CPP provides three main types of benefits: retirement pensions, disability pensions, and survivor benefits
CPP Retirement Pension
A retirement pension from CPP is a monthly benefit based on how much, and for how long, you contributed to CPP over your working life. The pension is designed to replace about 25% of the earnings on which a person paid into the plan. CPP sets a maximum monthly benefit each year.
If you have contributed to CPP, you qualify to receive a retirement pension at age 65. A retirement pension may also be paid as early as age 60, provided you stop working. If you take CPP before age 65, your CPP pension is reduced by 6% for each year you are under age 65. Similarly, if you elect to start taking CPP later than age 65, the amount of your retirement pension is adjusted upwards by 6% for each year after the age of 65.
CPP Disability Pension
This is a monthly benefit consisting of both flat-rate and earnings-related components. The earnings-related component is equal to 75% of the CPP retirement entitlement, calculated as if the contributor became 65 years of age in the month when the disability pension became payable. At age 65, the total disability benefit is changed to the regular CPP retirement entitlement. For information on disability provisions, contact CPP.
CPP Survivor Pension
When you die, your eligible spouse is entitled to a survivor pension from CPP. For information on qualifications for this benefit, please contact CPP.