Updated October 1, 2026. One of the biggest retirement questions in Canada is whether to start the Canada Pension Plan (CPP) at 60, wait until the standard age of 65, or delay it until 70.
The choice matters because the age you start CPP permanently changes your monthly payment.
Start early and you receive money sooner, but each monthly payment is smaller. Wait longer and you give up several years of payments in exchange for a larger monthly amount for life.
This guide compares CPP at 60 vs 65 vs 70 using simple examples so you can see the trade-offs without getting lost in pension jargon.
Important: This article explains the math and the current CPP rules. It does not tell you which age you should choose. Your own contribution record, income, taxes, savings, work plans and other retirement benefits can change the result.
CPP At 60 Vs 65 Vs 70: The Quick Answer
The standard age to begin CPP is 65. You can start as early as 60 or delay until as late as 70.
- Before age 65, CPP is reduced by 0.6% for every month you start early.
- Starting at exactly age 60 means a 36% permanent reduction from your age-65 amount.
- After age 65, CPP increases by 0.7% for every month you delay.
- Waiting until age 70 means a 42% increase over your age-65 amount.
- There is no additional increase for waiting past age 70.
Government source: CPP retirement pension: When to start your pension.
A Simple $1,000 CPP Example
The easiest way to understand the difference is to start with a round number.
Suppose your estimated CPP at age 65 is $1,000 per month.
| Start CPP | Adjustment | Illustrative monthly CPP |
|---|---|---|
| Age 60 | 36% reduction | $640 |
| Age 65 | No age adjustment | $1,000 |
| Age 70 | 42% increase | $1,420 |
The difference between starting at 60 and waiting until 70 is $780 every month in this example.
But the person who starts at 60 has already received ten years of CPP by the time the person waiting until 70 receives the first payment. That is why comparing only the monthly amount does not tell the whole story.
What Does The 2026 Maximum CPP Look Like At Different Ages?
In 2026, the maximum new CPP retirement pension at age 65 is $1,507.65 per month. The average amount for a new age-65 beneficiary reported for July 2026 is much lower at $858.34 per month.
Government source: Canada Pension Plan monthly payment amounts.
If we use the 2026 maximum age-65 amount only as a simple illustration of the age adjustment, the comparison looks like this:
| Start age | Age adjustment | Illustrative monthly amount |
|---|---|---|
| 60 | -36% | $964.90 |
| 65 | 0% | $1,507.65 |
| 70 | +42% | $2,140.86 |
These age-60 and age-70 figures are illustrations, not published maximums for a person starting in those years. Actual CPP payments depend on your contribution history, the year you begin, CPP indexation and other parts of the CPP calculation.
The more useful number is the estimate in your own My Service Canada Account.
What Is The CPP Break-Even Age?
People often ask how long it takes for the higher payment from waiting to catch up with the money received by starting earlier.
There is no universal break-even age because everyone’s CPP estimate and circumstances are different. But we can show the basic math using our $1,000-at-65 example.
CPP At 60 Vs 65
Starting at 60 gives you $640 per month for five years before age 65.
By your 65th birthday, that is approximately $38,400 collected.
At 65, the difference between the two monthly payments becomes $360:
$1,000 – $640 = $360
Ignoring taxes, investment returns, indexation and other factors, the age-65 option catches up at roughly age 74.
CPP At 65 Vs 70
Starting at 65 gives you five years of $1,000 payments before age 70, or about $60,000.
At 70, the delayed payment is $420 more each month:
$1,420 – $1,000 = $420
Using the same simplified math, waiting until 70 catches up at roughly age 82.
CPP At 60 Vs 70
The person starting at 60 receives about $76,800 before the person waiting until 70 receives a first payment.
At age 70, the monthly difference is $780.
In this simplified example, the age-70 option catches up at roughly age 78.
CBB note: Break-even calculations are useful for understanding the trade-off, but they are not a prediction of which choice will leave you better off. Taxes, inflation adjustments, investment returns, working after retirement, GIS eligibility and your personal CPP record can all change the picture.
Why Someone Might Start CPP At 60
Starting CPP early provides income sooner.
That may matter if you have retired, reduced your work hours, have little other income or need your CPP to help cover regular expenses.
