Table 7 – Canada Pension Plan (2016)

Contributions
Maximum pensionable earnings $54,900
Basic exemption $3,500
Maximum contributory earnings $51,400
Employee and employer rate 4.95%
Maximum annual employee/employer contribution $2,544.30
Maximum annual self-employed contribution $5,088.60
Benefits
Maximum monthly pension:1
If starting at age 60
If starting at age 65
If starting at age 70
$699.20
$1,092.50
$1,551.35
Maximum single payment on death $2,500.00
Maximum monthly pension for surviving spouse or common-law partner:
Under 65 years of age
65 year of age and older
$593.62
$655.50
Maximum monthly disability pension $1,290.81

A person can elect to start receiving retirement bene ts as early as age 60 or as late as age 70. The pension amount is reduced before the age of 65 or increased after age 65 for each month between the bene ciary’s 65th birthday and the month the pension became payable. The early pension reduction for CPP taken before age 65 is 0.6% (or 7.2% per year) for each month that the pension was taken early. The late pension augmentation is 0.7% per month (or 8.4% per year) for each month that the pension is taken after an individual’s 65th birthday (see topic 13).