CPP pension by start age.
At age 60 (-36%)
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At age 65 (standard)
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At age 70 (+42%)
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Worked example
Suppose Service Canada estimates your CPP at the standard age of 65 to be $1,200 a month. Starting early reduces the pension by 0.6 percent for every month before 65, which is 7.2 percent a year. Taking it at 60 is 60 months early, a 36 percent cut, so $1,200 becomes $768 a month, or $9,216 a year. Deferring increases the pension by 0.7 percent for every month after 65, which is 8.4 percent a year. Waiting until 70 is 60 months late, a 42 percent boost, lifting $1,200 to $1,704 a month, or $20,448 a year. The same lifetime contributions can therefore produce a monthly cheque that more than doubles between the earliest and latest start ages.
| Start age | Adjustment | Monthly | Annual |
|---|---|---|---|
| 60 | -36% | $768 | $9,216 |
| 65 (standard) | 0% | $1,200 | $14,400 |
| 70 | +42% | $1,704 | $20,448 |
How it is calculated
The tool starts from your age-65 estimate, which is the unreduced standard amount based on your contribution history and average pensionable earnings. From there it applies a flat percentage adjustment per month away from 65. Early retirement carries a permanent reduction of 0.6 percent per month, up to 36 percent at age 60. Late retirement adds a permanent increase of 0.7 percent per month, up to 42 percent at age 70, after which there is no further gain. These factors are fixed in legislation and the change is permanent for life, not just a temporary penalty or bonus. The mathematical breakeven for starting at 60 versus 65 lands around age 73, and for 70 versus 65 around 82, so longevity and other income usually matter more than the arithmetic.