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Canada Pension Plan (CPP) Retirement Pension

Canada Pension Plan (CPP) Retirement Pension

The Canada Pension Plan (CPP) Retirement pension is a taxable income. The amount retirees receive from this plan is not affected by any other income derived from any other sources.

A person who has contributed to the plan and aged 60 years or older is eligible to receive Pension from the CPP. This pension plan can be received as early as age 60 and can be delayed up to the age of 70.

When early CPP pension is taken prior to 2012, the pension is reduced for each month of pension before or after you turn 65. This means that if you start availing of your pension at 60, it will be less than when you avail of it at the age of 65. While you may receive less than the amount you can get when you avail of the pension at 65, starting early could be a more practical and advantageous move as you cannot predict how long you will live to begin with.

The exact amount of your CPP will depend on the number of years you have contributed to this fund, though a CPP pension is calculated as 25% of the average pensionable earnings of the retiree during his contributory period. This period starts when the retiree turns 18, or in 1996, whichever is later. The period ends when he starts collecting his pension.

Your Statement of Contribution is accessible online via Service Canada, allowing you to estimate how much your CPP retirement pension will be. You may also request to have the Statement mailed to you.

On the other hand, The Québec Pension Plan (QPP) statement of contributions is called the Statement of Participation, which can also be accessed online, or can be mailed to you.

It is advised that you apply for your CPP retirement pension 6 months before you would like to start receiving pension or you can apply up to a year before you would like it to start.  According to Service Canada, it takes about 8 weeks to receive your first payment from the time they receive your application.

The CPP Retirement Pension may not be received with CPP disability benefit at the same tie. Retirees under 65 receiving a CPP retirement pension for less than 15 months are eligible for the disability benefit.



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