When should I start taking CPP in Canada?

The standard CPP start date is age 65. Starting earlier (as young as 60) reduces your monthly amount by 0.6% for each month before 65 — a maximum 36% reduction at age 60. Deferring past 65 increases your amount by 0.7% per month — a maximum 42% increase if you wait until 70. The break-even for taking CPP at 60 vs 65 is approximately age 74; the break-even for taking CPP at 65 vs 70 is approximately age 82–83. If you expect to live past your break-even, waiting pays more over a lifetime. If your health is poor, taking it early may be better.

What is the maximum CPP payment in 2026?

The maximum monthly CPP retirement pension in 2026 (at age 65) is approximately $1,433. The average CPP payment for new beneficiaries is closer to $808/month — most people don't receive the maximum because they did not contribute at maximum levels throughout their career. Your actual CPP amount is based on your contribution history and the number of years at maximum contributions. You can view your projected CPP statement on My Service Canada Account.

What is the break-even age for CPP at 60 vs 65?

If you collect CPP at 60 (with the 36% reduction), you receive lower monthly payments for roughly 5 years before someone who waited until 65 starts collecting. The break-even point — where cumulative lifetime payments from age 60 vs age 65 are equal — is approximately age 74. If you live past 74, you receive more total money by waiting until 65. If you die before 74, you received more by starting at 60. Health status and family longevity history are key inputs to this decision.

What is the break-even age for CPP at 65 vs 70?

Waiting from 65 to 70 increases CPP by 42%, but you forgo 5 years of payments. The break-even for 65 vs 70 is approximately age 82–83. If you expect to live into your mid-80s or beyond (which is statistically likely — a 65-year-old Canadian man has a 50% chance of reaching 85, and a woman has more than 50% chance of reaching 87), deferring to 70 can add significant total lifetime income. The deferred CPP is also indexed to inflation, so the advantage compounds over time.

Does early CPP affect OAS?

No. CPP and OAS are separate programs. Taking CPP early at 60 does not affect your OAS eligibility or OAS start age. OAS has its own deferral options (start between 65–70). However, CPP income counts toward your total income for the OAS clawback (recovery tax) threshold — so high earners deferring CPP to reduce income in their early 70s may lower their OAS clawback exposure. The two programs should be planned together but operate independently.

What happens to my CPP if I die before collecting?

If you die before collecting CPP, your spouse or common-law partner may receive the CPP Survivor's Pension — a portion of your CPP based on the survivor's own CPP entitlement. Children under 25 in full-time school may also receive a disabled contributor's child benefit. There is also a one-time CPP Death Benefit of $2,500 payable to the estate. If you took CPP early and die shortly after, the estate keeps the amounts already paid. If you deferred and die before collecting, survivors receive what they are entitled to under CPP survivor rules — not the full accumulated deferred amount.

When to Take CPP: 60 vs 65 vs 70 Break-Even Guide Canada

Short Answer

Start CPP at 60 if you need income or have health concerns. Start at 65 if you are in average health with moderate retirement income. Defer to 70 if you are healthy, have other income sources, and want maximum indexed lifetime income. The 65-vs-70 break-even is age 82 — a threshold most Canadian retirees now reach.

CPP Adjustment Factors

Start age	Monthly adjustment	Effect on $1,000/month at 65	Notes
60	−0.6%/month × 60 months = −36%	$640/month	Maximum reduction
61	−0.6%/month × 48 months = −28.8%	$712/month
62	−0.6%/month × 36 months = −21.6%	$784/month
63	−0.6%/month × 24 months = −12%	$880/month
64	−0.6%/month × 12 months = −7.2%	$928/month
65	0%	$1,000/month	Standard start
66	+0.7%/month × 12 months = +8.4%	$1,084/month
67	+0.7%/month × 24 months = +16.8%	$1,168/month
68	+0.7%/month × 36 months = +25.2%	$1,252/month
69	+0.7%/month × 48 months = +33.6%	$1,336/month
70	+0.7%/month × 60 months = +42%	$1,420/month	Maximum deferral

Break-Even Analysis: Age 60 vs 65 vs 70

Using $1,000/month at 65 as baseline.

