Recent changes and your retirement plans - Canada Pension Plan

February 2012

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Because Canadians are now living longer, we recognize that you need a retirement plan that fits your changing lifestyle. The Canada Pension Plan (CPP) is changing to better reflect your new reality. Here are some key questions to consider as you start thinking about retirement.

Do you plan to take your CPP retirement pension in the next few years?

You can receive your full CPP retirement pension at age 65. If you take your pension after age 65, you will increase your pension by up to 42% (at age 70), beginning in 2013. However, if you take your CPP pension early, that is, any time after age 60 but before 65, your pension will be reduced based on your age at the time your benefit begins. This reduction will gradually change over the next few years to a 36% reduction (at age 60) in 2016.

Will you continue working while receiving your CPP retirement pension?

Starting in 2012, if you work while receiving your CPP retirement pension, you and your employer will be able to make CPP contributions that will count towards the new Post-Retirement Benefit (PRB). The PRB is a fully-indexed lifetime benefit that increases your retirement income. These contributions are mandatory for workers under age 65 and voluntary for those age 65 to 70.

Key actions you can start today

  1. Visit the Changes to the Canada Pension Plan (CPP) section of our Web site for quick access to:
    • key information and Web videos on the changes to the CPP;
    • the online Canadian Retirement Income Calculator, which will help you estimate your retirement income; and
    • estimates of the amount you can expect to receive from the Post-Retirement Benefit, as well as your options for contributing to this benefit.
  2. Register for My Service Canada Account to view updates to your CPP Statement of Contributions and other related information. It is convenient and secure! For step-by-step instructions on how to register, go to My Service Canada Account.
  3. Seek financial advice from a trusted source to determine what the best option is for you and your retirement.
  4. If you still have questions about the changes to the CPP, call Service Canada at 1-800-277-9914 (TTY: 1-800-255-4786).