Posted by As April draws to a close, Canadian seniors who rely on government pensions and payments to manage their monthly expenses should prepare for the upcoming Canada Pension Plan (CPP) deposit.
This article will provide all the essential details about the April 2025 CPP payment, including who qualifies, the amount you can expect, and important payment dates to remember.
Understanding the Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a government-funded program designed to provide monthly payments to eligible Canadians once they retire. Contributions to the plan are made through paycheck deductions during an individual’s working years.
Once eligible, Canadians can begin receiving CPP payments, typically starting at age 60. However, the longer you wait to start collecting (up to age 70), the higher your monthly payment will be.
CPP Eligibility
To be eligible for CPP retirement benefits, you must be at least 60 years old and have made at least one valid contribution during your working life. Contributions are generally deducted from your paycheck if you’ve worked in Canada.
In some situations, such as after a divorce or end of a common-law relationship, you might be eligible to share or split CPP credits with your former partner, which could increase your CPP payment.
Starting Your CPP Payments
You can start collecting CPP payments between ages 60 and 70. Starting early results in smaller monthly payments, whereas delaying the start of payments increases the monthly amount, which remains locked in for life once you start receiving it.
The quickest way to apply is through your My Service Canada Account online. Alternatively, you can apply via paper forms, which can be mailed or submitted at a Service Canada location.
How the CPP Payment is Calculated
The amount you receive from the Canada Pension Plan depends on several factors:
- Start Age: The earlier you start, the lower your payments. Conversely, the later you start (up to age 70), the higher the payments.
- Contributions: Your contributions during your career affect your monthly payment amount. Higher earnings generally lead to higher contributions and, consequently, higher payments.
- Post-Retirement Benefit: If you continue to work and pay into CPP after you start receiving payments (and you’re under 70), you can increase your pension through the CPP post-retirement benefit.
Additional factors, such as child-rearing periods, disability, or low-income periods, can also influence your final payment amount. To get a personalized estimate, you can use the Retirement Income Calculator on the Service Canada website.
Canada Pension Plan Payment Amount
As of January 2025, the maximum monthly CPP payment for individuals starting at age 65 is $1,433. However, most Canadians will receive less than this maximum amount.
On average, new retirees who start collecting CPP at 65 will receive approximately $900 per month. Your actual payment will depend on how much you earned and contributed throughout your working life.
Is CPP Taxable?
Yes, Canada Pension Plan (CPP) payments are considered taxable income. However, taxes are not automatically deducted unless you opt to have them taken at the source.
You can set up automatic tax deductions through your My Service Canada Account or send a paper request. If you don’t opt for deductions, you might need to make quarterly tax payments based on your total income.
For Canadians living outside Canada, a non-resident tax is automatically withheld from CPP payments.
Quebec Pension Plan (QPP)
While most of Canada uses the Canada Pension Plan (CPP), Quebec operates its own version called the Quebec Pension Plan (QPP). If you’ve worked in Quebec or lived there, your retirement benefits will be paid through the QPP instead of the CPP.
However, if you’ve worked in both Quebec and the rest of Canada, both systems coordinate, and your benefits will reflect all your contributions.
The QPP payment for April is set to be deposited on April 30, 2025.
Key CPP Payment Dates for 2025
Here are the scheduled dates for Canada Pension Plan (CPP) payments in 2025:
| Month | Payment Date |
|---|---|
| April | April 28, 2025 |
| May | May 28, 2025 |
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
These payments are typically deposited directly into your bank account if you’ve set up direct deposit. It’s always a good idea to confirm the dates and ensure your bank details are up to date to avoid any delays.
The Canada Pension Plan (CPP) plays a vital role in providing financial support to seniors across Canada. As April 2025 approaches, understanding when your next payment will arrive, how much you can expect, and the eligibility criteria is crucial for effective financial planning.
By ensuring that your personal details are up to date with Service Canada, you can make the most of this steady income source throughout retirement.
FAQs
How do I apply for CPP?
You can apply for CPP online through your My Service Canada Account or via paper forms that can be mailed or submitted in person at a Service Canada location.
When will I start receiving CPP payments?
You can start receiving CPP benefits as early as age 60 and as late as 70. The earlier you start, the lower the monthly payments. Delaying payments increases the amount you will receive monthly.
Is CPP taxable?
Yes, CPP payments are taxable income. Taxes are not deducted automatically unless you set this up through your My Service Canada Account.