Canada’s public pension system—known as the Canada Pension Plan (CPP)—just got a boost. Starting in 2025, some eligible retirees may receive up to $1560 per month, thanks to years of planned enhancements aimed at strengthening retirement income.
But there’s a catch: not everyone qualifies for the full amount. Whether you’re nearing retirement or already collecting CPP, this guide covers everything you need to know about the new CPP increase, payment dates, eligibility, and how to apply.
Overview
Here’s a quick breakdown of the key facts:
| Feature | Details |
|---|---|
| Max Monthly Payment (2025) | $1560 |
| Eligibility | Ages 60–70 with full contribution history |
| Payment Schedule | Paid on the third-last business day of each month |
| Application Method | Online or by mail via Service Canada |
| Related Benefits | CPP Enhancement, Post-Retirement Benefit |
Canada Pension Plan
The CPP is a government-run pension plan for Canadian workers. If you’ve worked in Canada and contributed to the CPP through payroll deductions, you’re building retirement benefits. The amount you receive depends on how much and how long you’ve contributed, as well as when you choose to start your payments.
In 2025, the maximum monthly payment is increasing to $1560, but only a small portion of retirees will actually receive this full amount.
Why the CPP Is Increasing
The CPP enhancement began in 2019 to ensure future retirees would have better income security. It works in three ways:
- Higher Contributions: Workers and employers now contribute a little more.
- Higher Pensionable Earnings Ceiling: You can now contribute more based on higher annual earnings (up to $68,500 in 2025).
- Post-Retirement Benefits: If you keep working past age 65, your benefits may increase—even if you’re already receiving CPP.
These enhancements are gradually being phased in and are aimed at helping future retirees, especially those who contribute at higher levels for longer periods.
CPP Payment Dates
If you’re eligible, your CPP payment will arrive on the third-last business day of each month. Here’s when to expect payments in 2025:
| Month | Payment Date |
|---|---|
| January | January 29 |
| February | February 26 |
| March | March 27 |
| April | April 28 |
| May | May 28 |
| June | June 26 |
| July | July 29 |
| August | August 26 |
| September | September 29 |
| October | October 29 |
| November | November 26 |
| December | December 29 |
These dates are subject to slight change depending on holidays, so it’s best to keep an eye on your bank account around that time.
Who Is Eligible?
Not everyone gets the maximum. To be eligible for the full $1560 monthly payment, here’s what you need:
1. Full Contribution History
You need to have contributed the maximum amount every year during your working life (usually around 39+ years).
2. Start at Age 65
The full benefit is based on starting CPP at age 65. If you begin earlier, payments are reduced by 0.6% per month (or 7.2% per year). If you delay until age 70, you get a bonus of 0.7% per month (8.4% per year).
Example:
- At 65 with full contributions: up to $1560/month
- At 60: about $1095/month (30% reduction)
- At 70: about $1924/month (23% increase)
3. Years of Maximum Contributions
If you had some years of low income, or didn’t contribute to CPP during certain years, your average contributions will be lower—so your benefit will be too.
How to Apply
You won’t automatically receive the increased amount unless you qualify. You still need to apply for CPP benefits.
Step-by-Step Guide to Apply:
Step 1: Choose how you want to apply
- Online: Log in to My Service Canada Account
- By Mail: Download and print the CPP application form (ISP-1000)
Step 2: Fill out your information
- Provide SIN, banking info (for direct deposit), and retirement date.
Step 3: Submit and wait
- Processing can take 1–6 months, so apply early (up to 12 months before you want benefits to start).
Step 4: Receive monthly payments
- Once approved, payments begin the month you selected (or the earliest date you qualify).
Tips to Maximize Your CPP Benefit
- Delay if you can: Waiting until 70 gives you the highest payout.
- Keep working after retirement: Your contributions will boost your payments.
- Check your Statement of Contributions: Log into My Service Canada to review your CPP record.
Real-Life Example
Let’s say Brenda is 65 in 2025. She worked for 42 years and contributed the maximum to CPP. She waits until 65 to apply and qualifies for the full $1560/month. Her decision to delay instead of starting at 60 gives her over $5,500 more per year than she would have received otherwise.
FAQs
Who gets the full $1560 CPP payment?
Those who contributed the max for 39+ years and start at 65.
When are CPP payments sent in 2025?
Third-last business day of each month, like August 26.
Can I apply for CPP online?
Yes, through your My Service Canada Account.
What happens if I start CPP at 60?
Your benefit will be reduced by up to 36%.
Is CPP separate from OAS?
Yes, OAS is a separate benefit based on residency, not work.