The trade-off is permanent: starting at 60 reduces the age-65 pension by 36%.
For example, someone expecting $1,000 at 65 would receive roughly $640 at 60 under the current age-adjustment rules.
Starting CPP early can also affect other income-tested benefits. CPP is taxable income and can reduce the Guaranteed Income Supplement (GIS) for a lower-income senior.
Related: CPP, OAS and GIS: How Much Can You Get in Canada?
What Happens If You Start CPP At 65?
Age 65 is the standard CPP starting age.
There is no early-start reduction and no delayed-start increase at that point.
For someone whose personal age-65 estimate is $1,000 per month, starting at 65 means receiving that $1,000 amount before future indexation.
Starting at 65 also means you do not have to finance the five-year gap from 65 to 70 that comes with delaying CPP further.
What Happens If You Wait Until 70?
CPP increases by 0.7% for every month you delay after 65.
That works out to:
- 8.4% after one year
- 16.8% after two years
- 25.2% after three years
- 33.6% after four years
- 42% at age 70
Someone with a $1,000 age-65 estimate would therefore receive approximately $1,420 at age 70 before considering other changes in their pension calculation.
Waiting requires another source of income during those five years. That could come from employment, a workplace pension, RRSP/RRIF withdrawals, a TFSA, savings or other income.
There is no CPP advantage to waiting beyond age 70.
Can You Work While Receiving CPP?
Yes. You can work while collecting CPP.
If you are receiving CPP and working between ages 60 and 65, CPP contributions are generally mandatory. Those contributions can create a Post-Retirement Benefit (PRB), which is added to your CPP.
Between ages 65 and 70, you can choose to stop contributing. Employees generally make that election using CRA Form CPT30. CPP contributions stop at age 70 even if you continue working.
Government sources: CPP Post-Retirement Benefit and CPP contributions for working beneficiaries.
What If You Receive A CPP Survivor’s Pension?
This is an area where simple online calculators can be misleading.
If you receive both a CPP retirement pension and a CPP survivor’s pension, the benefits are combined into one payment. The combined payment is not necessarily the sum of the two separate pensions.
The calculation depends on your age and the benefits involved, and maximum rules apply to the base CPP components.
If survivor benefits are part of your situation, check your personal numbers with Service Canada rather than assuming that starting CPP earlier or later will simply add a fixed survivor amount on top.
Government source: CPP survivor’s pension.
Could CPP Affect Your GIS?
Yes.
CPP is taxable income, and GIS is income-tested. Receiving CPP can therefore reduce the GIS amount a lower-income senior receives.
This is one reason the largest possible CPP payment is not always the only number that matters when looking at retirement income.
We are covering this separately in the CBB seniors series because RRSP/RRIF withdrawals, employment income, CPP, investment income and TFSAs can all be treated differently when GIS is calculated.
CPP Is Taxable Income
CPP retirement benefits are taxable.
When comparing start ages, consider the after-tax amount rather than looking only at the gross monthly CPP deposit.
Someone still earning employment income at 60 may have a different tax situation than the same person after retiring at 65 or 70.
How To Find Your Own CPP Estimate
The $1,000 example in this article is useful for understanding the percentages, but your personal CPP amount may be very different.
Log into My Service Canada Account and look for your CPP benefit estimates and Statement of Contributions.
Before comparing ages, write down:
- your estimated CPP at 60
- your estimated CPP at 65
- your estimated CPP at 70
- your other retirement income
- your expected monthly expenses
- whether you may qualify for GIS
- whether you plan to keep working
Then put those numbers into a retirement budget rather than making the decision from one pension figure alone.
Related: How To Estimate Your Canadian Retirement Budget
Questions To Ask Before Choosing A CPP Start Age
Instead of asking only, “Which age pays the most?”, consider the larger retirement picture.
- Do I need the income now?
- Will I continue working?
- What other pensions and savings do I have?
- Could CPP reduce my GIS?
- What is my tax situation at each age?
- Do I have savings to bridge the years if I delay CPP?
- Do I receive a survivor’s pension?
- What does my monthly retirement budget actually require?
The Bottom Line
CPP gives Canadians flexibility, but the trade-off is straightforward.
