The Canada Pension Plan (CPP) is a government program designed to assist low-income seniors in Canada as they approach retirement. Senior citizens, typically between the ages of 60 and 62, can begin applying for CPP benefits through the Canada Revenue Agency (CRA). However, the age at which one chooses to start receiving CPP benefits can significantly impact the amount they receive.
In this article, we compare the benefits of starting CPP at age 60 versus age 65 in 2025. Those who start receiving their CPP benefits at age 60 may face a reduction in their monthly payments, while waiting until age 65 typically results in higher benefits.
How CPP Benefits Work: Key Factors to Consider
The amount you receive from CPP is determined by several factors, the most important of which is your age when you begin receiving benefits, as well as the contributions you made throughout your working years. Applicants are eligible to stop contributing to the CPP once they turn 62, but they must meet the CPP Benefits Eligibility Criteria in 2025.
2024 CPP Payment Increase
In December 2024, CPP payments will increase by 1.8% due to a cost-of-living adjustment (COLA) based on the September 2024 inflation rate. This increase can make a difference in the amount recipients receive, and applicants can check their eligibility using the CRA’s online calculator.
CPP at 60 vs. 65 in 2025: Which Age is Best?
Whether you start taking CPP benefits at age 60 or wait until age 65 depends on your personal financial situation. Here’s a summary of the differences:
- Starting at Age 60: While you can begin receiving payments as early as 60, this comes with a permanent reduction in your monthly benefits. The longer you wait, the higher your monthly payments will be.
- Starting at Age 65: If you delay taking your CPP until age 65, your payments will be higher. This is because the CPP is designed to reward those who wait to start receiving benefits.
If you continue working after age 60 and collect CPP, your benefits may be reduced further. Therefore, it is recommended to consult with a financial expert to determine the best course of action for maximizing your CPP benefits.
CPP Benefits Eligibility Criteria for 2025
To qualify for CPP benefits in 2025, applicants must meet the following criteria:
- Residency: You must be a legal citizen or permanent resident of Canada.
- Duration of Residency: Applicants must have lived in Canada for at least 10 years after turning 18.
- Contributions: You must have made contributions to the CPP during your working years. Even a single contribution counts, but longer contribution periods result in higher benefits.
- Income Limits: Applicants must meet income eligibility requirements and have paid taxes throughout their working years.
How to Claim Maximum CPP Benefits in 2025
To claim the maximum CPP benefits in 2025:
- Meet Eligibility Criteria: Ensure you meet all the necessary requirements outlined above.
- Create an MSCA Account: Visit the CRA website to create a My Service Canada Account (MSCA), which will allow you to track your application status and benefit amount.
- Submit Your Application: Fill out the online form, attaching the necessary documents. After submission, wait for the CRA to verify your information and start processing your payments.
2025 CPP Payment Schedule
Here are the payment dates for CPP benefits in 2025:
| Month | Payment Date |
|---|---|
| January 2025 | 29th |
| February 2025 | 26th |
| March 2025 | 27th |
| April 2025 | 28th |
| May 2025 | 28th |
| June 2025 | 26th |
| July 2025 | 29th |
| August 2025 | 27th |
| September 2025 | 25th |
| October 2025 | 26th |
| November 2025 | 29th |
| December 2025 | 22nd |
Disclaimer: CPP at 60 vs. 65 in 2025
This article outlines the main differences in receiving CPP benefits at ages 60 and 65. However, all details should be confirmed with the CRA or through their official portal. It’s always advisable to consult with a financial expert to ensure you are making the most informed decision about your CPP benefits.
FAQs on CPP at 60 vs. 65 in 2025
Q1: Is it necessary for a 65-year-old to keep contributing to CPP while retired?
Once you reach age 65, you are no longer required to contribute to the CPP, although you can continue receiving pension payments if you are still working.
Q2: How many contributions are required to qualify for CPP benefits in 2025?
While even a single contribution counts, most applicants need to have contributed for several years during their working life to receive the maximum CPP benefits. The more years you contribute, the higher your monthly payments.
Q3: Can a senior citizen receive an increased amount of CPP benefits?
To receive a higher amount, it’s recommended to wait until you are fully retired before claiming benefits, as delaying your CPP claim increases your monthly payments. Financial advisors can help you plan the best strategy.
