a paper application, you’ll need to download and fill out the application form called “Application for a Canada Pension Plan Retirement Pension”. Once completed, you’ll need to mail it to your nearest Service Canada office. It can take up to 120 days to get an answer, but it can take even more time if there’s any missing information on your application. 

Frequently Asked Questions

What’s the maximum and average amount you can get?

The maximum amount you can get starting at age 65 is $1,203.75 monthly. The average amount you can get is $614.21 monthly. 

Is my CPP payment taxable?

Yes, your CPP payment is taxable.

What’s the difference between CPP and QPP?

The Québec Pension Plan (QPP) is for people who have worked in Quebec and are either living in Quebec or are living outside of Canada, with your last province of residence being Quebec.

Do CPP payments increase every year?

CPP payments increase every year. Rate increases are calculated annually using the Consumer Price Index All-Items Index, and they come into effect each January.

Can you receive CPP while working?

Yes, you can receive CPP while working. Your pension amount can even be increased using the CPP post-retirement benefit, where you contribute to the CPP while you work until age 70. At this age, your CPP contributions stop, even if you’re still working. 

Bottom Line

If you’ve applied to collect the CPP, you will receive monthly payments for the rest of your life. You have to be above the age of 65 and have made at least one valid contribution to the CPP to collect it. How much you can receive depends on several factors, including when you started to collect CPP, if you’re working while collecting CPP, and your average annual earnings over your lifetime.

Rating of 5/5 based on 4 votes.

Matthew joined the Loans Canada writing team in 2021 while was finishing up a Bachelor's degree at the University of Saskatchewan. It was there that he discovered his love of writing. His work has appeared in several publications, including the Canadian Student Review and NewEngineer.com. In his spare time, Matthew enjoys reading, geocaching, and spending time with his family and pets.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

Earn An Extra 15% Cash Back

Earn An Extra 15% Cash Back

Apply for a Tangerine credit card by December 31, 2021, and earn an extra 15% back (up to $150).*

View Offer
Build Credit With Refresh Financial

Build Credit With Refresh Financial

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month

With KOHO’s prepaid VISA card you can build a better credit score for just $7/month.

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Find The Best Rate
In Your Region
Best Personal Loan Provider by Greedy Rates

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.