CPP retirement pension in 2026
The Canada Pension Plan (CPP) pays a monthly pension based on how much and how long you contributed. For a pension starting in January 2026 at age 65, the maximum is $1,507.65 a month. Few people receive the maximum: the average for new retirement pensions was $858.34 a month in July 2026.
Quebec workers contribute to the Quebec Pension Plan instead, which has its own amounts.
Contributions: rates, YMPE and YAMPE
| 2026 figure | Amount |
|---|---|
| Basic exemption | $3,500 |
| Year's maximum pensionable earnings (YMPE) | $74,600 |
| Employee and employer rate (CPP) | 5.95 % each |
| Maximum employee CPP contribution | $4,230.45 |
| Maximum self-employed CPP contribution | $8,460.90 |
| Year's additional maximum pensionable earnings (YAMPE) | $85,000 |
| Second contribution (CPP2) rate on earnings between the YMPE and YAMPE | 4 % employee, 4 % employer, 8 % self-employed |
CPP2 applies only to the $10,400 between the two ceilings, so the most an employee pays in CPP2 is $416. Your employer matches every dollar.
Starting early or late
- Before 65: the pension drops by 0.6 % for each month before your 65th birthday, down to 36 % less if you start at 60.
- After 65: it rises by 0.7 % for each month you wait, up to 42 % more if you start at 70. Waiting past 70 adds nothing.
Applied to the 2026 maximum, that is about $964.90 a month at 60 and $2,140.86 at 70. Your own figure depends on your contribution history, shown in your My Service Canada Account.
Old Age Security by quarter
Old Age Security (OAS) does not depend on work history. It is paid from age 65 to people who meet the residence rules, and the amount is reviewed every quarter for inflation. Maximum monthly payments in 2026:
| Quarter | Age 65 to 74 | Age 75 and over |
|---|---|---|
| January to March | $742.31 | $816.54 |
| April to June | $743.05 | $817.36 |
| July to September | $751.97 | $827.17 |
| October to December | $762.50 | $838.75 |
The full amount requires 40 years in Canada after age 18; fewer years give a partial pension.
The OAS clawback
If your net income is above a threshold, you repay 15 % of the excess through the OAS recovery tax. The repayment comes off your OAS payments from July of the following year to June after that.
| Income year | Recovery starts above | OAS fully recovered at (65 to 74) | Payments affected |
|---|---|---|---|
| 2025 | $93,454 | $152,062 | July 2026 to June 2027 |
| 2026 | $95,323 | about $155,320 | July 2027 to June 2028 |
The upper 2026 figure is an estimate until the last OAS quarter of the year is set.
Planning the monthly budget
CPP and OAS are paid monthly, usually on the same date near the end of the month, so they work well as a recurring income in a budget. Enter the net amount after any tax withheld and any OAS recovery, and check it each January and each quarter, when the amounts move with inflation.
Sources
- Service Canada: CPP retirement pension, how much you could receive (2026-10-11)
- CRA: CPP contribution rates, maximums and exemptions (2026-10-11)
- CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE (2026-10-11)
- Canada.ca: CPP and the CPP enhancement (CPP2 rate) (2026-10-11)
- Service Canada: CPP, decide when to start (2026-10-11)
- ESDC: Maximum benefit amounts, CPP 2026 and OAS January to March 2026 (2026-10-11)
- ESDC: Maximum benefit amounts, OAS April to June 2026 (2026-10-11)
- ESDC: Maximum benefit amounts, OAS July to September 2026 (2026-10-11)
- Service Canada: OAS payment amounts (October to December 2026) (2026-10-11)
- Service Canada: OAS pension recovery tax (2026-10-11)