Canada CPP Pension: How Much More Do You Get If You Delay Retirement?

The Canada Pension Plan (CPP) is a monthly retirement benefit designed to provide income after you stop working. One important decision Canadians must make is when to start receiving CPP payments.

You can start CPP as early as age 60, or delay it until age 70. However, delaying your pension can significantly increase your monthly payments.

This article explains how much more you can receive if you delay CPP.

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When Can You Start CPP?

You have three main options:

• Age 60 (early retirement – reduced payments)
• Age 65 (standard retirement age)
• Age 70 (delayed retirement – increased payments)

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What Happens If You Delay CPP?

If you delay receiving CPP after age 65, your monthly pension increases.

Key rule:

• Your CPP increases by 0.7% per month you delay after age 65

This equals approximately:

• 8.4% increase per year

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Example of CPP Increase

Let’s say your CPP pension at age 65 is:

• $1,000 per month

If you delay:

• Age 66 → about $1,084 per month
• Age 67 → about $1,168 per month
• Age 68 → about $1,252 per month
• Age 69 → about $1,336 per month
• Age 70 → about $1,420 per month

👉 This means you could receive up to 42% more if you wait until age 70.

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Why Does Delaying Increase CPP?

The government increases your pension because:

• You will receive payments for fewer years
• The system balances early vs late retirement choices
• It rewards delayed retirement with higher monthly income

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Should You Delay CPP?

Delaying CPP may be beneficial if:

• You are still working after 65
• You have other sources of income
• You want higher guaranteed monthly income later

However, it may not be suitable if:

• You need income immediately
• You have health concerns
• You are fully retired with no other income

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Important Considerations

Before deciding when to take CPP, consider:

• Your health condition
• Your retirement savings
• Other government benefits (like OAS or GIS)
• Cost of living in Canada

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Official Information Source

For accurate details, visit:

👉 Government of Canada – CPP Retirement Pension

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Final Summary

Delaying CPP can significantly increase your retirement income:

✔ About 8.4% increase per year after age 65
✔ Up to 42% more if delayed until age 70
✔ Best for people who can afford to wait

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Important Note

The best time to start CPP depends on your personal financial situation. There is no one-size-fits-all answer.