Posted by In a major boost to Canadian retirees, the Canada Revenue Agency (CRA) has confirmed that the maximum monthly Canada Pension Plan (CPP) benefit for April 2025 will be $3,716.
This marks a significant financial advantage for seniors who have contributed the maximum amount to Canada Pension Plan and delayed their retirement to age 70. With inflation and living costs continuing to rise, this payout brings timely relief to many.
What Is the $3,716 CPP Monthly Pension?
The $3,716 monthly CPP payout is the highest possible benefit under Canada Pension Plan in 2025. It applies to those who:
- Delay collecting Canada Pension Plan until age 70
- Contribute the maximum amount annually for over 39 years
- Reach or exceed the Year’s Maximum Pensionable Earnings (YMPE) every year
This benefit totals $44,592 annually, significantly higher than the average Canada Pension Plan payment of $831.92/month.
Eligibility Criteria for the $3,716 CPP Pension
To qualify for the maximum monthly CPP payout, seniors must meet all of the following:
| Eligibility Criteria | Details |
|---|---|
| Minimum Age | 70 |
| Contribution History | Maximum Canada Pension Plan contributions for 39+ years |
| Earnings Threshold | Met or exceeded YMPE each year |
| Residency | Canadian or former resident contributor |
Delaying Canada Pension Plan from age 65 to 70 increases your benefit by 42%. Starting at 60 results in a reduction of up to 36%.
CRA CPP Payment Schedule – April 2025
CRA issues Canada Pension Plan payments on a set schedule. For April 2025, the expected payment date is:
- April 26, 2025 (Third-last business day of the month)
Seniors using direct deposit will receive funds in their accounts the same day.
How the $3,716 CPP Is Calculated
CRA calculates your Canada Pension Plan based on:
- Average earnings over your working life
- Number of years of contributions
- Starting age of your Canada Pension Plan benefits
- YMPE, which is $72,200 for 2025
Delaying benefits until age 70 maximizes the monthly amount. Only consistent maximum earners over decades qualify for the $3,716 figure.
Don’t Qualify for $3,716? Here’s What You Can Do
If you won’t reach the maximum amount, there are still ways to increase your monthly CPP:
- Delay your Canada Pension Plan until age 70
- Avoid years with low or no income
- Combine Canada Pension Plan with Old Age Security (OAS) and Guaranteed Income Supplement (GIS) for added support
These steps can push your retirement income over $5,000/month when combined.
How to Apply for CPP Benefits
Applying for Canada Pension Plan is straightforward:
Online via My Service Canada Account (MSCA):
- Log in and select “CPP Retirement Pension”
- Complete and submit the form
By Mail:
- Fill out Form ISP1000
- Mail it to your nearest Service Canada office
It’s best to apply 6 months before your planned start date. Canada Pension Plan is taxable income, so plan accordingly.
Tax Implications of CPP Pension
Your CPP payments are included in your taxable income. CRA allows:
- Withholding taxes on request
- Claiming age and pension income credits
- Combining with tax-efficient strategies for retirees
Speak to a tax advisor or planner to minimize taxes on your retirement income.
The $3,716 Canada Pension Plan monthly pension announced for April 2025 offers a significant opportunity for Canadian seniors who’ve planned wisely and contributed consistently.
While not everyone will receive the full amount, knowing how to increase your Canada Pension Plan and combine it with other benefits like OAS and GIS can help you build a stable, secure retirement.
Plan ahead, understand your eligibility, and take advantage of what the CRA offers to ensure your golden years are financially worry-free.
FAQs
What is the earliest age to start receiving Canada Pension Plan?
You can start Canada Pension Plan at age 60, but doing so reduces your benefit by up to 36% compared to waiting until 65.
Can I receive CPP while living abroad?
Yes, if you contributed to CPP during your time in Canada, you’re still eligible regardless of where you live.
Is the $3,716 monthly pension available to everyone?
No, only those who contributed the maximum amount for 39+ years and defer CPP until age 70 qualify for the full $3,716/month.