Comparison	Age 60 cumulative	Age 65 cumulative	Age 70 cumulative	Break-even
Age 60 vs 65	Starts at 60 with $640/month	Starts at 65 with $1,000/month	—	~Age 74
Age 65 vs 70	—	Starts at 65 with $1,000/month	Starts at 70 with $1,420/month	~Age 82–83

Age	Cumulative CPP (starting at 60)	Cumulative CPP (starting at 65)	Cumulative CPP (starting at 70)
65	$640 × 60 = $38,400	$0	$0
70	$38,400 + $640 × 60 = $76,800	$1,000 × 60 = $60,000	$0
74	$76,800 + $640 × 48 = $107,520	$60,000 + $1,000 × 108 = $108,000	$0
75	$114,960	$120,000	$1,420 × 60 = $85,200
80	$153,120	$180,000	$85,200 + $1,420 × 60 = $170,400
83	$176,160	$216,000	$170,400 + $1,420 × 36 = $221,520
85	$191,520	$240,000	$251,760
90	$230,400	$300,000	$336,360

Simplified — does not account for inflation indexing, tax effects, or investment returns on invested CPP.

What the Numbers Look Like at Maximum CPP (2026)

Start age	Monthly amount	Annual amount	Lifetime at age 85
Age 60	$918	$11,016	~$275,000
Age 65	$1,433	$17,196	~$344,000
Age 70	$2,035	$24,420	~$367,000

Assumes 2026 maximum CPP of $1,433/month at 65, no inflation adjustment, survival to 85.

Factors That Favour Taking CPP Early (60–64)

Your situation	Why early CPP may make sense
Poor health or reduced life expectancy	Break-even at 74 — shorter life favours early collection
Low income in early retirement	CPP income fills income gap without drawing down RRSP
No other pension or income	Guaranteed floor income useful immediately
Debts in early retirement	Use CPP to pay down debt rather than defer

Factors That Favour Deferring CPP (66–70)

Your situation	Why deferring CPP may make sense
Good health / long-lived family	Live past 82 = more lifetime income from deferral
Other sources of income at 65	RRSP, rental, part-time work covers needs — no rush
High RRSP balance	Defer CPP, draw RRSP first to reduce RRSP at 71 (lower mandatory RRIF minimums)
OAS clawback concern	Additional CPP income at 65 adding to income — deferring CPP reduces income in OAS clawback years
Wants inflation-protected income	Deferred CPP is indexed — $1,420/month grows each year with CPI

CPP and Survivor Benefits

Scenario	What the survivor receives
Contributor dies before collecting CPP	Survivor pension based on deceased’s CPP record
Contributor collecting CPP at 60, dies at 68	Spouse receives survivor amount — not the foregone amount
Contributor had deferred to 70 and dies at 69	Spouse gets survivor benefit — not the unreceived deferred amount
Survivor has own CPP	Combined CPP capped at maximum monthly pension (~$1,433)

Deferring CPP does not create a “bank” that survivors inherit — if you die before collecting, the deferred years are not paid out. This argues for collecting before health deteriorates significantly.

CPP and OAS Interaction

Income source	Clawback threshold applied?
CPP	Counts toward total income for OAS clawback
OAS	Subject to its own clawback above $90,997 (2026)
RRIF withdrawal	Counts toward both

For high earners with large RRIF mandatory withdrawals at 71+, taking CPP earlier at 65 rather than deferring can sometimes help — because deferring means larger CPP income starting at 70, coinciding with large RRIF income, pushing combined income well above the OAS clawback threshold.

Bottom Line

The CPP timing decision hinges on health, other income, and longevity expectations. The statistical case for deferring to 70 is strong — most Canadians who are healthy at 60 will live past the break-even points — but personal circumstances vary. Run a break-even analysis using your projected amount from My Service Canada Account before deciding.