Canadians under the age of 70 who are receiving CPP payments can continue working and making contributions to their pension. These contributions will go toward a CPP post-retirement benefit (PRB), which increases the size of your monthly CPP payments for the rest of your life.
Before 2012, once a person started receiving CPP benefits, they could no longer contribute to the Canada Pension Plan. However, this changed when the CPP post-retirement benefits were introduced.
To qualify for CPP post-retirement benefits, a person must be between ages 60 and 70, working and contributing to CPP, and receiving their CPP pension.
We have all the details on the post-retirement benefit below.
Key Takeaways
- The CPP post retirement benefit is an extra benefit that is earned by Canadians ages 60 - 70, who are collecting CPP while still working and paying into the plan.
- The maximum amount of PRB is worth 1/40th or 2.5% of your maximum yearly retirement pension.
- PRB payments are issued monthly on top of your CPP payment, the year after you contribute.
- You may be eligible for multiple PRBs if you’ve worked several years into retirement, as each PRB is based on a single year of contributions.
What is the CPP post-retirement benefit?
The CPP post-retirement benefit is a lifetime benefit for employees in Canada who continue to work while receiving Canada Pension Plan payments. It's an opportunity for Canadian workers over the age of 60 who have chosen to take early CPP benefits to continue adding to their pension and increase the amount they receive once their working days are over.
People can choose to receive CPP payments as early as age 60 and as late as age 70, but the standard age to start receiving payments is 65 years old.
Workers aged 60 - 65 who are receiving CPP payments are required to keep paying into CPP, while those between the ages of 65 - 70 can choose whether they want to continue making CPP payments. After the age of 70, it’s no longer possible to contribute to the CPP.
Here’s a handy chart that lays out the CPP rules based on a person’s age.
| Age of worker | CPP rules |
|---|---|
| Under 60 | * Must contribute to CPP if working * Cannot begin receiving monthly CPP payments |
| Age 60 - 65 | * Must contribute to CPP if working * Can choose to receive CPP payments or delay them to age 70 |
| Age 65 - 70 | * Can choose whether to continue contributing to CPP * Can choose to receive CPP payments or delay them to age 70 |
| Age 70+ | * Can no longer contribute to CPP * Can delay CPP payments but with no financial benefit |
If you’re wondering what age to take CPP, we have some articles that may help you decide:
How much is the CPP post-retirement benefit?
The value of the CPP post-retirement benefit is based on the amount a person earned and contributed during the previous year, and their age on the first day of the year their PRB begins.
A new PRB is generated each year that a worker receiving CPP benefits contributes to their CPP, and that amount is added to the total income they receive from the CPP. This means that it’s possible for one person to receive more than one PRB at the same time.
To put it simply, the annual benefit you can receive from each of your PRBs is equal to 1/40th (or 2.5%) of the maximum CPP pension amount. While that number changes every year, in 2023 the maximum PRB for a 65-year-old who surpassed the CPP earnings limit and made the maximum amount of contributions the previous year is $40.25 per month.
This means, assuming your income remains above the maximum pensionable amount, you could earn an additional $40.25 per month for each year you worked past the time you began receiving CPP payments, on top of the CPP payments you would have received.
To help calculate your CPP pension and post-retirement benefit payments, see: Canadian Retirement Income Calculator.
Is the post-retirement benefit worth it?
Every situation is different so unfortunately there’s no right or wrong answer to the question of whether the CPP post-retirement benefit is worth it. However, continuing to contribute to the CPP after age 65 does make more sense for some individuals over others.
For example, workers between the ages of 65 - 70 whose monthly CPP payments are considerably less than the maximum amount ($1,306.57 in 2023) would be more likely to benefit from continuing to contribute to the CPP and build their post-retirement benefits.
But there are other things to keep in mind when working after you begin receiving CPP payments, including how your income will affect your OAS amounts, as well as more general physical and mental wellness considerations.
Are you retired and still working?
Are you a worker between the ages of 65 and 70 who is receiving CPP benefits? If so, have you chosen to continue paying into your CPP?
We’d love to hear your reasoning why or why not – please tell us in the comments below.
FAQ
Can I work while receiving CPP?
Yes. Residents of Canada who are under the age of 70 can still work and contribute to their CPP, even if they’re already receiving CPP benefits. These contributions can increase your pension in the form of post-retirement benefits.
Can I work while receiving CPP disability benefits?
Yes, you can work while receiving CPP disability benefits, but the amount you receive as a benefit could be reduced depending on your income. You’ll no longer qualify for disability benefits if you earn $18,508.36 annually.
When is the post-retirement benefit paid?
The PRB is paid monthly and is added to your regular CPP payment. You’ll start receiving your PBR the year after you contributed. First time payments may be delayed to allow for your employer’s contribution information to reach the CRA.
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