Starting at 60 means receiving money sooner with a permanently smaller monthly pension. Starting at 65 avoids the age adjustment. Waiting until 70 produces a substantially larger monthly pension but requires giving up five additional years of payments.
Using a $1,000 age-65 CPP estimate:
- 60: about $640/month
- 65: $1,000/month
- 70: about $1,420/month
The best way to compare the choices is to use your own CPP estimate, your other retirement income and a realistic monthly budget.
Discussion: If you are comfortable sharing, what age did you start CPP, or what age are you considering? What is the biggest factor in your decision?
Man, that’s a tough call. Have you made a decision about what you want to do?
Everyone’s situation is different and must be evaluated as such. Hubby and I have no debt plus hubby is still 12 years from a retirement at age 65 with a full municipal pension that will be paid to the surviving spouse, if I survive him. I am turning 59 in December. Since we are living very carefully but satisfactorily on hubby’s salary, our current plan is that we’ll postpone receiving my CPP payments until my age 70 (he’ll be 64). The OAS will start for me at age 65 & be saved for a future “final” vehicle purchase. That having been said it also assumes that no health or other emergency situations arise to change our needs. I increase my CPP payments by 84% by waiting until age 70 and as I have no pension plan, this delay will keep my standard of living far healthier if hubby pre-deceases me & I lose his CPP/OAS. Hubby will presumably be working at age 64 when my CPP payments start and we’ll tuck away that year’s worth of my CPP income into our Tax Free Savings accounts for possible rainy day expense needs. It all depends on how much you need and when you are going to require the funds. 🙂
It looks like you Canadians have the same CPP concerns as Americans and their Social Security as far as when is the best time to start payments. I am now 56 and few years from the same decision but here there is also another wrinkle to consider and that is if you are married and the impact to survivor benefits. You made no mention of that so I don’t know if CPP doesn’t have the same transfer benefit of the higher payments to the surviving spouse or not. With you being younger if his CPP is estimated to be more than yours then you should take that into consideration. My current plan is to hold off to my full retirement age 66 & 7months because of that reason. If you have no survivor benefit concerns then its all about unknown longevity and the bird in the hand. If you need the money then I say take it. If you don’t and have other funds to finance his retirement, then I would wait. I will probably enlist the help of a good financial planner to help me with my final decision when I turn 62.
I’m sorry I’m of no help here! It seems like there are a lot of factors to consider, and from what you’re saying, it looks like a good idea to take it now. $18k more toward debt is tempting! That’s rather annoying that Service Canada is unable to tell you how the survivor benefits will pan out in the future, though.
This is a no brainer. Take the pension now. If you had no debt and did not need it, you would still take it and invest it at about a 7% return (stock market) and you would be way ahead of those who wait until 65 or 70. You know that Service Canada could, and likely will, change the rules again. The only winners are those already receiving their pensions. I took mine at age 60, and have never looked back.
Wow! I had to read through that twice just to try to get a handle on it … and still not quite sure I understand it all. Being a neighbor to the south, I was interested in the read because I know nothing about your CPP. Based on my read, it seems like taking it now might be the wiser move.
Love the sub-title in the header, “It’s not about how much money you make, it’s how you save it.” I often say something similar. “”It’s not about how much you make, it’s about what you do with it.”
We are still leaning towards applying for it early. However, I don’t like to make hasty decisions without doing my homework. Plus there’s a wonderful network of PF bloggers out here who may be able to weigh in, which is part of the reason I put this out here. All inputs gratefully considered! Thanks for reading, Genevieve!
Sounds like you have thought things through, Mary. We have some money (8 months of emergency fund) in TFSA’s, but we are no longer contributing to them while we are paying off debt. When we eventually downsize our home we will top up our TFSA’s, unless we decide to buy a rental property. I think it’s great that you can wait until you are 70 to apply for your CPP. I haven’t figured out yet when I will apply for mine. I will delay as long as possible but we’ll have to see how our cash flow looks at that time. Thanks for sharing how you are going about it all. It’s a difficult decision so I like to understand the different aspects people are factoring into their decision.
Thanks for your comment, Tommy. My CPP will be higher than his so I think this is not a concern for us, but very good point. In addition, since we could use all possible funds to pay off debt now, this is why we are considering taking it early.
