When Should You Begin Receiving Your CPP Pension — Timing Strategies For The Last Two Months Of 2025

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive this payment for life, starting any time between age 60 and 70.

In the final months of 2025, thousands of Canadians are considering when to begin their CPP payments. The decision you make this year can permanently affect how much you receive each month—and how much you collect over your lifetime.

CPP Pension Overview

Category	Details (as of 2025)
Administered by	Service Canada
Standard age to start	65 years (unreduced pension)
Earliest start age	60 years (reduced by 0.6% per month before 65)
Latest start age	70 years (increased by 0.7% per month after 65)
Maximum monthly CPP (at 65)	$1,433.00
Average monthly CPP (at 65)	$899.67
Next payment date	October 29 and November 27 for 2025
Frequency	Monthly, paid by direct deposit or cheque
Tax status	Taxable income; deductions can be requested
Payment method	Direct Deposit (highly recommended)

How Timing Impacts Your CPP Payment

Timing is everything when it comes to maximizing your CPP pension. Choosing when to start depends on your age, income needs and health.

1. Starting Early (Age 60–64)

• You can apply as early as 60.
• Your pension is reduced by 0.6% per month you take it before 65—up to a 36% reduction.
• Example: If your full amount at 65 is $1,433, starting at 60 would give you about $917 per month for life.

Pros: Immediate income, flexibility if retiring early.
Cons: Lower monthly amount for the rest of your life.

2. Starting at 65 (Standard Age)

• This is considered the baseline or unreduced pension.
• You receive the full amount you’ve earned based on your lifetime contributions.

Pros: Balanced choice between early access and long-term value.
Cons: May not be optimal if you live well beyond 80 or have other pension sources.

3. Delaying Past 65 (Up to Age 70)

• For every month you delay after 65, you earn an extra 0.7%.
• Waiting until 70 can increase your payment by up to 42%.
• Example: If your normal payment is $1,433, waiting until 70 could increase it to about $2,035 per month.

Pros: Much higher guaranteed lifetime income.
Cons: You must wait longer to receive any benefit.

Factors to Consider Before Applying

1. Life Expectancy and Health

If you expect a long retirement or have a family history of longevity, waiting can increase your lifetime total income.
Those with health concerns or shorter life expectancy might benefit from starting earlier.

2. Other Income Sources

If you have strong private savings or employer pensions, delaying CPP may be strategic. If CPP will be your main income, starting earlier may make sense.

3. Inflation Protection

CPP is fully indexed to inflation, which means your payment amount rises each January based on the Consumer Price Index (CPI).
This makes delaying more valuable for those concerned about future cost-of-living increases.

4. Taxes and Benefits

Because CPP is taxable, it may push some retirees into a higher tax bracket.
Coordinate with tax credits like the Old Age Security (OAS) to avoid clawbacks.

How to Apply in Late 2025

1. Online: Sign in to your My Service Canada Account (MSCA) and apply electronically.
2. By Mail: Download the paper application and send it with required documents.
3. Choose a Start Month: You can select any month within 12 months after you apply.
4. Track Status: MSCA lets you monitor your application progress and view your contribution history.
5. Direct Deposit: Update your bank information to ensure you receive payments on time.

Evaluate your health, savings, and lifestyle goals before deciding. If you can afford to delay until 65 or 70, you’ll secure a larger inflation-protected benefit. But if immediate income is needed, applying before year-end 2025 ensures steady support for the new year.

Whether you begin now or wait, make sure your application, tax preferences, and direct deposit are updated. By choosing the right timing, you can make your CPP work smarter for your retirement years.

FAQs