CPP Payment Dates (2022): How Much Will You Get?

November 15, 2021
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The Canada Pension Plan (CPP) is the most popular retirement plan in Canada. It’s available to both public and private sector workers, as well as self-employed individuals who pay into the plan after reaching pensionable earnings.

CPP payments are made every month via direct deposit to your bank account or cheque. To learn about the specific CPP payment dates, how much you can expect to receive, whether you’re eligible for any additional benefits, and more, read on below.

The CPP is one of the three main sources of retirement income in Canada for seniors. CPP retirement benefits are determined by how much an individual contributes into the CPP and their length of employment in Canada, but it also takes into account other factors such as wars fought in service of Canada, maximum CPP earnings, education, and more.

The CPP-style program in Quebec is referred to as the Quebec Pension Plan (QPP). Most of this article is accurate for both the CPP and the QPP, though for the sake of brevity, I’ll only mention CPP.

2022 CPP Payment Dates

The schedule for CPP payments varies from month to month, but they usually fall on the third-to-last business day of each month. CPP payments also coincide with Old Age Security (OAS) pension payments, so if you’re receiving both, you’ll get them on the same day.

Here are the CPP payment dates for both 2021 and 2022:

CPP Payment Dates 2021CPP Payment Dates 2022
January 27, 2021January 27, 2022
February 24, 2021February 24, 2022
March 29, 2021March 29, 2022
April 28, 2021April 27, 2022
May 27, 2021May 27, 2022
June 28, 2021June 28, 2022
July 28, 2021July 27, 2022
August 27, 2021August 29, 2022
September 28, 2021September 27, 2022
October 27, 2021October 27, 2022
November 26, 2021November 28, 2022
December 22, 2021December 21, 2022

The CPP retirement pension, disability payments, children’s benefits, and survivor’s benefits are all part of the CPP payout. OAS benefits are paid on the same dates as well and include the OAS pension, Guaranteed Income Supplement (GIS), Allowance, and Allowance for the Survivor.

December payouts are almost always received before December 25, ensuring CPP recipients have the funds to purchase Christmas gifts for their loved ones.

How Much CPP Will You Receive?

The amount of CPP you receive is based on your contributions to the plan. In essence, the more you contribute (and the longer you contribute), the greater CPP benefits you will be entitled to in retirement.

To be eligible for CPP, you must be at least 60 years old and have made at least one payment to the program. Most individuals will not meet the maximum CPP threshold because they did not make the maximum payments to the plan for at least 39 years.

However, that doesn’t mean you CPP payments will be low. If you were contributing to CPP for 10 or 20 years, you’ll still receive a sizable amount back.

Here’s a table showing the CPP’s projected average and highest annual benefits for 2021 (taken from here):

BenefitAverage amount for new beneficiaries (June 2021)Maximum payment amount (2021)
Retirement pension (at age 65)$714.21$1,203.75
Post-retirement benefit (at age 65)$16.04$30.09
Disability benefit$1,038.77$1,413.66
Post-retirement disability benefit$510.85$510.85
Survivor’s pension – younger than 65$415.18$650.72
Survivor’s pension – 65 and older$308.60$722.25
Children of disabled CPP contributors$257.58$257.58
Children of deceased CPP contributors$257.58$257.58
Death benefit (one-time payment)$2,495.55$2,500.00
Combined benefits
Combined survivor’s and retirement pension (at age 65)$871.61$1,203.75
Combined survivor’s pension and disability benefit$1,136.85$1,413.66

As the table shows, the average CPP retirement pension benefit as of June 2021 is $714.21/month, while the maximum CPP retirement pension benefit is $1,203.75/month.

Calculating Maximum CPP

To receive the maximum amount of CPP, you must have contributed the maximum amount to the CPP for 39 years before reaching age 65. The maximum amount depends on the Yearly Maximum Pensionable Earnings (YMPE), which is adjusted every year.

Let’s break down the math.

First, the YMPE is $61,600 in 2021, which means you don’t make additional CPP contributions beyond $61,600 in income.

