One of the biggest retirement decisions you'll make is when to start taking CPP. Take it at 60 and you get money sooner, but a permanently reduced amount. Wait until 70 and you get 42% more per month for life. So which is better? Let's break it down.
How CPP Adjustments Work (2026)
| Age | Adjustment | Monthly (Max) | Annual (Max) |
|---|---|---|---|
| 60 (Early) | -36% | $873.34 | $10,480 |
| 65 (Standard) | 0% | $1,364.60 | $16,375 |
| 70 (Late) | +42% | $1,937.73 | $23,253 |
Taking CPP Early (Before 65)
Reduction: 0.6% per month (7.2% per year)
- • At 60: 36% reduction (5 years early)
- • At 62: 21.6% reduction (3 years early)
- • At 64: 7.2% reduction (1 year early)
Delaying CPP (After 65)
Increase: 0.7% per month (8.4% per year)
- • At 66: 8.4% increase (1 year late)
- • At 68: 25.2% increase (3 years late)
- • At 70: 42% increase (5 years late)
The Key Point
These adjustments are permanent and for life. If you take CPP at 60, you'll receive 36% less every single month until you die. If you wait until 70, you'll receive 42% more every month for life. This can add up to hundreds of thousands of dollars over a 25-30 year retirement.
Calculate Your CPP at Different Ages
Use our calculator to see exactly how much CPP you'll receive at 60, 65, or 70, plus breakeven analysis.
CPP Start Age Calculator
Calculate how much CPP you'll receive based on when you start taking it (60, 65, or 70).
Max 2026: $1,364.60/month
Compare: CPP at Different Ages
| Start Age | Monthly | Annual | Total by Age 85 |
|---|---|---|---|
| 60 (Early) | $873.34 | $10,480 | $262,003 |
| 65 (Standard) | $1,364.60 | $16,375 | $327,504 |
| 70 (Late) | $1,937.73 | $23,253 | $348,792 |
How it works: CPP is reduced by 0.6% per month (7.2% per year) if you take it before 65. It's increased by 0.7% per month (8.4% per year) if you take it after 65. At 60, you receive 64% of the age-65 amount. At 70, you receive 142% of the age-65 amount. The decision depends on your health, other income, and life expectancy.
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Real-World Examples
Let's look at three scenarios to see when taking CPP early vs. late makes sense:
Take CPP at 60: Health Issues + Need Income Now
When taking early makes sense
Scenario:
- •Robert, age 60: Laid off, finding work difficult
- •Health: Type 2 diabetes, family history of heart disease
- •Savings: Limited - needs income to cover bills
- •CPP at 60: $1,100/month (estimated)
Why This Works:
Robert needs income now and his health outlook suggests he may not live to the breakeven age (around 74). Taking CPP at 60 gives him immediate cash flow and if he passes away at 72, he'll have received more total CPP than if he waited. Plus, he avoids burning through savings or going into debt.
Take CPP at 65: Standard Retirement
The most common choice
Scenario:
- •Linda, age 65: Retiring from teaching after 35 years
- •Health: Good health, average life expectancy
- •Pension: Defined benefit pension of $3,500/month
- •CPP at 65: $1,364.60/month (max)
Why This Works:
Linda doesn't need CPP early because she has a good pension. She also doesn't need to delay to 70 because her combined income is already comfortable. Taking CPP at 65 provides a balanced approach — she gets the standard amount without early penalties, and she can start enjoying retirement income right away. If she lives to 85, she'll have received ~$327,000 in CPP.
Delay CPP to 70: Maximize Lifetime Income
When waiting pays off big
Scenario:
- •Margaret, age 70: Self-employed consultant, still working part-time
- •Health: Excellent health, family history of longevity (parents lived to 95+)
- •Income: $40,000/year from consulting, doesn't need CPP yet
- •CPP at 70: $1,937.73/month (max + 42% boost)
Why This Works:
Margaret doesn't need the money now (still working), is in excellent health, and has longevity in her family. By waiting to 70, she locks in a 42% higher payment for life. If she lives to 90 (20 years), she'll receive $465,060 total — compared to $349,800 if she took it at 65 or $262,800 if she took it at 60.
Even though she "missed" 10 years of payments (60-70), the higher monthly amount more than makes up for it if she lives past the breakeven age of ~80.
When Should You Take CPP?
Take CPP Early
- ✓Health issues or shorter life expectancy
- ✓Need income now, limited savings
- ✓Unemployed with no job prospects
- ✓Want to enjoy money while younger and healthier
- ✓No other pension or guaranteed income
Take CPP Standard
- ✓Retiring at normal retirement age
- ✓Average health and life expectancy
- ✓Have other retirement income (pension, savings)
- ✓Want the balanced approach
- ✓Coordinating with OAS start
Delay CPP
- ✓Excellent health, family longevity
- ✓Still working or have other income
- ✓Don't need CPP money yet
- ✓Want to maximize lifetime income
- ✓Concerned about inflation protection
Frequently Asked Questions
Frequently Asked Questions
Q:Can I work and collect CPP at the same time?
