Starting in 2025, pensioners in Canada are seeing higher payouts from the Canada Pension Plan (CPP). With the monthly maximum benefit now raised to $1,364, this increase comes at a time when inflation and daily living costs are squeezing retirees more than ever.
Whether you’re currently retired or planning ahead, knowing these changes can help you better prepare for your future income.
Let’s break down what’s changed, who qualifies, and how to check your CPP benefits.
What Is CPP
The Canada Pension Plan is a government-run social insurance program designed to replace part of your income in retirement. If you’ve worked in Canada and paid into CPP through payroll deductions, you’re building eligibility.
CPP benefits typically cover:
- Retirement pensions
- Disability benefits
- Survivor and children’s benefits
Most people start collecting CPP at age 65, but you can apply as early as 60 or delay it until age 70 for a larger monthly amount. The longer you wait (up to age 70), the more you receive.
Changes
The biggest update for 2025 is the new maximum monthly CPP retirement benefit, now set at $1,364 for those who start receiving benefits at age 65. That’s an increase of $58 per month from 2024’s maximum of $1,306.
Here’s why this increase happened:
- Standard inflation adjustment based on the Consumer Price Index (CPI)
- Continued implementation of CPP enhancement measures introduced in recent years
- A rise in the Year’s Maximum Pensionable Earnings (YMPE), now $69,700 for 2025
These combined factors help ensure that CPP keeps pace with inflation and cost-of-living increases.
| Year | Max CPP @ 65 | Annual Increase | YMPE (Earnings Limit) |
|---|---|---|---|
| 2024 | $1,306 | — | $66,600 |
| 2025 | $1,364 | +$58/month | $69,700 |
Over the course of a year, the 2025 bump adds roughly $700 in extra income for those receiving the full amount.
Who Qualifies
Not every retiree will get the full $1,364 per month. To receive the maximum amount, you must:
- Have made maximum contributions to CPP for at least 39 years
- Begin collecting CPP at the standard age of 65
Taking CPP early at age 60 reduces your benefit by about 36 percent. On the flip side, delaying until age 70 increases your monthly benefit by up to 42 percent.
This flexibility allows retirees to time their CPP start based on personal financial needs.
How To Check
Wondering how much you’ll actually get from CPP?
Log into your My Service Canada Account to view:
- Your total CPP contributions
- Your estimated monthly benefit
- Your retirement planning options
It’s a great tool to stay on top of your retirement planning and see where you stand.
Why It Matters
With costs rising everywhere—from groceries to rent—getting the most from your CPP benefits matters more than ever. This 2025 increase helps retirees keep up and signals the government’s ongoing effort to strengthen Canada’s public pension system.
For those still working, it’s also a reminder of the value of long-term, consistent contributions. Every year of work and every dollar in CPP contributions brings you closer to maximum retirement income.
FAQs
How much is CPP in 2025?
The maximum monthly CPP in 2025 is $1,364 at age 65.
What age should I start CPP?
You can start CPP anytime from 60 to 70, but 65 is standard.
How do I check my CPP estimate?
Log in to your My Service Canada Account to view it.
Is CPP based on income?
Yes, it’s based on your contributions over your working years.
Can I increase my CPP payments?
Yes, by delaying CPP to age 70 or contributing more over time.
