Retirement guide

CPP Post-Retirement Benefit

An employee comparison of continuing CPP contributions after 65 versus electing to stop.

Worked exampleAge 652026 employee
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Scenario: At 65, receive CPP of $1,032 per month, continue working at $122,000 per year, and compare one more year of contributions with electing to stop.

The two choices

Continue contributingStop contributing
CPP already received$1,032/month$1,032/month
Employment income$122,000/year$122,000/year
2026 employee CPP$4,646.45$0 after election
Employer CPP$4,646.45$0 after election
New PRBYes, normally in 2027No

The employee contribution comprises $4,230.45 of regular CPP plus $416 of additional upper-band CPP (sometimes called CPP2). CPP2 is not a separate cheque.

Option 1: continue for one year

You keep receiving existing CPP while $4,646.45 is deducted from employment income. Using the published 2026 maximum PRB at age 65—$54.69 per month—only as a benchmark, combined CPP could be about $1,086.69 per month before tax and future indexing. Service Canada determines the actual 2027 PRB.

Employment incomeEmployee CPPIllustrative PRBIllustrative CPP after PRB
$20,000$981.75$12.69$1,044.69
$40,000$2,171.75$28.08$1,060.08
$60,000$3,361.75$43.46$1,075.46
$74,600$4,230.45$54.69$1,086.69
$85,000 or $122,000$4,646.45$54.69$1,086.69

This simplified table estimates PRB proportionally up to $74,600 and does not separately assign a PRB amount to upper-band contributions. Enhancement rules, indexing, age, and the applicable 2027 rate may change the result.

Option 2: stop at 65

You keep receiving the existing $1,032 monthly CPP and keep working, but stop deductions after the election takes effect. At the maximum contribution level, near-term cash flow improves by up to $4,646.45 for a full year, but no PRB is earned for that period.

An employee age 65 to under 70 who is already receiving CPP generally completes CRA Form CPT30, gives a copy to the employer, and sends the original to CRA. Contributions stop automatically at 70.

Simple break-even

An illustrative $54.69 monthly PRB equals $656.28 annually. Dividing the $4,646.45 contribution by $656.28 gives a before-tax break-even of about 7.1 years after the PRB begins—roughly age 73 if it begins around 66.

Stopping improves cash flow now. Continuing exchanges current cash for an indexed, taxable, lifetime CPP increase. Taxes, contribution deductions/credits, indexing, and the actual Service Canada calculation change the precise result.

Official sources to confirm

The $54.69 PRB is a published 2026 benchmark, not a guaranteed 2027 amount. Confirm your estimate through My Service Canada Account or Service Canada before electing.