Estimate Your Retirement Benefits
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2026 maximum pensionable earnings: $71,300
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Full OAS requires 40 years of Canadian residency after age 18
How to Use This Calculator
- Enter your current age. This sets the timeframe for the projection, not the benefit amount — CPP depends on contributions, not on how old you are now.
- Enter the age you started working. This drives the contributory period. CPP uses the years from age 18 to when you start your pension, less an eight-year dropout for your lowest-earning years, capped at 39 credited years.
- Enter your average annual employment income. CPP is based on your earnings relative to the Year's Maximum Pensionable Earnings. Income above the ceiling does not increase your base pension — enter your typical career average, not your best year.
- Enter your years of Canadian residency if you are also estimating OAS. OAS is residency-based, not contribution-based: 40 years after age 18 earns the full pension, 20 years earns half.
- Read the three CPP scenarios. They show the same pension started at 60, 65 and 70, after the early-takeup reduction or the deferral increase.
- Compare the combined figures. CPP plus OAS is your actual retirement income from government sources. Note that OAS is not available until 65.
- Check the breakeven analysis to see how long you would need to live for deferring to 70 to pay off, compared with taking CPP at 60.
This assumes a full contributory career. If you have gaps in your contribution history, your actual CPP will be lower. Verify at My Service Canada Account.
Understanding CPP & OAS
Canada's retirement income system has two main pillars: the Canada Pension Plan (CPP) and Old Age Security (OAS). Together, they provide a foundation for retirement income for Canadians.
Canada Pension Plan (CPP)
CPP is a contributory pension. You and your employer contribute throughout your working life (employee rate: 5.95% on pensionable earnings up to $74,600 in 2026, plus 4% CPP2 on earnings above that first ceiling). Your CPP benefit is based on the contributions you made and the years you contributed. Benefits can start as early as age 60 or be deferred up to age 70.
Old Age Security (OAS)
OAS is a residency-based benefit paid from general government tax revenue. You don't need to have contributed anythingβyou only need to have been a Canadian resident for 40 years after age 18. OAS normally starts at age 65 but can be deferred up to age 70 for a higher amount. It's subject to a "clawback" if your income exceeds approximately $93,454.
2026 Maximum Benefits
- CPP at 65: Maximum $1,364.60/month (assumes 39 years of maximum contributions)
- OAS at 65: Maximum $698.60/month (full amount for those with 40+ years residency)
- Combined maximum: Approximately $2,259.62/month (before clawback)
These amounts are indexed annually to inflation (CPI).
Canadian Example (2026)
Scenario: Age 62, planned retirement at 65, average income $72,000/year for 35 years, 40 years Canadian residency
CPP at 65: ~$1,050/month
Taking CPP at 60 instead: ~$756/month (28% reduction β 0.6%/month Γ 60 months)
Taking CPP at 70: ~$1,491/month (42% increase β 0.7%/month Γ 60 months)
OAS at 65: $698.60/month (full rate for 40 years residency)
Combined at 65: ~$1,749/month before tax
Breakeven age (taking CPP at 70 vs 65): approximately age 82
CPP at 65: ~$1,050/month
Taking CPP at 60 instead: ~$756/month (28% reduction β 0.6%/month Γ 60 months)
Taking CPP at 70: ~$1,491/month (42% increase β 0.7%/month Γ 60 months)
OAS at 65: $698.60/month (full rate for 40 years residency)
Combined at 65: ~$1,749/month before tax
Breakeven age (taking CPP at 70 vs 65): approximately age 82
When Should You Take CPP & OAS?
The Breakeven Analysis
If you take CPP at 60, you collect for 5 extra years before age 65, but at 64% of the age-65 rate. If you wait until 70, you collect 42% more per month, but you've missed 5 years of payments. The crossover pointβwhere taking at 70 catches up in total dollars receivedβis typically around age 82β84. After that age, you're ahead by taking it late.
Take CPP at 60 If:
- You have health concerns or family history of early mortality
- You need the income and can't wait
- You want to enjoy the money while young and active
- You have other reliable income sources (RRSP, savings)
Take CPP at 65 If:
- You're in average health and expect to live into your 80s
- You have a balanced approach and want to retire then
- You have moderate other income sources
Defer CPP to 70 If:
- You're in good health and expect to live past 85
- You have other income sources (employment, pensions, investments)
- You want to maximise lifetime income
- You believe CPP rates may be reduced in future (unlikely but possible)
OAS Strategy
OAS can be taken as early as 65 or deferred to 70. Deferring increases your OAS by 0.6% per month (7.2% per year), up to 42% more at age 70. Apply for OAS 6 months before you want it to start to allow processing time.
Frequently Asked Questions
What is the maximum CPP payment in 2026?
The maximum monthly CPP at age 65 in 2026 is approximately $1,364.60. This assumes you: (1) earned at least the maximum pensionable earnings ($71,300 for 2026) for 39 years, (2) started contributing at a young age, and (3) took CPP at age 65. If you take it at 60, the maximum is about 36% less (~$874). If you take it at 70, it's about 42% more (~$1,937).
