Can I work and collect CPP at the same time?
By Krystian Urbanski, CIM, CIWM, FCSI, PFP · Chief Retirement Strategist, RetirementIQUpdated · 3 min read
Yes. You can start your CPP retirement pension and keep working; you do not need to stop or reduce your hours. If you are under 65 you must keep paying CPP contributions. From 65 to 70 contributions are optional. Contributions made while receiving CPP earn a Post-Retirement Benefit, an extra lifetime pension.
The rules
Since 2012 there is no work-cessation test: you can start CPP while working full time. What changes is your contributions:
- Under 65: if you work and receive CPP, you and your employer must keep contributing.
- 65 to 70: contributions are optional. You can elect to stop (employees use Form CPT30 with their employer).
- 70 and over: contributions stop automatically.
The Post-Retirement Benefit
Every year you contribute while receiving CPP earns a Post-Retirement Benefit (PRB), a separate lifetime monthly benefit that starts the following year and is indexed to inflation. In 2026 the maximum PRB earned for one year of contributions at 65 is $54.69 a month. PRBs stack: five years of contributions earn five PRBs.
Should you start CPP while still working?
Often not. CPP is taxable, so adding it to a full salary means it is taxed at your highest rate and may increase the OAS clawback after 65. If you do not need the income, waiting usually leaves you with a larger pension, paid in lower-tax years.
Daniel, 62, works full time earning $85,000 and starts a $750 monthly CPP. All $9,000 a year is taxed at his marginal rate, and he still pays CPP contributions. Those contributions earn him a small extra PRB from 63. Had he waited until he retired at 65, his CPP would have been about $960 a month for life, 28% more.
What to do next
- Estimate the tax on CPP at your current income.
- If you are 65 to 70 and still working, decide whether to keep contributing.
- Compare start ages with the CPP and OAS calculator.
Free tools that help
Related questions
Do I have to stop working to collect CPP at 60?
No. The requirement to stop or reduce work was removed in 2012. You can start CPP at 60 while working full time.
Does working reduce my CPP like it can with Social Security?
No. CPP has no earnings test. Your CPP is not reduced because you earn employment income.
Can I stop CPP contributions at 65 if I keep working?
Yes. Between 65 and 70, if you are receiving CPP, you can elect to stop contributing. Employees give their employer Form CPT30; self-employed people elect on their tax return.
Have a question we have not answered?
Send it in. The most common questions become new answers here and notes in Sunday Coffee with Krystian, the weekly email for Canadian retirees.