Canada’s public pension system just got a major boost for retirees. If you’re 60 or older and have contributed steadily to the Canada Pension Plan (CPP), you could now receive up to $1560 a month in 2025. But not everyone qualifies for the full amount, and there’s more to know than just the number. When does it get paid? Who qualifies? How do you apply? Let’s break it all down.
Overview
The CPP is a government-run retirement program funded by payroll deductions. It’s designed to provide monthly income to Canadians after they retire. In 2025, the maximum monthly CPP payment is rising to $1560—offering much-needed relief in the face of rising living costs.
Here’s a snapshot of what’s new:
| Feature | Details |
|---|---|
| Maximum CPP Monthly Payment | Up to $1560 |
| Eligibility | Ages 60–70 with consistent maximum contributions |
| Payment Schedule | Third-last business day of each month |
| Application Method | Online via My Service Canada or paper application |
| Info Source | Official Canada Pension Plan (CPP) portal |
Definition
So, what exactly is the Canada Pension Plan?
CPP is a retirement income program funded through contributions made by working Canadians and their employers. These deductions are mandatory and taken directly from your paycheck throughout your career. Once you retire, CPP pays you monthly based on how much—and how long—you contributed.
If you’ve contributed the maximum allowed over many years, you may now qualify for the full $1560 monthly amount starting in 2025.
Increase
Where did this $1560 figure come from?
This change is part of a long-term CPP enhancement that started back in 2019. The goal? Strengthen retirement income for Canadians by:
- Raising contribution rates: Workers and employers now contribute a little more to CPP than before.
- Lifting pensionable earnings cap: You can now contribute more if you earn more, which boosts your eventual benefit.
- Adding a post-retirement option: Even if you’re retired and still working, continuing to contribute can increase your CPP payments.
This reform is gradual and aims to provide a bigger payout for today’s and tomorrow’s seniors.
Dates
Wondering when the $1560 payments will actually hit your account?
CPP benefits are issued on the third-last business day of every month. Here’s the 2025 schedule:
| Month | Payment Date |
|---|---|
| January | January 29, 2025 |
| February | February 26, 2025 |
| March | March 27, 2025 |
| April | April 26, 2025 |
| May | May 29, 2025 |
| June | June 27, 2025 |
Make sure you’ve set up direct deposit to receive your payments without delay.
Eligibility
Now, not everyone will get $1560. Here’s how to know what you might receive.
Contribution History
You need to have maxed out your contributions for most of your working life. For 2025, the maximum pensionable earnings is set at $68,500. The closer your annual earnings were to that amount, the better your chances.
Start Age
You can start CPP at age 60, but if you do, you’ll face a 0.6% reduction per month before you turn 65. That’s a 36% cut if you start at 60.
Wait until 70, and you’ll get 0.7% extra per month past 65—up to 42% more.
Example
Let’s say you:
- Turn 65 in 2025
- Have contributed the max for 39 out of 40 years
You could qualify for the full $1560 per month. But start at 60 and it could drop below $1000 monthly.
Years of Contributions
CPP is calculated using your best-earning years. You’ll need a long record of consistent, high-level contributions to hit the max payout. Gaps or lower-earning years may reduce your benefit.
Application
Ready to apply? Here’s how:
Online
The easiest way is through My Service Canada Account. Log in, fill out the form, and track your application.
Paper
Prefer paper? Download the application from the Service Canada website, fill it out, and mail it in.
Timing
Apply at least 6 months before you want to receive your first payment. Delays can happen, so plan ahead to avoid disruptions in your income.
The $1560 CPP monthly benefit is a welcome upgrade for many retirees in 2025. If you’ve contributed consistently over your career and you’re nearing retirement, now’s the time to review your CPP eligibility and decide when to apply. The earlier you prepare, the better your retirement years will look.
FAQs
What is the max CPP payment in 2025?
Up to $1560 monthly if you qualify.
When are CPP payments made?
On the third-last business day of each month.
How do I apply for CPP?
Online through My Service Canada or by mail.
Is CPP taxable income?
Yes, CPP benefits are subject to income tax.
Can I increase CPP after retirement?
Yes, if you keep working and contributing post-retirement.
