The CPP Post-Retirement Benefit changes the way Canadians use the CPP while still working after age 60. This federal program started in 2012 and lets people receive their CPP retirement benefits even as they earn more pension credits.
For Canadians aged 65-70 who continue working, the PRB creates a unique decision point between immediate income and long-term pension growth. Understanding PRB mechanics determines whether you’ll maximize your retirement income or leave money on the table.
What is the CPP Post-Retirement Benefit (PRB)?
The Post-Retirement Benefit is an additional CPP payment you earn by working while collecting your regular CPP pension. Each year you contribute to the Canada Pension Plan after starting your retirement benefits, a new PRB payment is generated. These payments stack on top of your existing CPP, even if you already receive the maximum pension amount.
The program serves Canadians who blur traditional retirement lines. Before 2012, starting CPP meant stopping contributions entirely. Now, workers aged 60-70 who collect CPP can build additional pension income through continued employment.
Who is eligible for the CPP Post-Retirement Benefit?
You may qualify for the CPP Post Retirement Benefit (PRB) if you:
- Are between 60 and 70 years old
- Are already receiving a CPP retirement pension
- Continue to earn employment or self‑employment income
For workers under 65, CPP contributions are mandatory while you are employed. If you are 65 or older, you can choose to stop contributing by submitting form CPT30 to the Canada Revenue Agency.
If you work in Quebec, your contributions go to the QPP, not the CPP. Therefore, you do not accumulate CPP PRB on that income. Instead, if you are already receiving a CPP retirement pension and start working in Quebec, you may be eligible to receive a retirement pension supplement from the QPP, which has its own set of rules.
Self‑employed individuals also qualify but face higher costs because they must pay both the employee and employer portions of CPP contributions. This effectively doubles the amount they contribute for the same PRB benefit.
How does the CPP Post-Retirement Benefit work?
Post-Retirement Benefit payments begin automatically in January following each year you contribute while receiving CPP.
Your employer deducts CPP contributions from your paycheque if you’re between 60 and 65, or optionally from 65 to 70. These contributions generate a new CPP PRB that depends on the following four factors:
- Your annual earnings determine contribution amounts
- Your age on January 1st affects the benefit size
- Each CPP PRB payment continues monthly for life
- Multiple PRBs stack together over the working years
A person working from 65 to 70 accumulates five distinct PRB amounts. These stack permanently onto your base CPP pension. The total benefit continues for life with full inflation protection.
How much CPP Post-Retirement Benefit will I receive?
The maximum Post-Retirement Benefit amount changes annually. According to the Government of Canada, the maximum new monthly PRB for an individual at age 65 in 2026 is $54.69. This figure is based on having made the maximum possible CPP contributions on eligible earnings throughout 2025.
Your actual CPP Post-Retirement Benefit depends on two factors:
- Earnings and contributions: Your benefit is directly proportional to the contributions you made in the previous year. Higher earnings generate larger benefits proportionally. For example, contributing half the maximum creates half the maximum CPP PRB. Part-time workers receive reduced benefits matching their contribution levels.
- Age factor: The amount of each Post-Retirement Benefit is adjusted based on your age when the benefit begins. CPP PRB amounts increase 0.7% monthly after age 65 and decrease 0.6% monthly before 65. This mirrors the standard age adjustments for the main CPP retirement pension.
What Factors Determine PRB vs CPP Deferral Decisions?
Deciding whether to take PRB or delay CPP depends on looking at your own situation. Financial advisors suggest considering three important factors:
Health and longevity expectations
Delaying CPP until age 70 raises monthly payments by 42%. This option works well for people who think they will live longer. PRB is better for those who want more money now, especially if they are unsure about their health.
Contribution history gaps
Workers with incomplete CPP records benefit more from deferral. Additional working years can replace low-earning periods in pension calculations. Those with 39+ maximum contribution years gain little from deferral contributions.
Employment stability
PRB requires continued work and earnings. Uncertain employment prospects favour starting CPP without PRB commitments. Stable employment through age 70 supports either strategy.
The Government of Canada offers the Canadian Retirement Income Calculator (CRIC), a valuable tool for this purpose. When planning, consider the following questions:
- When would waiting for a bigger CPP payment pay off more in the long run?
- If you’ve already paid the maximum into CPP, is taking it at 65 plus the extra PRB a better deal for you?
- What if you choose a middle-ground option, like waiting only until age 67 or 68?
What Happens to CPP PRB Upon Death or Disability?
CPP Post-Retirement Benefit follows different rules than regular CPP benefits for survivors and credit splitting. According to CPP legislation, four important limitations include:
- No survivor benefits: PRB payments stop when someone dies and do not go to their spouse. Only the basic CPP retirement pension provides benefits for the surviving spouse. The spouse cannot receive the PRB payments after the person passes away.
- No pension sharing or tax splitting: This is a common point of confusion. The PRB cannot be shared or split in the following ways:
- CPP Pension Sharing: This is a specific Service Canada program that allows spouses or common-law partners to share their basic CPP retirement pensions. The PRB is not eligible for this program.
- Tax Income Splitting: This is a Canada Revenue Agency (CRA) rule that allows you to split eligible pension income with a spouse to lower your combined taxes. CPP and QPP payments, including the PRB, are not considered eligible income for this purpose.