I know, it is annoying. It’s like it’s some information that they don’t have when you call them. In addition, of course they will only speak to him, and I tend to have tons of questions. So sometimes when we call I get him to put it on speaker and advise them that his wife is listening in so I can speak up when I have a question he didn’t think of! Thanks for visiting, Erin!
I think that you’ve made the right decision. Boy, you have those numbers down! The early CPP will benefit you both in the short term, and in the long term, you’ll benefit from your acquired frugality and wise and abundant investments. Good choice!
Some interesting information about CPP in the article. We are in a different kettle of fish here as hubby has Amyloidosis and is currently collecting CPP-Disability because he can’t work. We also get Ontario Disability Supplimental payments from the On Government. Hubby is 59 now and we do know that his payments from CPP will go down when/if he turns 65. I’ve been a stay at home parent for years so I don’t even know right now what I would get when I turn 65 as I haven’t worked outside the home in years. I should look into this all before then. Right now his Amyloidosis is stable but we see a cardiologist in December for more information on how this is progressing.
All you can do is make the best decision you can at this time and hope it works out for you…..Good luck
Based on your graph, the cumulative numbers are pretty much equal by age 83… if this is accurate, I say apply for CPP now 🙂
You definitely have a lot to consider, Deb. My parents are going through a similar situation as they weigh their options for social security and their pensions. Fewer and fewer Americans are being offered pensions these days and it’s hard to say if social security will still exist (in its current state) by the time I’m old enough to collect it (30+ years). I can tell you’ve put a lot of thought into your decision and carefully run the numbers. Best of luck in whichever route you decide!
Great analysis. The thing that strikes me immediately is how small the payments are. I think of all the people that are counting on nothing more than CPP and OAS. What a rude awakening! Tough decision – I think you have made some points about taking it now. You can move up debt repayment, you don’t know what tomorrow might bring and a bird in the hand…. Good luck and interested to know how it goes.
@ May ~ The payments are lower than normal as he had some unemployed and lower income years. I expect I will have more than $1K per month because I pretty much contributed the maximum every year except for when I was on maternity leave and you are able to throw out at least 7 of your lower income years. I think it’s actually higher than 7 now. But you are right. People relying strictly on this would be in the lower income level for sure.
That decision is a ways off for me but I have worked with a few clients in the past who have taken it early (similar situation as yours) and did not regret the decision. Personally I would take it early. I know the rules have changed and it’s not as great as it was before but I still think it’s better to take it early rather than waiting. Sure, you can wait longer and the payments will be higher but how long is too long?
I am also a widow, and receiving Survivor’s Benefits. The formula for the SB is complicated. I ended up contacting a guy who used to work for the government in the CPP department. For $25 he ran the numbers for me, so at least I can make an informed decision when the time comes. His website is http://www.DRpensions.ca, or you can contact him on the Canadian Money Forum in the Retirement section. He is very helpful.
I am 55, and when my husband died we had a home equity line of credit of $93K and our mortgage was $25K. I paid off the mortgage with the life insurance money, and have almost paid off the heloc. There were other financial factors at play, which I won’t get into here. You can email me, or read about them on my journal at MMM if you want. http://forum.mrmoneymustache.com/journals/prairie-gal's-fi-journal/
I also may be eligible for the Allowance for the Survivor at age 60, but your husband wouldn’t be since he is remarried.
The long and the short of it is, the longer I can wait to retire, and collect a combined CPP/Survivor’s Benefit, the more I am going to get, and the more comfortable my retirement will be. Makes sense. The problem is, I want to retire now dammit! lol! This is not possible, though, so I will continue slaving away as long as possible.
Good luck with your decision. It sounds as if you have thought about it carefully.
Since longevity is always uncertain, that’s why we’re thinking of going with the sure thing. Thanks for visiting, Prudence!
