Canadian retirees will see a major boost to their Canada Pension Plan (CPP) benefits in 2025. The maximum monthly CPP payment for those starting at age 65 is increasing to $1,433, giving seniors more financial stability in retirement.
This increase comes from ongoing Canada Pension Plan enhancements and adjustments to the annual earnings ceiling.
What Is the Canada Pension Plan (CPP)?
The Canada Pension Plan is a monthly pension program designed to replace a portion of a retiree’s income based on their earnings and contributions during their working years.
The amount you receive depends on how much you contributed, for how long, and at what age you start your pension.
Retirees can start receiving Canada Pension Plan as early as 60 or delay until 70. Starting early means a reduced monthly amount, while delaying can increase it significantly.
CPP Maximums and Averages for 2025
| At Age 65 | Monthly Amount |
|---|---|
| Maximum Canada Pension Plan | $1,433 |
| Average Canada Pension Plan | $844 |
The maximum payment applies to those with a near-perfect contribution record over their careers. The average payment is lower because many Canadians have gaps in contributions or did not contribute at the maximum level every year.
Why the Increase Is Happening
Two key factors drive this increase:
- Canada Pension Plan Enhancements – Gradual changes are raising the income replacement rate from 25% to 33.3% for higher contributors.
- Higher Earnings Ceiling – The yearly maximum pensionable earnings cap has risen to approximately $79,400, allowing higher contributions and higher future benefits.
These measures ensure retirees with long, consistent careers receive larger payments.
Eligibility for the Maximum CPP
To receive the highest possible CPP payment in 2025, you must:
- Have contributed to Canada Pension Plan for at least 39 years at the maximum earnings level.
- Begin receiving Canada Pension Plan at age 65.
- Delay claiming Canada Pension Plan beyond 65 for an extra increase of 0.7% per month, up to 42% by age 70.
If you start earlier than 65, your monthly amount will be reduced by 0.6% for each month you take it early.
CPP Payment Dates for 2025
Canada Pension Plan is paid monthly, usually on the third-to-last business day of each month. For 2025, key upcoming payment dates include:
| Month | Payment Date |
|---|---|
| July | July 29 |
| August | August 27 |
| September | September 25 |
| October | October 29 |
| November | November 26 |
| December | December 22 |
Direct deposit ensures you receive your funds immediately on the payment date.
How to Apply or Defer CPP
You can apply for Canada Pension Plan online through My Service Canada Account or by submitting a paper form. It is recommended to apply 6 months before you want your payments to start.
When applying, you can choose the month you want to begin receiving your pension. Deferring your start date can significantly increase your monthly payments.
The 2025 CPP increase offers Canadian retirees higher monthly income, with the maximum reaching $1,433.
To take full advantage, it’s important to plan your start date strategically, ensure consistent contributions during your career, and use direct deposit for fast access to funds. With careful planning, CPP can be a strong foundation for a secure retirement.
FAQs
What is the new maximum CPP in 2025?
The maximum monthly payment for new beneficiaries at age 65 is $1,433 in 2025.
Can I get more than the maximum?
Yes, by delaying CPP past age 65, you can receive up to 42% more per month by starting at age 70.
How do I get the maximum amount?
You must have contributed to CPP at the maximum level for almost your entire working career and start at or after age 65.