If you already receive CPP payments, you might wonder, “When will my CPP payment come through?” Alternatively, you might wonder, “When is the next CPP payment date?”
The government issues CPP payments using a monthly schedule. The payment dates change from month to month. As a rule of thumb, however, you can expect a CPP payment on the third to last business day of each month.
You might choose to receive your payments by mail instead of direct deposit. In that case, the payments will get mailed out on the third business day of each month.
However, you may want to know the exact date that your payment should arrive. If so, here’s the schedule of 2022 and 2023 CPP payment dates:
2022
January 27, 2022
February 24, 2022
March 29, 2022
April 27, 2022
May 27, 2022
June 28, 2022
July 27, 2022
August 29, 2022
September 27, 2022
October 27, 2022
November 28, 2022
December 21, 2022
2023
January 27, 2023
February 24, 2023
March 29, 2023
April 27, 2023
May 26, 2023
June 28, 2023
July 27, 2023
August 29, 2023
September 27, 2023
October 27, 2023
November 28, 2023
December 21, 2023
If you like, you can also check the payment dates using the Canadian government website. There, you’ll find various calendars for CPP payment dates this year. You’ll also find calendars for other federal benefits.
How Much Are CPP Payments?
If you have yet to receive a CPP payment, you might wonder how much you’ll receive in benefits each month. Your monthly benefit will vary based on several factors.
However, there are a few things that will influence your payment dates more than others. For example, the date that you start receiving benefits will affect how much you receive.
The amount of the monthly CPP payment you receive will also vary based on how much you’ve contributed. It will also vary based on how long you’ve contributed to the fund. In this regard, the government will consider the average of your lifetime earnings.
You can find out more about your eligibility by visiting your My Services Canada account. There, you can use your account to access a personalized estimate based on your work history.
You can also access the CPP benefit calculator to estimate your potential monthly payments. However, you’ll need some information to use the tool. For example, you’ll need your CPP Statement of Contributions.
There also other factors that could affect how much you receive in CPP benefits each month. For example, you might make contributions after the age of 65.
Also, you may continue to work once you start receiving your pension. In addition, during your working years, you may have had periods of low or no salary. All these factors can affect how much you receive in monthly CPP payments.
How Much Will My CPP Payments Be?
The easiest way to understand how much CPP you will receive is simple in theory. You will earn back what you contributed. The government of Canada defines the Yearly Maximum Pensionable Earnings (YMPE). The YMPE is the maximum pensionable earnings for CPP.
As salaries can be any amount, exact CPP payments will differ greatly from person to person. For a general idea of how much your CPP payments will be, we have created the chart below based on salary ranges.
This chart is based on the assumption that you have worked for 39 years in Canada. If you have worked for 39 years or less, you would divide your contribution years by 39 and multiply the total with the dollar amount in the second column.
Salary During CPP Contribution Years
Average Monthly CPP Payments in 2022
$20,000 or less
Average of $417 or less
$20,000 - $30,000
Average of $522
$30,000 - $40,000
Average of $731
$40,000 - $50,000
Average of $941
$50,000 - $60,000
Average of $1149
$60,000 +
Average of $1,253.59
Increase to the CPP in 2022
As of January 2022, the Canadian government increased the CPP benefits by 2.7%. These calculations were based on the Consumer Price Index 12 months’ preceding. As we are seeing inflation on the rise, it is expected that these numbers will be even higher in 2023. Currently, in 2022 and at the time this article was updated in August, the YMPE is $64,900 which is up from $61,600 since 2021. Many years ago, the government decided that the CPP rates would increase on both the employee and employer side.
To provide a clearer snapshot of what the increases look like, refer to the chart below:
Contribution Year
Rate (Employers and Employees)
Contribution Rate Combined
2018
4.95%
9.90%
2019
5.10%
10.20%
2020
5.25%
10.50%
2021
5.45%
10.90%
2022
5.70%
11.40%
2023 and on
5.95%
11.90%
As the government of Canada seeks to provide more financial support to the aging population, the CPP payments will continue to increase as contribution rates are raised.
Increase to the CPP in 2024 - 2025
According to the Government of Canada website, beginning in 2024 you will see a second higher limit introduced. This will allow a person to invest more of their individual earnings to the Canada Pension Plan. This new introduction will be known as the YMPE (Yearly Maximum Pensionable Earnings) and does not replace increase amounts from 2023. Rather it will be considered a "second earning ceiling", which will subject your earnings to 2 earnings limits.
The new process of earnings will commence at the first earnings ceiling which is projected to be in the range of $69,700 in 2025. It will continue into the the second earnings ceiling and increase even further by 2025 and is projected to be $79,400. This is an increase of 14%.
Collecting CPP is A Great Way to Save in Your Retirement
Maximum CPP Retirement Pension Benefit - $1,253.59/month
Average CPP Retirement Pension Benefit - $779.32/month
Now let's take a look at the amounts for all CPP payments as the averages are compared from 2021, to the maximum amounts in 2022.
