If you work in Canada, whether you have a job or run your own business, you are required to make contributions to the Canada Pension Plan (CPP). In the same way, the Canada Revenue Agency (CRA) will deduct a portion of your earnings to be used as retirement benefits.
Start Making Contributions Early
To have a larger payout from the Canada Pension Plan, you must begin making contributions early. You must contribute for a long time with consistency and aim to reach the maximum contribution levels, so that you may receive a higher pension upon retirement.
Delay Benefits To Age 70 For A Bigger Payout
Your CPP benefits are optimized when you delay your benefit start date until age 70. Doing this enables you to increase your monthly payouts by 42 percent as compared to starting at age 65. Each month after 65 that you delay your pension, it increases by approximately 0.7 percent, leading to this sizeable increase.
Take Advantage Of Other Retirement Programs
Increasing your retirement income usually means looking beyond just the Canada Pension Plan. The combinación of the Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) along with the CPP can greatly enhance your financial well-being.
Monitor Your Contributions
It’s important to keep track of your contribution history. This can be checked through the CRA My Account or My Service Canada Account, both of which provide your past contributions as well as future CPP benefit projections. These projections allow you to make calculated decisions related to retirement and effectively manage other finances.
The Impact Of CPP Enhancement
With the new adjustments to CPP, the pension now offers one third (33.33%) of the average career earnings as compared to 25% before. The pensionable earnings threshold has similarly seen an increase of 14% over the years 2024 to 2025. These adjustments, which are gradually realized, will significantly increase the benefits, especially for those who have been contributing at the maximum level for many years.
Familiarize Yourself With The 2025 CPP Payment Dates
In 2025, CPP benefits are issued on the third last day of work each month:
- July 29
- August 27
- September 25
- October 29
- November 26
- December 22
Also Read: $735 Monthly OAS Boost Confirmed: Check Eligibility & Payment Schedule