When You Start CPP Can Change Your Monthly Pension for the Rest of Your Life
Canadians can start receiving Canada Pension Plan retirement benefits as early as age 60 or wait as late as age 70. But when you start matters: taking CPP at 60 can reduce your pension by as much as 36%, while waiting until 70 can increase it by as much as 42%.
Age 65 is the standard starting age for CPP. Start earlier and your monthly payment is permanently reduced. Start later and it is permanently increased. The adjustment is 0.6% lower for each month before 65 and 0.7% higher for each month after 65.
How Much Does Your Starting Age Matter?
CPP does not have one mandatory retirement age.
You can begin your retirement pension anytime from age 60 to age 70. The government adjusts your monthly pension according to when you choose to start.
| Start CPP | Adjustment Compared With Age 65 |
|---|---|
| Age 60 | 36% lower |
| Age 65 | Standard amount |
| Age 70 | 42% higher |
There is no additional financial advantage from delaying CPP beyond age 70.
What Happens If You Start CPP Before 65?
Your CPP retirement pension is reduced by 0.6% for every month you receive it before age 65.
That’s a reduction of 7.2% for each full year.
If you begin at age 60 — five years or 60 months early — the reduction reaches 36%.
60 months early × 0.6% = 36% reduction
The reduction is not temporary. Starting CPP early generally means receiving the lower monthly pension for the rest of your life, although CPP benefits continue to receive annual cost-of-living adjustments.
What Happens If You Wait Until 70?
The calculation works in the opposite direction after age 65.
Your pension increases by 0.7% for every month you delay CPP after turning 65.
That’s 8.4% for each full year you wait.
If you delay until age 70, the increase reaches 42%.
60 months × 0.7% = 42% increase
What Could That Mean in Dollars?
The maximum CPP retirement pension for someone starting at age 65 in 2026 is $1,507.65 per month.
Most Canadians do not receive the maximum. Your actual CPP pension depends on your contribution and earnings history.
But using $1,507.65 simply to illustrate the age adjustment shows how significant the difference can be.
| Starting Age | Illustrative Monthly Amount |
|---|---|
| 60 | About $964.90 |
| 65 | $1,507.65 |
| 70 | About $2,140.86 |
These age-60 and age-70 figures are simple illustrations of the 36% reduction and 42% increase applied to the 2026 maximum age-65 amount. They are not estimates of what an individual will actually receive.
Most New CPP Recipients Don’t Get the Maximum
The maximum CPP figure can be misleading if it is treated as a typical payment.
For new beneficiaries starting CPP at age 65, the government’s reported average payment for July through September 2026 is $877.01 per month.
Your own pension depends on factors including how much and how long you contributed to CPP and your average earnings during your working years.
So Should You Take CPP at 60 or Wait?
There isn’t one starting age that is right for every Canadian.
Starting early provides income sooner but produces a smaller monthly pension.
Waiting produces a larger monthly pension but means giving up payments you could have received during the years you delayed.
Your employment situation, other retirement income, savings, taxes, financial needs and expected retirement expenses can all affect the decision.
Can You Work and Collect CPP?
Yes. You do not have to stop working simply because you begin receiving a CPP retirement pension.
If you are under age 70 and continue working while receiving CPP, you may also make CPP contributions that generate additional Post-Retirement Benefits.
Those additional benefits can increase your retirement income.
CPP and OAS Don’t Follow the Same Rules
CPP and Old Age Security are separate programs.
CPP can begin as early as age 60. OAS cannot normally begin before age 65.
OAS can also be delayed until age 70, but its delayed-retirement increase is different: OAS increases by 0.6% for each month it is delayed after age 65, up to a maximum increase of 36% at age 70.
That means Canadians approaching retirement should consider the timing of CPP and OAS separately rather than assuming both pensions work the same way.
Check Your Own CPP Estimate Before Deciding
Your own numbers matter more than the maximum.
You can view your CPP contribution information and estimated retirement pension through My Service Canada Account. The Canadian Retirement Income Calculator can also help compare retirement-income scenarios.
The Bottom Line
The age at which you start CPP can make a substantial difference to your monthly retirement income.
Starting at 60 can mean a pension that is 36% lower than starting at 65.
Waiting until 70 can mean a pension that is 42% higher than starting at 65.
Before applying, check your actual CPP estimate rather than making the decision based on the maximum pension amount or on what someone else receives.
Government of Canada — When to Start Your CPP Retirement Pension
VIPNews explains Canadian government information in plain English. This article provides general information and is not personal financial or retirement advice.