One of the biggest decisions in the Canada Pension Plan is not how much you contributed, but when you start taking it. You can begin a CPP retirement pension between ages 60 and 70, and the timing permanently changes the monthly amount.
The 60-to-70 window
The standard age to start the CPP retirement pension is 65. You can choose to start as early as 60 or as late as 70. The earlier you start, the lower the monthly amount; the later you start, the higher it is. This adjustment is set when you begin and lasts for the life of the pension.
Starting before 65
If you start before 65, your pension is reduced by 0.6% for each month before your 65th birthday. Over the full five years, that reaches a maximum reduction of 36% at age 60. The trade-off is that payments begin sooner, so you receive them for more months.
Starting after 65
If you start after 65, your pension is increased by 0.7% for each month after your 65th birthday, up to a maximum increase of 42% at age 70. There is no benefit to waiting beyond 70. Delaying means fewer months of payments but a higher monthly amount for the rest of your life.
| Start age | Adjustment |
|---|---|
| 60 | up to 36% lower |
| 65 | standard amount |
| 70 | up to 42% higher |
There is no single right answer
The best start age depends on personal factors — other income, health, whether you are still working, and how long you expect to receive the pension. Because the choice is individual, it is worth looking at your own numbers in My Service Canada Account and, if needed, discussing it with a qualified advisor. The start-age decision is separate from the annual cost-of-living adjustment, which applies to the pension once it is in payment.
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Sources
This article is general information only and is not personal financial, legal or tax advice. Any amounts and percentages are official values or simplified illustrations, not a promise about a personal pension or payment.
Figures refer to the date shown and can change. For a binding explanation of your own situation, use the official Government of Canada channels (such as My Service Canada Account) or a qualified advisor.
Baakari Wilder is an independent information resource and is not operated by, affiliated with or endorsed by Service Canada, Employment and Social Development Canada, or the Government of Canada.
