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The annual cost-of-living adjustment to Canada Pension Plan benefits: what the 2.0% change for 2026 means, how it is calculated and what it is not.
Cost-of-living adjustment
Canada Pension Plan benefits already in payment received a 2.0% cost-of-living adjustment in January 2026. It is the annual indexing of an existing pension used by millions — not a new bonus or a special payment.
Indexation
The adjustment uses the Consumer Price Index. For 2026 it compares the average CPI over two 12-month periods — 163.6 against 160.4 — which produced the 2.0% figure that took effect in January.
What it is not
The annual indexation applies automatically to benefits already in payment. It is not a special claimable payment, a one-time cheque, or a raise available to every Canadian — and there is no separate application.
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