The Canada Pension Plan (CPP) is one of the most important retirement programs for Canadians. It provides a steady monthly income to retirees, people with disabilities, and surviving family members of contributors.
If you’ve worked in Canada and paid into CPP through payroll deductions, you’re building up your entitlement. How much you receive depends on your contributions and when you choose to start collecting.
Besides retirement benefits, CPP also offers:
- Disability payments for those unable to work due to serious illness or injury
- Survivor benefits for a spouse or common-law partner
- Children’s benefits for dependent children of deceased or disabled contributors
Increase
In 2025, the CPP maximum retirement benefit at age 65 rises from $1,306 in 2024 to $1,364—a $58 monthly boost. This means retirees eligible for the full amount will see an extra $696 a year.
The increase comes from:
- Annual inflation adjustment using the Consumer Price Index (CPI)
- Ongoing CPP enhancements
- A higher Year’s Maximum Pensionable Earnings (YMPE), now $69,700 for 2025
Comparison
| Year | Max Monthly CPP (Age 65) | Annual Increase | YMPE |
|---|---|---|---|
| 2024 | $1,306 | — | $66,600 |
| 2025 | $1,364 | +$58/month | $69,700 |
Eligibility
To receive the maximum CPP payment in 2025:
- You must have contributed the maximum amount for at least 39 years
- You must start collecting at age 65
Starting early, at 60, could reduce your payment by up to 36%. Waiting until 70 can increase it by as much as 42%. The choice depends on your health, finances, and retirement plans.
Checking
You can check your CPP estimate by logging into your My Service Canada Account (MSCA). Inside your account, you can:
- Review your contribution history
- See your estimated monthly retirement benefit
- Use tools to plan your retirement income
This helps you make informed choices and understand how your working years affect your pension.
Importance
The 2025 CPP increase matters because inflation has made essentials like groceries, gas, and housing more expensive. Boosting CPP helps retirees keep up with rising costs.
The higher YMPE also means today’s workers contribute more now but can expect larger benefits in the future.
Timing
When you start collecting CPP has a big impact:
- Age 60: Up to 36% less
- Age 65: Full standard benefit (up to $1,364/month)
- Age 70: Up to 42% more
If you have other income sources and good health, waiting could give you a stronger income later in life.
Future
If you’re still working, this increase is a reminder to stay on top of your retirement planning. Regularly check your:
- Annual CPP contributions
- Benefit estimates
- Any changes to CPP rules
Every contribution counts toward your future income. Strategic timing and consistent contributions are key to getting the most from CPP.
The CPP increase to $1,364 a month in 2025 is good news, but only those with maximum contributions and the right timing will see the full amount. With living costs climbing, every dollar matters.
FAQs
What is the max CPP in 2025?
$1,364 per month at age 65.
How much did CPP increase in 2025?
It rose by $58 per month from 2024.
How to get the full CPP amount?
Make max contributions for 39 years and start at 65.
What is the YMPE for 2025?
$69,700.
Can delaying CPP increase payments?
Yes, up to 42% more if you start at age 70.