- No credit splitting: Divorced spouses cannot divide PRB credits. Credit splitting covers only pre-retirement contributions.
- Disability considerations: Workers under 65 receiving PRB may qualify for Post-Retirement Disability Benefits if they become disabled. This adds $598.49 (2025 average) until age 65 (Source).
While the PRB offers valuable lifetime income for working retirees, it provides no survivor, spousal sharing, or credit splitting benefits, and is generally non-transferable, with limited exceptions only in cases of disability before age 65.
How does PRB affect my retirement planning?
The CPP Post‑Retirement Benefit (PRB) influences retirement planning in four ways:
Changes to Income Projections
Traditional retirement planning assumes CPP income stays fixed once you start receiving it. With PRB, your CPP income continues to grow throughout your 60s, which may affect withdrawal strategies and long‑term tax planning.
Tax Implications
PRB permanently increases your taxable income. For higher‑income retirees, this could trigger OAS clawbacks earlier. Be sure to factor in the tax cost of PRB when deciding whether to keep contributing.
Limited Estate Benefits
Unlike RRSPs, CPP PRB does not offer extra survivor benefits beyond standard CPP provisions. Spousal pension rules apply to the combined CPP and PRB amounts. Decisions about PRB should focus on your own longevity rather than inheritance goals.
Cash Flow Flexibility
Deferring CPP typically requires other income sources to cover living costs. PRB, however, lets you start CPP right away while still adding growth potential for future income. This can be particularly useful for those with limited retirement savings who need early cash flow.
How Does CPP Post‑Retirement Benefit Impact Other Government Benefits?
CPP Post‑Retirement Benefit can raise the total amount of money someone gets when they retire, which might change how much support they get from programs that depend on income.
Because it increases your overall annual income, it can also affect your eligibility for other income-tested government benefits. According to Service Canada, the main effects are:
Old Age Security (OAS)
One of the most significant impacts is on your Old Age Security (OAS). This is due to a rule officially called the “OAS Recovery Tax,” but more commonly known as the “OAS clawback.”
Essentially, if your net income for the year goes above a specific limit, you have to pay back some of your OAS. The PRB is added to your net income, which can push you over this limit.
- The income limit changes every year, so you need to use the correct figure for the current tax year. As an example, for the 2025 tax year, the repayment threshold is $93,454. For every dollar of income you have above that amount, your OAS benefit is reduced by 15 cents. (Source)
- Always check the Canada.ca website for the current year’s OAS recovery tax threshold to see if you might be affected.
Guaranteed Income Supplement (GIS)
Guaranteed Income Supplement (GIS) is a benefit designed for low-income seniors, so it is very sensitive to changes in income.
Since the PRB increases your taxable income, it can affect your eligibility for GIS or reduce the amount you receive. The actual impact on your GIS payments is complex and depends on your total annual income and your family situation.
Provincial and Territorial Programs
Many of these benefits are also based on your income, including:
- Prescription drug plans
- Property tax deferrals or credits
- Housing subsidies
- Other supplemental benefits for seniors
Your PRB income will be counted when these governments determine your eligibility. Because the rules and income limits vary widely from one province to another, you will need to check directly with your provincial or territorial government.
The Bottom Line
Canada Pension Plan Post-Retirement Benefit gives you a chance to boost your retirement savings even if you keep working. The recent changes to the Canada Pension Plan mean there’s more money available than before.
Whether this option is right for you depends on your personal situation, so it’s important to understand your choices so you can get the most out of your retirement income.
Keep in mind that once you turn 65, you can still change your plan if your life circumstances change.
FAQs about CPP Post-Retirement Benefit
Do I need to apply for CPP PRB?
No application is required. Service Canada automatically calculates and adds PRB based on your contributions while receiving CPP.
How is CPP Post-Retirement Benefit taxed?
The CPP Post-Retirement Benefit is considered taxable income. It is added to your other CPP payments and reported together on your T4A(P) tax slip.
Regarding pension splitting, please note that unlike some other forms of retirement income, CPP benefits cannot be split with your spouse or common-law partner to lower your taxes.
Does CPP Post-Retirement Benefit affect other government benefits?
PRB counts toward income-tested benefit calculations. Higher total CPP might reduce GIS eligibility or trigger OAS clawback.
Where does my CPP Post-Retirement Benefit payment come from?
CPP PRB integrates into your regular monthly CPP deposit. You won't receive separate payments.
What happens to my CPP Post-Retirement Benefit if I stop working?
Earned CPP PRB continues for life. Stopping work only prevents future PRB accumulation.
Can I receive CPP Post-Retirement Benefits if I'm already getting maximum CPP?
Yes. The PRB is paid in addition to your CPP retirement pension, even if you’re already at the maximum.
Think of it as earning a collection of small, separate lifetime pensions. For each additional year you work and contribute, you earn a new PRB that gets added to your total monthly payment. You can keep stacking these new benefits on top of your pension each year until you turn 70.
When do CPP Post-Retirement Benefit payments actually start?
January 1st following your contribution year. First deposits typically arrive in April–June with retroactive amounts.
Is there a deadline to decide about CPP Post-Retirement Benefits?
No deadline, but key ages matter. At 65, you can opt out of contributions. At 70, all contributions stop automatically.
