Wondering what the 2023 CPP payment dates and the amount you can receive are? Then this post is for you.
Canada Pension Plan (CPP) is one of the retirement benefits administered by the Canada Revenue Agency and a key source of retirement income for eligible seniors.
In this post, we cover the CPP payment dates for 2023, the eligibility, benefits amount, application process and every other thing you need to know.
We also cover other benefits you may be eligible for as a Senior in Canada.
CPP Payment Dates 2023
The Canada Pension Plan payments are paid by CRA to eligible beneficiaries once every month. The CPP payment dates for 2023 are:
|Benefit Months||Payment Dates|
|January||January 27, 2023|
|February||February 24, 2023|
|March||March 29, 2023|
|April||April 26, 2023|
|May||May 29, 2023|
|June||June 28, 2023|
|July||July 27, 2023|
|August||August 29, 2023|
|September||September 27, 2023|
|October||October 27, 2023|
|November||November 28, 2023|
|December||December 20, 2023|
The Canada Revenue Agency (CRA) schedules the CPP payment dates annually, and the payments usually fall on the third to the last business day of each month (January to November).
But December payments are made earlier – usually two business days to Christmas.
CPP payments are made by CRA through a direct deposit to your bank account or by mailing you a cheque. You will only receive the payment through cheque if you don’t setup a direct bank deposit.
However, setting up direct deposits ensures you’ll receive your benefits on time and on the CPP payment dates for 2023 in the table above.
And if you already receive other benefits through direct deposit before your CPP eligibility starts, CRA will automatically pay your CPP benefits using the same payment method.
Finally, if you’re set up for direct deposit but didn’t receive your pension benefit on the CPP payment dates above, please contact CRA.
What is Canada Pension Plan (CPP)?
Canada Pension Plan (CPP) payment is a monthly retirement benefit administered by the Canada Revenue Agency to eligible retirees in Canada.
It is a taxable benefit that aims to replace part of the income of retirees. That is, CPP will replace part of your retirement income for the rest of your life once you qualify for the pension.
Though the standard retirement age in Canada is 65, you can start receiving CPP as early as age 60. But delaying it until age 70 will increase monthly amount.
Unlike other government benefits, CPP is a taxable income that you must report quarterly or through monthly deductions.
However, you can save on taxes by sharing your CPP benefits with your spouse or common-law partner.
Here are some quick facts about CPP:
- CPP is a taxable monthly pension paid to retirees
- The maximum pension you can receive is currently $1,306.57
- Standard retirement age is 65 for CPP, but you can start earlier or delay it by up to 5 years
- The monthly amount are indexed against inflation so CPP amounts will generally see some increases annually
- CPP is not automatic – you have to apply to start receiving it
Eligibility For CPP Payments 2023
The CPP payment is available for all Canadian workers, except for Quebec residents who have the Quebec Pension Plan in place of CPP.
The eligibility for the CPP payments for 2023 remains the same with previous years. In general you need to meet the 2 requirements below to qualify for CPP payments:
- Aged 60 and above
- Made at least one contribution to the CPP
Though the minimum age you can start receiving CPP is 60, you can apply for it as early as a month after your 59th birthday. We’ll cover the CPP application process in details below.
A valid contribution to CPP can be from work you did in Canada or through credits you received from an ex-spouse or former common-law partner after ending your relationship.
But how much you will actually receive depends on a number of factors. We’ll look at these factors next.
How Much CPP Will I Get in 2023?
If you’re 65 years old, you can receive up to $1,306.57 CPP payment in 2023 as retirement pension. This is the maximum benefit amount – most eligible retirees will receive less than this amount.
In fact, the average CPP monthly amount paid to those aged 65 is $811.21 as at January 2023 according to CRA.
Generally, how much CPP payments you get depends on the following factors:
- Age you started receiving CPP benefits
- Number of years you have been contributing to CPP
- Your total contribution to CPP
- Your average income over your working life
To receive the maximum CPP benefits, you must have contributed to CPP for at least 39 years of the 47 years from ages 18 to 65. In addition, you must have made the maximum contribution to CPP based on the applicable yearly annual pensionable earnings (YMPE) set by CRA for those 39 years.
The Canada Revenue Agency increases the CPP payment amount every January to reflect the cost of living benchmarked against the Consumer Price Index (CPI).
That means, recipients can generally expect a small increase in their CPP amounts every year as inflation rises. But the CPP payment amount will not decrease if the cost of living goes down.
