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How Much Will I Get From CPP?

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CPP or Canada Pension Plan is one of the primary sources of retirement benefit for old-aged seniors. It is known as the Quebec Pension Plan in Quebec. The CPP benefit is monthly transferred to the bank account directly through check or deposit on these dates.

In layman’s terms, the benefit amount varies with each applicant, calculated through the CPP contribution while employed. The more you pay into the program, the more you will receive.

How much could you receive CPP?

The final CPP retirement amount factors in the following:

  •         The age the applicant begins to save for a pension
  •         The duration and amount of the CPP contribution
  •         The mean earning for the applicant’s lifetime

As of the current year, 2022, the highest amount the most recent CPP applicant will receive is $1,253.59 at the age of 65. Furthermore, the average amount for new retirement benefits at 65 is $779.32. The monthly calculation is based on the age of 65 as well. However, each amount varies and is dependent on the factors mentioned above and your circumstances.

Other factors that can affect the CPP amount

The factors will be automatically considered to calculate CPP pension planning, assuming the provided information in the original application is correct.

Are you working and receiving CPP retirement benefits simultaneously?

Assuming you are less than 70 and intend to continue contributions. In that case, you are a successful applicant for the CPP post-retirement planning.

Each time you make a payment for the CPP, it will increase your retirement income and benefit. CPP will pay you more the following year in perpetuity for the applicant’s life.

You can choose to stop contributing at 65. However, the contributions will automatically stop when you reach 70. Relevant agencies will contact you for more information.

CPP at 65

Assuming you are working after turning 65 and have not received a CPP pension, the post-65 earnings will substitute the prior unemployment and low-income periods. As a result, your pension increases. However, the contributions will stop when you celebrate your 70th birthday.

At most, 8 years of earnings are excluded with periods related to low earnings to conclude the CPP retirement pension plan figure. Such an act will increase your pension amount. Therefore, it is nothing to be ashamed of if you have had no earnings periods or low income.

No income or minimum salary

CPP enhancement is calculated using the most successful 40 years of income earned. However, it is employed if you were consistently working and making contributions to the CPP after 1st January 2019.

Raising children

The CPP has a specific proviso that increases its benefits if the applicant raises children less than 7 years of age. However, the final amount is dependent on your income at the time. Consult with a professional to understand how the provisions work for your benefit and complications.


There may be a time when you were receiving CPP disability payments. These are not part of the CPP payment but will increase your retirement pension. A credit score is allotted before the disability period while collecting CPP pension benefits. The credit value is determined using the income period of 6 years before the disability. It is calculated based on 2019 earnings and after.

Sharing your pension

As per Canadian laws, you can share a pension with your spouse and domestic partner. As a result, the pension distribution will reduce the taxes since the taxable income has decreased.


CPP contributions are equally distributed between you and your ex-spouse if you choose to end the marriage or become separated. The division is based on credit splitting.

Contact Merrick Financial today.

We are fee-only financial planning services that provide investment insight after consulting with its clients. Our services are researched-based, with the common aim of financial and economic liberation. Visit https://www.merrickfinancial.ca/ to schedule a meeting online or browse our services portfolio.

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