Hi Christine ~ you can contact Service Canada at the links included in the article you will find some phone number information and request a statement of earnings to date for yourself for your planning purposes. I agree, some stuff you can’t control but since there are some options available, it’s good to have all the information up front so you can decide what is best for you. Sorry to hear about your husband’s disability. It’s never easy when we must face these challenges. Glad to hear he is stable and hope he continues this way. 🙂
@Maria ~ exactly, that is the break-even point. His Dad died at 81 and his mom is alive at 83 now. Not that you can entirely use your parent’s longevity as a guideline. If we take the CPP now and he lives beyond 83, we will just be thankful that he is still alive. 😉 A bit morbid to think this way, but that’s life!
@Kate ~ Thanks for sharing and for your confidence in my number crunching! he he
I’m interested to see how government pensions / social security morph and change for millennials.
The times they are a changin’!
@Dan – from the people we have talked to, all are taking early. My Dad did not because he didn’t retire until 71!
@Judy – Thank you so much for the great contact. I’m sorry you lost your husband at such a young age. That’s really sad and to have financial worries on top of that is difficult. It sounds like you are approaching things very logically and methodically to help bolster your retirement income as much as possible. I’m going over to the MMM forum now to read your story. I love finding new PF contacts who are in my age bracket. 🙂
Wow, you’ve done a great job thinking this through. It’s hard enough working through the differences between early and full retirement, without also adding in the ambiguities about your husband’s widower benefit. My husband and I are U.S. citizens and are waiting for full retirement age before drawing social security. In theory we could earn more (8% per year) if we hold off past full retirement but aren’t going to wait that long. I’m glad we don’t also have the complications of surviving benefits to work through…
Great job running the numbers Deb — sounds like you have a good handle on a challenging scenario.
No right answer for all, as these decisions are always difficult. I like to think of it this way. The government is handing out money when I’m 60, sounds like a great deal. What if they change their minds like OAS. I want to start collecting this benefit as soon as they make it available. In my situation I will take the monthly and invest it immediately. I plan on working PT until 65, I will still be contributing to CPP and my monthly will continue to grow. Good Luck
@Jean – Sounds like you’ve run your numbers too. Thanks for reading and commenting.
@Peter – This is a good point, and why we are leaning this way, even though we will have to pay income tax on the income. Thanks for sharing your views.
I would apply for the CPP benefits as early as possible. The break even point may be a couple decades down the road, but the enjoyment your husband will experience from the money he receives now will be greater than spending money after he turns 83 years old.
I am on the verge of this decision also, and am closing in on 62. I retired at 60 over a year ago. Like you I have been doing calculations although my situation is complicated in different ways. I have to also decide when to stop contributing the maximum to CPP. I may start using my RSP first so that I do not have to pay CPP tax any more (I am self-employed). I think you can ignore inflation as CPP indexes. However, it costs 4,600 per year for the CPP premiums and that is a huge penalty when the reward is 20 years down the road. In my calculator I work in the value of investing the income also – in your case that is paying down debt. Plus the CPP premiums are tax deductible whereas the payments are taxable. I try in include all of this into a big spreadsheet.
Service Canada will estimate your CPP. The estimate becomes a promise once you hit 60. Worth watching your account there.
In all of my calculations the payoff for waiting ends up being in the late 70’s at least. My family tends to live long, but for the most part the expensive years are the earlier ones. I travel a lot now. My travel will be modest by the time I hit 80. Many of my activities will be strictly simple low-cost ones. So I figure if the calculation looks anything like this a person should take CPP earlier, when the money is more needed.
Just wait till the Silver Tsunami hits the nation – just few yrs away.
Ottawa works with ancient and retarded formulas, their intention is to choke and kill elders.
Right now we have an insane left wing Fascist govt – that helps Syrians, blacks – no whites have much chance in receiving social help. In some countries, an older citizen is respected by law and society – in Canada hardly nobody gets up on he subway when a senior citizen walks by.
I am 72, my daily combined pension is $ 55/day – CPP/OAS/GIS and Ontario Trillium – none of the elected politicians are willing to help or listen. I never had company pension, never had a union job,
Politicians work for themselves, they lie and steal, and exploit those they supposes to look after.
Our federal politicians are only helping those form Syria and Haiti.
I am in Montreal and unable to meet my federal MP or local Deputy.
They are both liberals.Too busy,
I am white, those they are focused on helping are NOT.
Is not this racism?
My daily combines pension is $ 52.
Psl advise.