Average & Maximum CPP Payments for 2023
The CRA sets the average, and maximum CPP payment amounts every January based on the current Consumer Price Index.
The average and maximum CPP payments for 2023 are:
|Type of pension or benefit||Average amount for new beneficiaries||Maximum payment amount|
|Retirement pension (at age 65)||$811.21||$1,306.57|
|Post-retirement pension (at age 65)||$5.48||$40.25|
|Post-retirement disability benefit||$558.74||$558.74|
|Survivor’s pension – younger than 65||$510.54||$707.95|
|Survivor’s pension – 65 and older||$331.34||$783.94|
|Children of disabled CPP contributors||$281.72||$281.72|
|Children of deceased CPP contributors||$281.72||$281.72|
|Death benefit (one-time payment)||$2,499.24||$2,500|
|Combined survivor’s and retirement pension (at age 65)||$927.63||$1,313.13|
|Combined survivor’s pension and disability benefit||1,156.71||$1,542.77|
Eligibility For 2023 CPP Maximum CPP Payments
You’ll be eligible for the 2023 CPP maximum payment amount for age 65 if you’ve made the maximum annual CPP contribution for at least 39 years before age of 65.
The maximum CPP contribution varies annually and is calculated based on the Year’s Maximum Pensionable Earnings (YMPE). The the maximum CPP contribution for 2023 are:
- $7,508.90 for the self-employed
- $3,754.45 for employers and employees
These figures are derived by multiplying the YMPE by the contribution rate for the year, with both numbers set annually by CRA.
The YMPE for 2023 is $66,600. YMPE is determined based on growth of Canadian average salaries and wages.
An higher and additional limit called year’s additional maximum pensionable earnings will be introduced in 2024 as part of the CPP Enhancement.
We’ll cover the Canada Pension Plan enhancement in detail below.
CPP Benefits Enhancement/Increase 2022-2024
Starting 2019, the federal government started enhancing the CPP benefits with the aim of increasing the future retirement pension and other benefits for those that contribute to CPP.
Before now, CPP replaced 25% of the average earnings over your working life. With the enhancement, CPP will now grow to replace a third or 33.33% of your earnings after 2019.
Effectively, maximum post-retirement benefits will increase by up to 50% for those who make the enhanced contribution to CPP for 40 years starting 2019.
Also, there will now be 2 components of Canada Pension Plan (CPP). The base component based on the previous regime, and the enhanced component for contributions made after January 1, 2019.
To fund the increase, the federal government also made changes to the CPP contribution rules, but the other eligibility requirements remain the same.
The bottom line is…
Your CPP contributions have gone up and will continue to do so for the next few years.
The CPP contribution rates will increase by 0.15% – 0.25% between 2019 and 2023 for employee and employer contributions.
For example, the CPP employee and employer contribution rate increased to 5.70% in 2022 from 5.45% in 2021. This will continue to increase until 2023, when it reaches 5.95%.
Also, the self-employed contribution rate increased from 10.90% in 2021 to 11.40% in 2022, with 11.90% expected for 2023.
Overall, all the CPP increases as a result of the CPP enhancements are going to be gradually introduced over a 7 year period that started in 2019 in 2 steps.
The first step will end 2023 and focuses on the contribution rate. The second step kicks in starting 2024 with the introduction of year’s additional maximum pensionable earnings (YAMPE).
YAMPE will be a second and higher limit to the current YMPE that is used to calculate the maximum you can contribute to CPP.
This means, you’ll start contributing more to CPP if you earn more, and also receive higher CPP benefits in the future when you retire.
How Much Can You Contribute to CPP?
CPP contribution limit varies by individual’s work. For 2023, self-employed individuals can contribute up to $7,508.90, while employers and employees can contribute up to $3,754.45 each.
As mentioned previously, the CPP contribution limit is set by the CRA annually according to the Year’s Maximum Pensionable Earnings (YMPE) or Consumer Price Index.
Since the amount you contribute determines your CPP payment, it’s wise to start contributing as early as possible and delay your payment after reaching the age of 65 to maximize your post-retirement benefits from CPP.
When to Start Receiving CPP Payments?
The standard retirement age under CPP is 65 but you can start earlier or delay it for up to 5 years.
That is, you can start receiving CPP benefits once you reach the age of 60. But doing so will reduce your monthly pension amount by 36%.
