If you’re counting on the Canada Pension Plan (CPP) for retirement, there’s good news coming in 2025. Starting next year, eligible retirees can receive up to $1,364 per month—an increase from the $1,306 max payment in 2024. But here’s the catch: not everyone qualifies for the full amount. So, how do you know what you’ll get? Let’s break it down.
Table of Contents
Overview
The CPP is a national pension program for working Canadians. If you’ve earned an income and contributed through payroll deductions, you’re entitled to monthly CPP payments once you retire. But CPP doesn’t stop at retirement—it also offers:
- Disability benefits for those unable to work due to serious illness
- Survivor benefits for spouses or partners of deceased contributors
- Children’s benefits for dependents of deceased or disabled workers
In short, CPP is designed to support Canadians through major life events—not just retirement.
Increase
In 2025, the CPP benefit at age 65 jumps to a new high of $1,364 per month. That’s $58 more each month—or $696 more per year—than the 2024 benefit of $1,306.
This increase comes from two key factors:
- CPP is indexed to inflation using the Consumer Price Index (CPI)
- The Year’s Maximum Pensionable Earnings (YMPE) is rising to $69,700
Here’s a quick side-by-side:
Year | Max Monthly CPP (Age 65) | Annual Increase | YMPE |
---|---|---|---|
2024 | $1,306 | — | $66,600 |
2025 | $1,364 | +$696/year | $69,700 |
That extra boost is meaningful—especially with food, rent, and gas prices continuing to climb.
Criteria
Getting the full $1,364 each month isn’t automatic. You need to meet two specific criteria:
- You must have contributed the maximum CPP amount for at least 39 years
- You must begin collecting your benefit at age 65
Starting your CPP early at age 60? That decision could reduce your payments by up to 36%. Delaying to age 70, though, could increase your payment by up to 42%. Your health, job status, and personal savings will help determine the best start date for you.
Access
Not sure how much you’ll receive? It’s easy to check.
Just log into your My Service Canada Account (MSCA) online. Once there, you can:
- See your full contribution history
- Estimate your future monthly CPP amount
- Use planning tools to test different retirement ages
It’s one of the best ways to make smart decisions about when and how to retire.
Strategy
Deciding when to take CPP is a big financial move. Here’s what it looks like by age:
Start Age | Effect on Payment |
---|---|
60 | Up to 36% reduction |
65 | Standard full payment |
70 | Up to 42% increase |
If you’re still working and in good health, waiting a few extra years could lead to bigger monthly deposits—and a more comfortable retirement.
Planning
The rise in CPP payments shows that contributing consistently throughout your working life pays off. It’s not just about today’s boost. Higher earnings and more contributions help you build a stronger retirement plan.
To stay on top of your CPP:
- Track your yearly contributions
- Review your estimated CPP payment each year
- Watch for any government rule changes or enhancements
Getting familiar with these numbers now can make all the difference later.
The increase to $1,364 per month in 2025 is great news—but only if you’ve put in the work to qualify. If you haven’t already, log into your My Service Canada Account, explore your CPP estimates, and plan wisely. Your future self will thank you.