Can I collect CPP before age 65?
Yes, CPP can be taken as early as age 60. However, your monthly payment is reduced by 0.6% for each month you take it before age 65, up to a maximum 36% reduction (60 months Γ 0.6%). For example, taking CPP at 60 gives you approximately 64% of your age-65 benefit. Conversely, delaying to 70 increases your benefit by 42%.
What is the OAS clawback and how does it work?
OAS has an income clawback: if your net income exceeds approximately $93,454 (2026, indexed annually), you must repay 15Β’ of OAS for every dollar above that threshold. For example, if you have $120,000 in income, you'd repay $3,981.90 in OAS (15% Γ $26,546). High-income retirees can lose all their OAS if income exceeds approximately $147,000. This makes income-splitting strategies (spousal RRSPs, spousal pensions) valuable for high-income households.
Should I take CPP at 60, 65, or 70?
It depends on your health, other income, and longevity expectations:
Take at 60 if you're in poor health, need income now, or expect mortality before 82.
Take at 65 if you're in average health, expect to live into your 80s, or want a balanced approach.
Defer to 70 if you're in good health, have other income sources, and expect to live past 85.
The breakeven point is typically age 82β84. If you live longer than that, deferring to 70 pays off in lifetime dollars.
Take at 60 if you're in poor health, need income now, or expect mortality before 82.
Take at 65 if you're in average health, expect to live into your 80s, or want a balanced approach.
Defer to 70 if you're in good health, have other income sources, and expect to live past 85.
The breakeven point is typically age 82β84. If you live longer than that, deferring to 70 pays off in lifetime dollars.
Does CPP continue to my spouse after I die?
Yes, your spouse is eligible for a Survivor Benefit if you were receiving CPP or met the contribution requirements. The amount depends on their age at your death and their own CPP eligibility. Children under 18 (or 19 if in school) are also eligible for Children's Benefits. However, once a survivor benefit is claimed, the original CPP payments stopβthe survivor doesn't receive both. For couples, spousal RRSPs and income-splitting strategies are often used to maximise surviving spouse benefits.
How many years do I need to live in Canada to get full OAS?
You need 40 years of Canadian residency after age 18 to receive full OAS. If you have fewer than 40 years, OAS is reduced proportionately. For example, 20 years of residency qualifies you for 50% of the maximum OAS. OAS years accumulate only during years you're a Canadian resident (not while living abroad), but once you reach 40 years, you're locked in for the maximum even if you move away.
Are CPP and OAS payments taxable?
Yes, both CPP and OAS are fully taxable income. If CPP and OAS are your only income, you'll owe some tax because you exceed your basic personal amount. However, CPP and OAS can be split with your spouse (up to 50% in some cases), which reduces the tax burden for high-income spouses. For low-income retirees, the Guaranteed Income Supplement (GIS) can top up OAS to a higher level based on income.
Tips for Retirement Planning
Delay CPP to 70 if you're healthy and have other income
The 42% increase is a guaranteed raise for life. If you live past 82, you'll have received more in total dollars. This is especially valuable in a low-interest-rate environment where investment returns are modest.
The 42% increase is a guaranteed raise for life. If you live past 82, you'll have received more in total dollars. This is especially valuable in a low-interest-rate environment where investment returns are modest.
Apply for OAS 6 months before you want it to start
Processing takes time. Applications can take 4β6 months. If you miss the start date, you can apply retroactively for up to 12 months of back payments, but it's better to plan ahead.
Processing takes time. Applications can take 4β6 months. If you miss the start date, you can apply retroactively for up to 12 months of back payments, but it's better to plan ahead.
Consider the Guaranteed Income Supplement (GIS) if low-income
If your OAS is your main income and you have little else, you may qualify for GIS, which tops up OAS to about $1,300/month (2026). You must applyβit's not automatic. Check eligibility at canada.ca.
If your OAS is your main income and you have little else, you may qualify for GIS, which tops up OAS to about $1,300/month (2026). You must applyβit's not automatic. Check eligibility at canada.ca.
CPP and OAS both adjust for inflation annually
Payments are indexed to the Consumer Price Index (CPI) each January. This protects you from inflation over decades of retirement, unlike fixed pensions.
Payments are indexed to the Consumer Price Index (CPI) each January. This protects you from inflation over decades of retirement, unlike fixed pensions.
Related Tools
Once you understand your CPP & OAS picture, explore these related calculators:
Disclaimer: This calculator is for educational and estimation purposes only. Actual CPP and OAS benefits depend on your complete contribution history (for CPP) or residency history (for OAS). The CPP estimate assumes a full contributory career (the maximum 39 credited years) - if you have gaps in your contribution history your actual pension will be lower. Figures used are the January 2026 maximum CPP at 65 ($1,507.65) and the July-September 2026 maximum OAS ($751.97). The real benefit is calculated by Service Canada. For your exact projected benefit, log into My Service Canada Account at canada.ca. This information does not constitute financial or retirement planning advice. Consult a financial adviser or Service Canada for your specific situation.