Benefit
Avg. Amount for New Beneficiaries (Oct 2021)
Max. Monthly Payment Amount (2022)
Retirement pension (at age 65)
$779.32
$1,253.59
Post-retirement benefit (at age 65)
$9.56
$36.26
Disability benefit
$1,064.80
$1,457.45
Post-retirement disability benefit
$524.64
$524.64
Survivor's pension - younger than 65
$463.40
$674.79
Survivor's pension - 65 and older
$315.48
$752.15
Children of disabled CPP contributors
$264.53
$264.53
Children of deceased CPP contributors
$264.53
$264.53
Death benefit (one-time payment)
$2,496.06
$2,500.00
Combined survivor's and retirement pension (at age 65)
$949.52
$1,257.13
Combined survivor's pension and disability benefit
$1,152.44
$1,467.04
How Can I Maximize My CPP Benefits?
Not everyone receives the maximum CPP payment. Given the opportunity, however, you’ll most likely want to receive as much of the benefit as possible.
To receive the maximum CPP payout, you’ll need to know the Yearly Maximum Pensionable Earnings (YMPE). The YMPE is an amount established by the government each year. It’s a limit to how much you can contribute to your pension annually.
Each year, the government increases the YMPE limit. In 2020, for example, the YMPE was $58,700.
In 2021, the government raised the YMPE limit to $61,600. Once you’ve earned $61,600 in 2021, you’ll stop contributing to your CPP fund.
Your monthly CPP payments will also vary depending on how long you made contributions. You’ll need to contribute the maximum amount for at least 39 years to receive the maximum CPP benefit.
Before you receive benefits, however, you’ll need to apply. Fortunately, you’ve come to the right place to find out how.
Applying for CPP Coverage
The Canadian government makes it easy to apply for CPP benefits. However, there’s something important that you need to know about applying.
It’s in your best interest to apply ahead of your retirement date as soon as possible. The Canadian government recommends applying as much as 120 days in advance of your retirement date.
With this in mind, you’ll want to register for a My Service Canada account if you haven’t done so already. After registering, you’ll receive a personal access code. With this information, you can complete your registration.
You can also apply for CPP benefits by mail. However, the process is much easier to complete online.
You’ll have immediate access to your historical contributions through your online account. You’ll also have access to your benefits data. Using your My Service Canada account, you can view all your related information at a glance.
There are a few circumstances where you’ll need to apply by mail for CPP benefits. For example, you’ll have to apply by mail if you’ve ever received CPP funds. You also have to apply by mail if you’ve ever been denied CPP benefits.
Furthermore, you’ll need to apply by mail if you are a Canadian citizen. Finally, you’ll need to apply by mail if you’ve given someone power of attorney to manage your CPP account.
When to Apply for the CPP
Typically, you’d start receiving CPP benefits at the age of 65. However, you can begin receiving reduced benefits as early as age 60.
Alternatively, you can receive increased benefits if you delay retirement. You can hold off on retiring until the age of 70. Here, you may want to consider your retirement timing.
As far as applying for CPP benefits at different ages, the process is the same despite your age. Whether you’re 60, 65 or 70, you’d follow the same steps.
Still, you might consider delaying your CPP benefits past the age of 65. If so, you’ll earn an increase of 0.7% every month. This increase adds up to 8.4% every year.
You can delay your retirement until you turn 70 years old. If you decide to wait until your 70, you can earn as much as a 42% increase in benefits.
Alternatively, you may want to start collecting your pension as early as age 60. In that case, you’ll earn .6% less for each month of early retirement.
The total reduction can equal as much as 7.2% per month. If you retire as soon as possible, that can mean a reduction in benefits of as much as 36%.
Related Article
Read more about when and how to apply for CPP in this very informative article.
In 2021, the government has also made some changes to CPP benefits. For example, there’s now a one-time payment to individuals with disabilities. The payment is meant to help disabled individuals manage the challenges of the coronavirus pandemic.
Seniors will also receive a one-time tax-free CPP payment. Here, the government hopes to support seniors in covering increased costs due to the coronavirus.
If you’re eligible for the Old Age Security Pension, you’ll receive a $300 payment. If you receive the Guaranteed Income Supplement, you’ll receive a $200 payment.
Some individuals might receive both benefits. In that case, they’d receive a $500 payment.
There’s no need to apply for the additional one-time payments. The government will issue the payments as soon as possible.
As for CPP benefits, Service Canada urges consumers to apply for their benefits online and from the comfort of home during the pandemic. In the meantime, the government will not require you to submit documentation to support your application. However, they may request information at a later time.
Your Money Matters: Stay Informed!
Now you know more about CPP payment dates. Hopefully, this information will help you to plan your financial future.
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