Second, the employee contribution rate is 5.45%, which is how much of your earnings you need to allocate to CPP.

Third, the first $3,500 of your earnings is exempt from CPP, so you don’t pay anything on that.

With those three things in mind, you’ll pay 5.45% on $58,100 in earnings ($61,600 minus $3,500), making the maximum CPP contribution for 2021 equal $3,166.45.

It’s not necessary to know exactly how much you paid to CPP each year to get an approximate understanding of what you’ll get back. Instead, just check the historical YMPE numbers here and estimate how much you earned in each of those years.

For example, if you earned about 50% of the YMPE each year, you can expect to get about 50% of the maximum CPP in retirement; if you earned about 90% of the YMPE each year, you can expect to get about 90% back.

It’s also worth noting that you may be eligible for a larger benefit if you qualify for additional benefits due to raising children, low-income years in school, and any disabilities.

Is CPP Taxable?

Yes, CPP payments are considered taxable income. Your overall taxable income level is determined by the tax rate. The following income tax rate applies at the federal level:

  • Less than $49,020: 15%
  • $49,020 – $98,040: 20.5%
  • $98,040 – $151,978: 29%
  • $151,978 – $216,511: 29%
  • Over $216,511: 33%

You’ll pay provincial taxes as well, which vary depending on the province you reside in.

Couples may choose to combine their CPP benefits to save on taxes. They can apply to do so from within their Service Canada account.

The amount of CPP you receive is not income-dependent like the OAS, and there is no CPP clawback if your earnings exceed the OAS maximum income threshold ($129,075 for 2021).

CPP Benefits Increases In 2021

Starting in 2019, changes were made to the CPP. While the original goal of the CPP was to substitute one-quarter of pre-retirement income, the long-term plan is for it to replace one-third of your average lifetime earnings. The full implications of these adjustments are not expected to be seen until 2065, but it’s encouraging to see that the government of Canada is upping the ante and taking better care of its elder citizens.

CPP Payment Rates Are Increasing

Every year from 2018 until 2023, CPP rates will slowly increase both on the employer and on the employee side. Here’s a table showing the exact increases each year:

YearContribution Rate (Employers & Employees)Combined Contribution Rate
20184.95%9.90%
20195.10%10.20%
20205.25%10.50%
20215.45%10.90%
20225.70%11.40%
2023+5.95%11.90%

In 2018, both employers and employees were paying 5.25% (10.50% collectively), but by 2023 they will be paying 5.95% apiece (11.90% collectively). In 2022, that figure is 5.70% each (11.40% collectively).

The bottom line is that seniors will receive higher CPP payouts in the future than they do today, though the full impact of these changes won’t be felt for decades.

Additional CPP Retirement Pension Benefits

On top of their retirement pension, CPP beneficiaries (and their spouses and dependents) may also qualify for a number of other benefits. Here’s a list of those benefits and how to know if you qualify.

1. Post-Retirement Pension

You can continue to work while receiving CPP and making contributions. These extra payments are paid out as a post-retirement benefit, increasing your overall pension. After you reach the age of 70, though, you are no longer allowed to contribute to CPP.

2. CPP Disability Pension

CPP disability pension and post-retirement disability benefit are available to CPP contributors with a “severe and prolonged” impairment. Dependent children of these individuals may also receive a children’s benefit.

3. CPP Survivor’s Pension

The legal spouse or common-law partner of a deceased CPP contributor is eligible for a CPP survivor’s pension. The total CPP benefit they can receive—including their retirement pension, disability pension, and survivor’s pension—cannot exceed the maximum CPP monthly payments, which was $1,203.75 in 2021.

4. CPP Children’s Benefit

Dependent children of a deceased or disabled CPP pensioner are eligible for monthly benefits. The child must be under the age of 18 or 25 if in full-time school. In 2021, the maximum monthly children’s benefit is $257.58.

