CPP (Canada Pension Plan)
A government retirement benefit funded by contributions made during your working years.
Last reviewed May 20, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
The Canada Pension Plan is a government-run retirement benefit funded by contributions deducted from your paycheque throughout your working life. The amount you eventually receive depends on how much and how long you contributed.
Why it matters
It's a guaranteed, inflation-adjusted income stream for life — a foundation most retirement plans build on top of, not around.
Common misunderstandings
- It's not the same as OAS — CPP is earnings-based, OAS is residency-based.
- You can start collecting as early as 60 or as late as 70, and the amount changes significantly depending on when you start.
Where you'll see it
In every retirement income conversation, alongside OAS and personal savings.
Related terms
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