Canada Pension Plan payments for January go out soon — Here's how much you can get
The first payment of 2025 is almost here!
Canadian seniors can get over $1,000 a month from the CPP — and it's paying out early this month.
January is already more than halfway over, but there are still some more government benefits Canadians can get this month — including the much-anticipated Canada Pension Plan (CPP) payment set to roll out soon.
With rising prices making everything from rent to groceries a stretch, these government payments can be a lifeline for Canadian seniors who rely on pension payments like the CPP and Old Age Security to stay on top of their monthly budgets. From tackling daily expenses to covering post-holiday costs, these federal benefits from the Canada Revenue Agency offer critical support.
For retirees across Canada, the CPP provides a steady stream of taxable income each month to help manage life's many expenses. The January 2025 CPP payment is just around the corner, and we've got all the details — from how much you could receive to who qualifies.
How does the Canada Pension Plan work?
The Canada Pension Plan (CPP) is designed to provide a monthly taxable income to help replace part of your earnings after retirement. You can choose to start receiving payments as early as age 60, or hold off — the longer you wait, the larger your monthly payments will be. That said, there's no extra boost if you delay past age 70.
Once you begin collecting your CPP, the amount you get is set for life, with annual adjustments to keep pace with inflation. Payments can be deposited directly into your bank account every month, making it super simple to manage.
Who is eligible for the Canada Pension Plan?
To be eligible for the CPP retirement pension, you need to be at least 60 years old and have made at least one contribution to the plan. Contributions are typically tied to your work in Canada, although in certain situations, credits can be divided after separating from a former spouse or common-law partner.
The CPP also offers flexibility — you can continue working while collecting your pension. Plus, if you're under 70 and still on the job, you could boost your payments through the CPP post-retirement benefit.
How to apply for the Canada Pension Plan
Applying for the Canada Pension Plan (CPP) is a simple process, but the timing is important. The first step is deciding when you'd like your payments to start. You can begin any time between ages 60 and 70, with a key trade-off — the longer you delay, the higher your monthly payment will be.
When you're ready to apply, you can do it online through your My Service Canada Account, or you can fill out a paper application and send it by mail or drop it off at a Service Canada centre.
More about applying for CPP
Does Quebec have its own pension plan?
Quebec operates its own retirement system called the Quebec Pension Plan (QPP), which functions similarly to the Canada Pension Plan (CPP).
If you've worked only in Quebec, or you currently live there and spent part of your career in the province, your benefits will come from the QPP instead of the CPP. The two systems are interconnected, so if you've worked in Quebec and other provinces, your contributions are combined to determine your total pension amount.
Just like the CPP, QPP payments are issued monthly, and this month's deposit is set for January 31.
How is the Canada Pension Plan calculated?
The amount you receive from the Canada Pension Plan (CPP) is based on several factors, including:
- When you start your payments — Delaying past age 60 (up to 70) can lead to larger monthly payouts.
- Your contributions — The amount you paid into the plan and how long you contributed play a big role.
- Your earnings — Higher lifetime earnings typically result in bigger CPP payments.
If you're under 70 and still working while collecting CPP, you can increase your pension with the CPP post-retirement benefit. Each year you contribute adds more to your payments, which are automatically added to your pension the following year — and they're paid for life.
Other circumstances, like times of low income, raising kids or living with a disability, can also influence your payment. To get a clearer picture of your expected benefits, log in to your My Service Canada Account or try the CRA's Retirement Income Calculator.
More about calculating CPP payments
How much does the Canada Pension Plan pay?
The amount you receive from the Canada Pension Plan (CPP) depends on several factors, like your age, how much you’ve contributed during your career and your average earnings while working.
For January 2025, the maximum monthly payout for someone starting CPP at age 65 is $1,433, according to the CRA. However, most people get less — the average payment for a new retiree at 65 is around $808 per month.
Your exact amount will depend on your unique situation. To get an estimate tailored to you, log in to your My Service Canada Account or use the CRA's Retirement Income Calculator.
More about CPP payment amounts
Is the Canada Pension Plan taxable?
Yes, Canada Pension Plan (CPP) payments are taxable income. While taxes aren't deducted automatically, you can choose to set up monthly federal tax deductions through your My Service Canada Account or by submitting a paper form.
If you don't arrange for monthly deductions, you might need to pay taxes quarterly instead. For Canadians living abroad, a non-resident tax is automatically applied to CPP payments.
More about CPP and your taxes
When are the Canada Pension Plan payment dates?
CPP payments typically arrive during the last week of the month, with this month's deposit scheduled for Wednesday, January 29.
Here's a full breakdown of the rest of the CPP payment dates for 2025:
- February 26, 2025
- March 27, 2025
- April 28, 2025
- May 28, 2025
- June 26, 2025
- July 29, 2025
- August 27, 2025
- September 25, 2025
- October 29, 2025
- November 26, 2025
- December 22, 2025
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