This is because CPP pension amount is reduced by 0.6% monthly or an 7.2% annual deduction if you start receiving your CPP benefits before 65.
On the other hand, your CPP monthly payments will increase by 0.7% for each month you delay CPP (or 8.4% annually) after the age of 65. That means you can expect a 42% increase in your CPP payment if you wait till age 70 to start receiving CPP.
Here’s a table summarizing the effect of starting earlier or delaying your CPP payments.
|When CPP Starts||Monthly||Annual||Maximum|
|Before age 65||0.6% lower||7.2% lower||36% lower|
|After age 65||0.7% higher||8.4% higher||42% higher|
So when should you start receiving CPP?
Though you’ll get a lower CPP payment if you start earlier than age 65, it is not necessarily a bad thing depending on your financial situation. Delaying it till age 70 to receive an higher amount is also not necessarily the best option.
You’ll need to consider your other sources of income, your overall tax implication, partner’s income and other factors to decide on the best time to start receiving CPP.
For example, waiting till age 70 could mean you’ll be in a higher tax bracket, especially after adding your RRSP withdrawals to the equation, and end up with less money in your pocket.
If you’re close to retirement, you should consult with a financial advisor to help you run the numbers and consider different scenarios to arrive at the best time to start getting CPP.
CPP Retroactive Payments
So can I apply for retroactive payments of CPP? Yes, you can but with some caveats.
You can apply for up to 12 months retroactive payments of CPP but only if you start taking CPP after age 65. Retirees who start receiving CPP earlier than age 65 are not eligible for CPP Retroactive payments.
The 12 months covers the month you apply and the previous 11 months. However, the retroactive payment period can not be earlier than the month you turned 65.
Here’s an illustration:
Suppose you turned 65 in January 2023 and applied for CPP 7 months after in August 2023 Though you can elect to receive retroactive payments for up to 12 months, you won’t able to receive the pension starting September 2022, for example, since that would be earlier than the month you turned 65.
Other CPP Benefits For 2023
Here are other CPP benefits you may receive in 2023 in addition to the monthly retirement pension:
1. CPP Post-Retirement Pension
You will receive the post-retirement pension when you contribute to the CPP after retirement till age 70.
The contribution you make goes towards your post-retirement benefit and increases your CPP retirement benefits.
2. CPP Children’s Benefit
This benefit is administered to the dependent children of deceased or disabled CPP contributors. To qualify, the children must be under the age of 18 or 25 (if enrolled full-time in a recognized school or university).
In addition, the recipient must be the contributor’s natural child, legally adopted child, or in legal custody of the contributor below the age of 21.
3. CPP Disability Pension
Also known as CPP disability payment, you will receive this benefit if you suffer from a severe and prolonged disability. However, you must have made enough contributions to CPP to qualify for this additional benefit.
Your kids may also qualify for the monthly CPP children’s benefit if you’re eligible for the disability pension.
The benefit is automatically converted to a CPP retirement pension when you reach the age of 65.
4. Survivor’s Pension
CPP survivor’s pension is a monthly payment for the deceased contributor’s legal spouse or common-law partner.
If the deceased contributor’s legal spouse or common-law partner is already a beneficiary of the CPP retirement pension, the two pensions will be combined into a single monthly payment. But you’ll receive a lower amount than the sum of both benefits.
5. Death Benefit
A death benefit is a one-time payment paid to a deceased CPP contributor’s estate or qualified individual. The deceased must have contributed to the CPP for not less than 10 calendar years or one-third of the contributory period (minimum of 3 years) for the deceased.
A person eligible for the death benefit may also qualify for the Survivor’s pension or the CPP children’s pension.
What Happens to CPP After the Death of a Contributor?
The children, estate, spouse or common-law partner of a deceased CPP contributor will receive CPP benefits on the deceased behalf.
The children of a deceased CPP contributor will receive children’s benefits if they’re below age 18 or 25 if they’re enrolled in full-time attendance at a school.
On the other hand, the deceased CPP contributor estate will receive death benefit while the deceased’s legal spouse or common-law partner receives survivor’s pension.
If there’s no estate, the CPP death benefit is paid to the person responsible for the funeral expenses, the deceased’s partner or the next-of-kin in that order of priority.
CPP and Guaranteed Income Supplement (GIS)
CPP beneficiaries can also qualify for Guaranteed Income Supplement (GIS) in Canada. GIS is tax-free benefits for Canadian low-income retirees.
