Most Canadians wait until 65 to take CPP, but starting to receive payments at age 60 can be a smart choice for those with shorter life expectancies, those who need the extra income, and those navigating other personal or financial circumstances.
Choosing to receive these payments at age 60 means you'll receive lower monthly benefit payments, but there are cases where that tradeoff makes sense. Your personal circumstances will dictate whether it's the right decision for you.
Here, you'll find some information to help determine whether early CPP is something you should consider.
How much CPP will you get at 60 vs. 65?
CPP payments are reduced by 0.6% for each month you take them before your 65th birthday.
If you begin receiving these benefits at age 60, this adds up to a 36% cut.
Here are what payments look like for new recipients in 2025:
| Age you begin receiving payments | Average monthly payment | Maximum monthly payment |
|---|---|---|
| 60 | $575.74 | $917.12 |
| 65 | $899.60 | $1,433.00 |
5 reasons to start taking CPP at 60
The monthly payout is smaller, but there are still reasons why someone might take CPP at 60.
1. You need the income now
If you decide to retire early, switch to part-time work, or just need more cash flow, CPP at 60 puts money in your hands sooner.
You’ll get less per month, but more total payments over time. If your financial plan for retirement relies on steady income starting at 60, CPP can fill that gap.
2. It can help you qualify for GIS later
Taking CPP earlier means you’ll have less taxable income at 65 and beyond, which can increase your chances of qualifying for the Guaranteed Income Supplement (GIS).
GIS is income-tested, so lower CPP payments can mean a higher GIS payout. This is especially helpful if you’re single and relying mainly on government programs in retirement.
3. Shortened life expectancy
CPP is a longevity-based system. If you live longer, you get more value from delaying.
But if you have ongoing health concerns or a family history of shorter life expectancy, it can make sense to take what you can while you're able.
You'll receive fewer dollars overall if you live into your 90s, but more if you don’t.
4. Your investments aren’t performing well
If the market’s down and your RRSPs or TFSAs have taken a hit, drawing CPP early may spare you from having to sell your investments at a loss.
In this case, CPP acts as a stabilizer for your income.
5. Previous years of low income
CPP is based on your earnings over 40 years, but you can drop out your lowest eight years.
If you didn't or aren't working from age 60 to 65, those years will count as $0 income unless you take CPP. This could lower your average income and reduce your future CPP even more.
But if you begin receiving payments at 60, you can avoid dragging down your benefit.
For more information, see CPP Retirement Pension: How Much You Could Receive.
How to apply for early CPP
Canadians can apply for CPP online, by mail, or in person at a Service Canada location.
Here are some details that you'll need to know:
- Eligibility: You must be at least 60 years old and have made at least one valid CPP contribution to qualify for CPP benefits.
- Timing: You don’t have to wait for your birthday. You can choose the month you'd like to begin receiving your CPP payments.
- Online applications: Use your My Service Canada Account (MSCA) to apply online. Processing usually takes 7 to 14 days.
When you're ready, you can apply here: CPP Retirement pension: Apply
FAQ
Do I get CPP if I never worked?
No, you can't have CPP if you've never worked. CPP is based on your contributions while working, so if you've never contributed through work or self-employment, you won’t receive CPP. You may still qualify for OAS or GIS.
Can I collect CPP at age 60 while working?
Yes, you can collect CPP while continuing to work. If you're under 65, you’ll still have to make CPP contributions, which will earn you post-retirement benefits (PRBs) and boost your future payments a small amount.
How many years do you have to work to receive the maximum CPP?
To receive the maximum CPP, Canadians usually need to work and contribute the annual maximum for 39 out of a possible 47-year contributory period. Most people don’t hit that mark and therefore don't receive the maximum amount.
What is the best age to take CPP?
If you’re healthy, have savings, and expect to live into your 80s or longer, delaying CPP to 65 or even 70 could pay off. But there are several reasons why beginning at age 60 might be right for you.
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