Canadians who choose to receive early CPP can also change their minds, up to 12 months after receiving the first payment. This requires paying back what you've received so far, but the choice is yours.
There are many reasons why people choose to receive CPP payments early, but personal finances can change dramatically at any time. It's comforting to know that the government understands this and allows recipients the opportunity to reverse their decision.
This article explains exactly when you can change your mind about early CPP, the pros and cons of taking it before age 65, and more.
Key Takeaways
- You can apply for CPP as early as age 60.
- Taking early CPP means a 0.6% reduction in monthly payments for every month before age 65.
- If you’ve been getting early CPP for less than 12 months, you can cancel it, repay the amount, and restart later.
When can you take early CPP?
You can apply for Canada Pension Plan benefits as early as age 60. These are considered early payments, and they come with a penalty. Your monthly amount will be reduced by 0.6% for every month you take CPP before age 65, totalling a maximum reduction of 36%.
If you wait until after age 65, your CPP payment increases by 0.7% for each month you delay, up to age 70. That gives you a maximum bonus of 42%.
After age 70, there’s no benefit to waiting.
Therefore, while age 60 is the earliest you can apply, you’ll want to weigh the tradeoff between receiving lower monthly payments vs. having the money sooner.
How to withdraw CPP early
Applying for early CPP is straightforward. You can start the process as early as 12 months before your desired start date.
Here’s what you need to do:
- Log into your My Service Canada Account
- Navigate to "Apply for CPP retirement pension"
- Choose your preferred start date
- Submit the application and wait for approval
While most prefer to apply online, you can also apply using a paper form.
Either way, you'll receive a decision via mail within 28 days of your application being received.
Can you change your mind about taking early CPP?
You can change your mind about receiving CPP payments early, but it's only possible to cancel them up to 12 months after you begin receiving them.
Here’s what you need to do:
- Contact Service Canada with a written request to cancel your pension
- Repay all CPP payments you’ve received so far
- Reapply when you're ready to restart later
After 12 months, you’re locked in. There’s no option to pause or cancel your CPP retirement pension after this.
Still, if your financial situation improves, consider contributing to a tax-free savings account (TFSA) or registered retirement savings plan (RRSP) with your CPP money. That can help make up for the reduced pension amount over time.
RRSPs
RRSPs are savings plans registered with the government. RRSPs can reduce your taxable income, as RRSP contributions are deducted from your annual taxable income, and the funds aren't taxed until you withdraw them.
- The RRSP contribution limit for 2025 is $32,490
TFSAs
TFSAs are savings accounts that generate tax-free interest. This means that any interest generated by these accounts is tax-free, even when the funds are withdrawn.
- The TFSA contribution limit for 2025 is $7,000
Pros and cons of taking early CPP
Taking early CPP is a personal decision. Here’s what to consider before applying:
| Pros | Cons |
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FAQ
Can I collect CPP at 55?
No, the earliest Canadians can begin collecting CPP retirement benefits is age 60. The earlier you start, the lower your payments will be. People typically begin receiving payments around age 65, but it's possible to wait until age 70.
How long before I turn 60 should I apply for CPP?
To receive CPP payments at age 60, you can apply up to 12 months before your 60th birthday. You'll receive a decision within 28 days of the application being filed and should receive payment shortly thereafter.
What is the early CPP amount?
If you take CPP early at age 60, your payments will be up to 36% less. The maximum payment amount is $1,433 per month (though the average is $899.67), so you'd receive $1,424.02 at best.
What is the maximum CPP payment per month?
At age 65, the maximum monthly CPP payment in 2025 is $1,433, which becomes $17,196 for the year. However, the average amount a 65-year-old Canadian receives is $899.67 per month or $10,796.04 per year.
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