Calculation of your Canada Pension Plan (CPP) benefit
When should I start taking my CPP, and how much will I receive?
The amount of CPP that you receive monthly will change depending on when you choose to start receiving your benefit. It will be reduced for each month that you take it before 65 and increased for each month that you start taking it after 65.
In 2016, if you start receiving your retirement pension at age 60, your pension will be 36.0% less than if you had taken it at 65; if you start receiving it at age 70, it will be 42% more.
You can get estimates of your CPP retirement benefit at ages 60, 65, and 70 from the Service Canada website (www.servicecanada.gc.ca/eng/online.mysca.shtml). (You must register for an account and log in.) The estimates can be accurate if you'll be eligible for your CPP retirement pension in the next few years. Otherwise, they can be misleading, particularly in these circumstances:
- If your future earnings will be significantly higher or lower than your previous average lifetime earnings. For example, if you are 55 and no longer working and contributing to the CPP, your benefit at 60 will likely be lower than the Service Canada estimates show.
- If you stayed at home to raise children. The Service Canada estimates do not account for the CPP child-rearing provision.
- If you are currently receiving a CPP Survivor's pension. There is a complex formula that determines how the Survivor's Pension and your retirement pension are "combined."
DR Pensions Consulting can take this additional information into account and give you a much more accurate estimate.
We can provide an accurate estimate of your benefit at any age from 60 to 70
- Estimates for individual starting years are $50 each (for example, "what will my benefit be if I start taking it at 60"?).
- A report with estimates for the six years from 60 to 65 inclusive is $120.
- A report with estimates for the 11 years from 60 to 70 inclusive is $150.
For the six- and 11-year estimates, we create a spreadsheet that will show you a picture of your CPP options, including estimated monthly benefit amounts, cumulative totals, and breakeven points.
The following sample spreadsheet shows you the kind of information you will receive. It shows estimates for a (fictitious) client who has asked for estimates for starting ages of 60 to 65 inclusive. The highlighted areas show which option provides the highest cumulative amount at that age (the breakeven point). The monthly amounts and totals are for this particular client; everyone's situation is different.
Note: All of the figures below are in current year dollars (not adjusted for inflation). The shading indicates the highest cumulative payout at the age in the column at left.
| Starting Age | Age 60 | Age 61 | Age 62 | Age 63 | Age 64 | Age 65 |
|---|---|---|---|---|---|---|
| Monthly amount | 547.38 | 584.67 | 623.73 | 668.83 | 712.33 | 754.28 |
| Total: Age 61 |
6,568.56 | n/a | n/a | n/a | n/a | n/a |
| Age 62 | 13,137.12 | 7,016.04 | n/a | n/a | n/a | n/a |
| Age 63 | 19,705.68 | 14,032.08 | 7,484.76 | n/a | n/a | n/a |
| Age 64 | 26,274.24 | 21,048.12 | 14,969.52 | 8,025.96 | n/a | n/a |
