The Canada Revenue Agency has confirmed that the next round of Canada Pension Plan (CPP) payments will land in recipients’ accounts on Monday, April 28, 2025, advancing retirees’ and other beneficiaries’ spring finances. Whether you’ve spent decades in the workforce or only recently started contributing after arriving in Canada, understanding how CPP works—and how to make it work for you—can make a real difference to your retirement planning.
What Is the Canada Pension Plan?
The CPP is a mandatory, earnings-based insurance program funded by contributions from employees, employers and the self-employed (excluding Quebec, which has its own pension plan). It provides three core benefits:
- Retirement Pensions for Canadians aged 60 and over.
- Disability Benefits for contributors who become permanently disabled.
- Survivor Benefits for spouses or children of those who have passed away.
For newcomers who haven’t spent their entire careers in Canada, CPP still offers a dependable income stream in retirement, disability or in the event of a family member’s death.
Who’s Eligible?
To begin receiving CPP you must:
- Be 60 or older (or meet the criteria for disability or survivor benefits).
- Have made valid CPP contributions through your employment or self-employment.
- In some cases, contributions to foreign social security systems may count under Canada’s international agreements.
Special provisions also allow spouses to share pensions and recognize credits for life events such as child-rearing.
How Much Will You Receive in 2025?
Your monthly payment depends on: total years and amount of CPP contributions, your average earnings, and the age at which you opt to start benefits. For 2025:
- Maximum monthly benefit: $1,364.60 (for those with the highest contribution record)
- Average monthly benefit: $816.52
(Note: The 2024 maximum pensionable earnings cap was set at $66,600; the 2025 figure may be updated later this year.)
Choosing Your Start Date
When you begin CPP has a big impact on how much you receive:
- Age 60: Up to 36% reduction (0.6% per month before 65).
- Age 65: Full, unreduced pension.
- Ages 66–70: Increase of 0.7% per month delayed (up to 42% more if you wait until 70).
Delaying past 70 does not yield further increases, so balance your need for income against the potential for higher payments.
Calculating Your Benefit
The CRA’s formula:
- Career Earnings: Excludes your lowest-earning 17% of contributory years.
- Contribution Rate: A percentage of your annual earnings, up to the yearly cap.
- Age Adjustment: Early or late commencement adjusts your monthly amount accordingly.
By contributing steadily and considering a strategic start age, you can maximize your CPP income.
Post-Retirement Contributions
If you work after beginning CPP (and are under 70), you can still make Post-Retirement Benefit (PRB) contributions. These extra payments boost your pension and add flexibility to your retirement income.
How to Apply
To ensure payments start on time:
- Confirm Eligibility: Check you meet the age and contribution requirements.
- Pick a Start Date: Decide based on your financial plan.
- Submit Your Application: Use the My Service Canada Account portal or mail in a paper form.
Apply 6–12 months before you wish benefits to begin—applications for an April 2025 start should already be in process to avoid delays.
2025 CPP Payment Calendar
Mark your calendar for the rest of the year:
- April 28
- May 28
- June 26
- July 29
- August 27
- September 25
- October 29
- November 26
- December 22
(Note: If the 28th falls on a weekend or holiday, payments move to the previous business day.)
Tips for Getting the Most from CPP
- Contribute Consistently: The more you pay in, the higher your eventual pension.
- Delay When Possible: Waiting up to age 70 can significantly boost your monthly income.
- Leverage PRBs: Keep working and contributing past age 60 to grow your benefit.
- Monitor Your Record: Use your My Service Canada Account to track contributions and estimate payments.
With the spring payment scheduled for April 28, now is the perfect time to review your CPP strategy and ensure you’re on track for a secure retirement.