The CRA will notify you about the GIS qualification a month after turning 64. Where there’s no letter from the CRA, you may have to apply for the GIS benefit.
However, the GIS benefits are automatically administered to Old Age Security (OAS) beneficiaries.
How to Apply for CPP Payment
Unlike other government benefits, CPP is not administered automatically. The CRA requires you to apply in advance for the benefit.
Here are two ways of applying for the CPP payments.
- First Option: Apply through My Service Canada Account (MSCA). After applying, the CRA will send you a mail notification within 7-14 days.
- Second Option: Download and fill the CPP application form and mail it to the Canada Revenue Agency. You can also mail the application to the nearest Service Canada office. The CRA will notify you within 120 days of submitting your application. Any missing information on your application may extend the notification duration.
Once your application is approved, you should start receiving your pension in the next CPP payment dates.
If you didn’t receive your first CPP amounts on the CPP payment dates scheduled by CRA, feel free to contact CRA.
How Long Does CPP Application Take?
CPP applications take 7-14 days to process and a decision made if you applied online. It takes up to 120 days if you use a paper application.
But the application can take significantly longer if your application is missing some important information or has errors.
You can always login to MSCA to view your application status if you applied online.
How to Make Good Use of Your CPP Payments
You’re free to spend the CPP payment the way you like. All the government requires from you is to report your CPP taxes quarterly or through monthly deductions.
However, having your CPP payment grow in one of the best high-interest savings accounts in Canada could help you maximize your retirement income.
You may also also consider investing your CPP payment in a tax-advantaged account, such as a Tax-Free Savings Account (TFSA).
Don’t hesitate to contact a financial advisor if you’re unsure how to invest your CPP benefits. An experienced financial advisor will help you identify the best investment option that suits your situation.
When Does CPP Contributions End?
The maximum age to contribute to CPP is 70, even if you’re still working.
Usually, CPP contributions stop once you retire and start receiving CPP. However, you can contribute to CPP post-retirement if you continue to work.
You can choose to end the contribution at age 65. If you don’t, the contributions will automatically end at age 70.
Any CPP contributions made after retirement will go to your post-retirement benefit (PRB) and effectively increase how much retirement income you’ll get.
FAQs on 2023 CPP Payment Dates
Yes. CPP is a taxable income that you must report when filing your taxes. You can either pay the taxes quarterly or request a monthly tax deduction through your My Service Canada Account, or fill and email the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP3520CPP) form to the nearest Service Canada office.
However, you can save on taxes by sharing your CPP benefits with your spouse or common-law partner.
It depends on your situation. It could be 65 years or older. Delaying the CPP payment will automatically increase your benefits. However, delaying the CPP payment without reliable retirement income is not the best decision.
The CRA can administer the CPP benefit payments to citizens outside the country. However, it depends on the country you reside in, as Canada’s social security agreements vary from one country to another.
Check this guide to learn how leaving abroad affects your retirement benefits like CPP and OAS.
Absolutely. The survivor’s pension is administered to the deceased contributor’s legal spouse or common-law partner.
If you’re already a beneficiary of the CPP retirement pension, the CRA will combine your pension with the survivor’s pension you’re eligible to receive for your deceased husband.
The total pensions you receive will depend on your age, pension benefits and the amount your deceased husband contributed.
Yes. Depending on the contribution of the deceased CPP contributor, a one-time death benefit is administered to the deceased’s estate or beneficiary.
CPP is usually deposited on the third of the last working day of each month with the exception of December payments that are usually deposited on two working days to Christmas.
Sure. You’re allowed to cancel the benefit within 12 months of starting. All you need is to send a written request for CPP cancellation from Service Canada.
However, you may be asked to return all the benefits you have received.
Sure, you can work while collecting the CPP until you reach the age of 60. However, the longer you delay the CPP the higher payment you will receive in the future.
It can take up to 120 calendar days (4 months) for the CRA to decide on your CPP disability application.
Yes! CPP benefits are going up in 2023 based on the Consumer Price Index. The government increased the CPP benefits by 6.5% in January 2023.
CPP increased by 6.5% in January 2023 based on Consumer Price Index (CPI). This is 3.8% higher compared to the January 2022 increase of 2.7%.
That’s all about the CPP payment dates 2023. If you have more questions about the benefits, please leave a comment below.
The CPP benefit is only one out of many government benefits you may be eligible for in Canada.
If you like this post, go through our other relevant blog posts to explore other benefits you may be eligible for.