5. CPP Death Benefit

A surviving spouse, dependent children, and grandchild of a deceased CPP contributor may each receive a lump-sum benefit of $2,500. You must complete Form ISP1200 and submit it to Service Canada in order to apply.

What Happens To Canada Pension Plan ​Benefits After Death

If a CPP retiree dies, their spouse may be eligible for extra payments, including the survivor’s benefit and children under the age of 25 could receive a children’s allowance. The surviving spouse receives a pension that is dependent on how much the deceased participant put into the plan as well as the age of the current spouse.

If the spouse is under 65 years old, they get 37.5% of the deceased contributor’s retirement pension plus a fixed rate amount. If the spouse is 65 or older, he or she receives 60% of the retirement pension of the deceased contributor. The living spouse or common-law partner can only receive a total combined benefit that does not exceed the maximum pension, which was $1,203.75 in 2021.

If you were already collecting the full CPP, your survivor’s benefit disappears. A death benefit of $2,500 may be paid to the deceased contributor’s estate to help with funeral costs.

If a CPP pensioner passes away before they can apply for the CPP, the following rules apply:

  • The income from their pension may be extended for a period of up to 12 months if they have died before reaching 70 years old. This is only possible if they were over 70 and submitted an application within 12 months of dying.
  • The death benefit may be paid out to the winner’s estate, spouse, or next of kin.
  • Even after their spouse and children have been granted a higher benefit, they can still apply for the survivor’s pension and child benefits.

What Happens To CPP If You Move Out Of Canada?

CPP benefits are not subject to the 20-year residency requirements that apply to Old Age Security. You may receive your CPP pension, no matter what country you live in. Depending on where you live, your CPP payments will be made either in your local currency (eg. US dollars or Euros) or in Canadian dollars.

A 25% withholding tax rate is applied to your benefits if you are deemed to be a non-resident of Canada for tax purposes by the CRA.

If you live in a nation that has a tax treaty with Canada (and most developed countries do), this 25% withholding tax may be reduced or waived completely.

What Is The Best Age To Collect CPP?

There’s no perfect “strategy” to maximizing your CPP benefits, though here are a few factors to consider:

  • How much are you earning now, and how much do you expect to earn in 5-10 years?
  • Do you need the benefits now, or can you wait?
  • Will OAS claw back any of your benefits (such as the Guaranteed Income Supplement)?
  • How much longer do you (realistically) expect to live?

The longer you wait to collect your pension, the more you will receive. However, waiting beyond age 60 may not always be the best option. I suggest that you speak with a financial planner about your unique financial situation to make a plan for the best time to start receiving CPP.

Should I collect CPP while still working?

The general age for CPP compensation is 65. You may begin collecting CPP at 60, if you wish. In this case, your monthly payments are decreased by 0.60%, for a total deduction of 7.2% per year. If you delay CPP until age 70, you’ll receive a bonus of 0.70% per month (total bonus of 8.4% per year).

If you started contributing to the CPP later in life or simply wish to boost your retirement pay, working and contributing to the CPP after age 65 may be beneficial. However, no additional contributions are required once you reach age 65.

CPP Payment Dates FAQs

What is the maximum CPP for 2021?

The maximum CPP payment is $1,203.75/month for 2021, which is a yearly pension of $14,445. The 2020 maximum monthly CPP was $1,175.83/month.

Will CPP benefits increase in 2022?

CPP benefits are adjusted each January to account for inflation (i.e., the Consumer Price Index). For example, in 2021, the amount was increased by 1.0%. This number may be higher for 2022, given the high rate of inflation we experienced in 2021.

Does CPP cover funeral expenses?

If the pensioner made qualifying contributions, their estate/spouse/next-of-kin may be eligible for a $2,500 death benefit.

Can I collect my deceased husband’s CPP?

A surviving spouse is eligible for a survivor’s pension. The payment you receive will be determined by the amount that was put into the plan, your age, and any other pension benefits you currently receive. As a reminder, the total CPP benefit one person receives cannot exceed the maximum CPP retirement pension, which was $1,203.75 in 2021.

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