A:Yes, you can work and collect CPP at any age. However, if you're under 65 and working while receiving CPP, you must continue making CPP contributions. If you're between 65 and 70, CPP contributions are optional (you can elect to stop). These additional contributions create CPP Post-Retirement Benefits (PRB) that increase your CPP payments. After 70, you no longer contribute to CPP even if working.
Q:Can I take CPP and OAS at different ages?
A:Yes, CPP and OAS are completely independent programs. You can take CPP as early as 60 but must wait until 65 for OAS (or defer OAS to 70 for a 36% increase). Many Canadians take CPP early at 60-64 while waiting to start OAS at 65 or later. Your decision on one does not affect the other.
Q:What is CPP2 (CPP enhancement)?
A:CPP2 is the Canada Pension Plan Enhancement introduced in 2019. It gradually increases both contribution rates and maximum benefits. By 2025, CPP2 is fully implemented, allowing Canadians to receive up to 33.33% of their average earnings (up from 25%) in retirement. If you're working now, you're contributing to both CPP and CPP2, which will increase your retirement benefits.
Q:What happens to my CPP if I die early?
A:If you die, your CPP stops. However, your surviving spouse or common-law partner may be eligible for a CPP survivor's pension (up to 60% of your CPP). Your dependent children under 18 (or under 25 if in school) may receive a CPP children's benefit. Your estate may receive a one-time CPP death benefit of $2,500. This is why the breakeven age matters - if you die before breakeven, taking CPP early results in more total money for you and your family.
Q:Can I change my mind after I start CPP?
A:Yes, but only within 12 months of starting CPP and only if you haven't reached age 70. You must repay all CPP payments received, then reapply later at a higher rate. This is rare but possible if you realize you made the wrong decision. After 12 months, your decision is permanent.
Q:How much CPP will I actually get?
A:Your CPP amount depends on how much and for how long you contributed to CPP during your working years. The maximum at age 65 in 2026 is $1,364.60/month, but most Canadians receive less. The average CPP payment is around $815/month. Check your exact amount by logging into My Service Canada Account - it shows your personalized CPP estimate based on your actual contribution history.
Question: Can I work and collect CPP at the same time?
Answer: Yes, you can work and collect CPP at any age. However, if you're under 65 and working while receiving CPP, you must continue making CPP contributions. If you're between 65 and 70, CPP contributions are optional (you can elect to stop). These additional contributions create CPP Post-Retirement Benefits (PRB) that increase your CPP payments. After 70, you no longer contribute to CPP even if working.
Question: Can I take CPP and OAS at different ages?
Answer: Yes, CPP and OAS are completely independent programs. You can take CPP as early as 60 but must wait until 65 for OAS (or defer OAS to 70 for a 36% increase). Many Canadians take CPP early at 60-64 while waiting to start OAS at 65 or later. Your decision on one does not affect the other.
Question: What is CPP2 (CPP enhancement)?
Answer: CPP2 is the Canada Pension Plan Enhancement introduced in 2019. It gradually increases both contribution rates and maximum benefits. By 2025, CPP2 is fully implemented, allowing Canadians to receive up to 33.33% of their average earnings (up from 25%) in retirement. If you're working now, you're contributing to both CPP and CPP2, which will increase your retirement benefits.
Question: What happens to my CPP if I die early?
Answer: If you die, your CPP stops. However, your surviving spouse or common-law partner may be eligible for a CPP survivor's pension (up to 60% of your CPP). Your dependent children under 18 (or under 25 if in school) may receive a CPP children's benefit. Your estate may receive a one-time CPP death benefit of $2,500. This is why the breakeven age matters - if you die before breakeven, taking CPP early results in more total money for you and your family.
Question: Can I change my mind after I start CPP?
Answer: Yes, but only within 12 months of starting CPP and only if you haven't reached age 70. You must repay all CPP payments received, then reapply later at a higher rate. This is rare but possible if you realize you made the wrong decision. After 12 months, your decision is permanent.
Question: How much CPP will I actually get?
Answer: Your CPP amount depends on how much and for how long you contributed to CPP during your working years. The maximum at age 65 in 2026 is $1,364.60/month, but most Canadians receive less. The average CPP payment is around $815/month. Check your exact amount by logging into My Service Canada Account - it shows your personalized CPP estimate based on your actual contribution history.
Watch Our Complete Video Guide
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