Money Retirement

CPP Payment Dates in 2020

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Last updated on July 28, 2020
cpp payment dates

QUICK ANSWER: Here are the CPP payment dates for 2020

January 29, 2020
February 26, 2020
March 27, 2020
April 28, 2020
May 27, 2020
June 26, 2020
July 29, 2020
August 27, 2020
September 28, 2020
October 28, 2020
November 26, 2020
December 22, 2020


Every month, retirees all across Canada rely on the Canadian Pension Plan (CPP) every month for guaranteed income after decades of hard work. One of three pillars in the Canadian retirement system, CPP payments are guaranteed to Canadians who contributed to the fund for at least 39 years before they turned 65.

While new retirees may look forward to their guaranteed payments for the rest of their lives, it’s important to plan your budget around the pay dates. Here’s the important CPP payment dates in 2020 you need to mark in your calendar.

What is the CPP?

The Canadian Pension Plan was founded in 1965, as a response to increasing poverty among retirees. Through negotiations between the provincial and federal government, the goal of the new entitlement program was to provide one-quarter of retired workers’ average lifetime salary.

While the program was originally funded through taxes, the CPP sustains itself today on income from multiple factors. The CPP runs on contributions from employers, employees, the self-employed, and earnings from investments.

How much you may receive from the CPP rides on several factors. Your monthly amount is based on when you start to collect from the pension, how long you contributed to the CPP over your working life, and your average salary when you were contributing to the CPP.

Can I Rely on the CPP For All My Retirement Expenses?

Although the CPP is guaranteed income for all qualified Canadians, it may not necessarily be enough to cover all of your expenses once you retire. According to the federal government, the maximum amount new retirees can receive at age 65 in 2020 is $1,175.83. However, what you may receive may be much lower: As of March 2020, the average retiree only earned $696.56.

Your personal situation may be different than the average. To see where you may stand at retirement, log in to your My Service Canada Account, or use the Canadian Income Retirement Calendar.

How much CPP will I get?

Essentially how much you get back depends on how much you’ve put in. It is based on things like your average lifelong earnings, how much you’ve contributed so far, how long you’ve been contributing.

CPP is paid out when you turn 65 years of age. You can begin taking out CPP when you’re 60 years old, but that reduces your pension by 36%. You lose 0.6% for every single month you accept payments early until your 65th birthday. Alternatively, if you delay your CPP payments, it will increase it by 0.7% every month until you reach your 70th birthday. That equates to a 42% increase in the amount of CPP you can receive.

Should I Also Invest in a Retirement Account?

The CPP is designed to only provide a basic level of financial comfort to Canadians. While it does provide guaranteed and secure income for the rest of your life, it may not be enough to live from.

Unless you already have another pension or retirement income source, it’s prudent to invest some of your money in a retirement account. The most common types of retirement accounts available are registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSA).

As the name suggests, a registered retirement savings plan is a contributory account, which may already be provided be your employer. Through an RRSP, you can put away pre-tax earnings towards your future. In addition, the earnings you gain through the RRSP are not taxed until they are withdrawn. When you start taking money from your RRSP after 65, your withdrawals will be taxed at the current rate.

The alternative to an RRSP is a tax-free savings account (TFSA). Any individual 18 years or older with a social insurance number can open a TFSA with a qualified financial institution. Unlike a RRSP, contributions to a TFSA are not tax deductible, and you are limited in contributions to your contribution room. If you put in more than your contribution room limit, you could be taxed for over-contributing.

Can I collect CPP and Other Sources of Retirement Funds?

When you reach retirement, there’s no greater freedom than being able to enjoy your years without worrying about your finances. Such is why the federal government created the CPP, as well as personal retirement accounts. With a combination of both CPP and your savings, you can rest assured that you can live in comfort well into your golden years.

Both RRSP and TFSA funds are dedicated savings with the goal of creating wealth you can draw from at retirement age. Through a blend of regular contributions, investment gains, and compounding interest, it’s entirely possible to grow a fund that will last the test of time. And because these types of savings are intended for the long term, it’s entirely possible – if not encouraged- to collect CPP payments with other sources of retirement funds.

The CPP Payment Dates in 2020

Like all other savings accounts, the CPP pays out once a month, towards the end.

January 29, 2020
February 26, 2020
March 27, 2020
April 28, 2020
May 27, 2020
June 26, 2020
July 29, 2020
August 27, 2020
September 28, 2020
October 28, 2020
November 26, 2020
December 22, 2020

Other payment dates, like old age security and veteran disability, may not necessarily pay out on the same dates. The calendar for all benefit payments can be found on the Government of Canada website.

Budgeting on a pension doesn’t have to be a chore. By planning around the CPP payment dates every month, you can determine how to make the most of your finances, and when to take any other retirement funds you may have.

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