| Age 65 | 32,842.80 | 28,064.16 | 22,454.28 | 16,051.92 | 8,547.96 | n/a |
| Age 66 | 39,411.36 | 35,080.20 | 29,939.04 | 24,077.88 | 17,095.92 | 9,051.36 |
| Age 67 | 45,979.92 | 42,096.24 | 37,423.80 | 32,103.84 | 25,643.88 | 18,102.72 |
| Age 68 | 52,548.48 | 49,112.28 | 44,908.56 | 40,129.80 | 34,191.84 | 27,154.08 |
| Age 69 | 59,117.04 | 56,128.32 | 52,393.32 | 48,155.76 | 42,739.80 | 36,205.44 |
| Age 70 | 65,685.60 | 63,144.36 | 59,878.08 | 56,181.72 | 51,287.76 | 45,256.80 |
| Age 71 | 72,254.16 | 70,160.40 | 67,362.84 | 64,207.68 | 59,835.72 | 54,308.16 |
| Age 72 | 78,822.72 | 77,176.44 | 74,847.60 | 72,233.64 | 68,383.68 | 63,359.52 |
| Age 73 | 85,391.28 | 84,192.48 | 82,332.36 | 80,259.60 | 76,931.64 | 72,410.88 |
| Age 74 | 91,959.84 | 91,208.52 | 89,817.12 | 88,285.56 | 85,479.60 | 81,462.24 |
| Age 75 | 98,528.40 | 98,224.56 | 97,301.88 | 96,311.52 | 94,027.56 | 90,513.60 |
| Age 76 | 105,096.96 | 105,240.60 | 104,786.64 | 104,337.48 | 102,575.52 | 99,564.96 |
| Age 77 | 111,665.52 | 112,256.64 | 112,271.40 | 112,363.44 | 111,123.48 | 108,616.32 |
| Age 78 | 118,234.08 | 119,272.68 | 119,756.16 | 120,389.40 | 119,671.44 | 117,667.68 |
| Age 79 | 124,802.64 | 126,288.72 | 127,240.92 | 128,415.36 | 128,219.40 | 126,719.04 |
| Age 80 | 131,371.20 | 133,304.76 | 134,725.68 | 136,441.32 | 136,767.36 | 135,770.40 |
| Age 81 | 137,939.76 | 140,320.80 | 142,210.44 | 144,467.28 | 145,315.32 | 144,821.76 |
| Age 82 | 144,508.32 | 147,336.84 | 149,695.20 | 152,493.24 | 153,863.28 | 153,873.12 |
| Age 83 | 151,076.88 | 154,352.88 | 157,179.96 | 160,519.20 | 162,411.24 | 162,924.48 |
| Age 84 | 157,645.44 | 161,368.92 | 164,664.72 | 168,545.16 | 170,959.20 | 171,975.84 |
| Age 85 | 164,214.00 | 168,384.96 | 172,149.48 | 176,571.12 | 179,507.16 | 181,027.20 |
| Age 86 | 170,782.56 | 175,401.00 | 179,634.24 | 184,597.08 | 188,055.12 | 190,078.56 |
| Age 87 | 177,351.12 | 182,417.04 | 187,119.00 | 192,623.04 | 196,603.08 | 199,129.92 |
| Age 88 | 183,919.68 | 189,433.08 | 194,603.76 | 200,649.00 | 205,151.04 | 208,181.28 |
| Age 89 | 190,488.24 | 196,449.12 | 202,088.52 | 208,674.96 | 213,699.00 | 217,232.64 |
| Age 90 | 197,056.80 | 203,465.16 | 209,573.28 | 216,700.92 | 222,246.96 | 226,284.00 |
| Age 91 | 203,625.36 | 210,481.20 | 217,058.04 | 224,726.88 | 230,794.92 | 235,335.36 |
| Age 92 | 210,193.92 | 217,497.24 | 224,542.80 | 232,752.84 | 239,342.88 | 244,386.72 |
| Age 93 | 216,762.48 | 224,513.28 | 232,027.56 | 240,778.80 | 247,890.84 | 253,438.08 |
| Age 94 | 223,331.04 | 231,529.32 | 239,512.32 | 248,804.76 | 256,438.80 | 262,489.44 |
| Age 95 | 229,899.60 | 238,545.36 | 246,997.08 | 256,830.72 | 264,986.76 | 271,540.80 |
| Age 96 | 236,468.16 | 245,561.40 | 254,481.84 | 264,856.68 | 273,534.72 | 280,592.16 |
| Age 97 | 243,036.72 | 252,577.44 | 261,966.60 | 272,882.64 | 282,082.68 | 289,643.52 |
| Age 98 | 249,605.28 | 259,593.48 | 269,451.36 | 280,908.60 | 290,630.64 | 298,694.88 |
| Age 99 | 256,173.84 | 266,609.52 | 276,936.12 | 288,934.56 | 299,178.60 | 307,746.24 |
| Age 100 | 262,742.40 | 273,625.56 | 284,420.88 | 296,960.52 | 307,726.56 | 316,797.60 |
If you are interested in receiving an accurate estimate of your CPP benefit, please contact us at drpensions@shaw.ca.