The amount of a retirement pension

The pension amount is calculated on the basis of:

  • the employment earnings recorded under the contributor's name since 1966, the year in which the Plan started
  • the contributor's age when pension payments begin

To better understand the variations in the amount of a retirement pension

The amount of a retirement pension is calculated on the basis of age: the amount is adjusted depending on whether payment begins before or after the 65th birthday.

  • At age 65, a pension is neither reduced nor increased. However, there will be a reduction if the person received a disability pension under the Plan after age 60.
  • Before age 65, a pension is reduced by 6% per year (0,5% for each month) preceding the 65th birthday.

    • For example, if a pension begins at age 63, it will be reduced by 12% (2 years × 6%). This reduction will apply for as long as the pension is paid.
  • After age 65, a pension is increased by 6% per year (0,5% for each month) between the 65th birthday and the time when payment of the pension begins.

    • For example, if a pension begins at age 68, it will be increased by 18% (3 years × 6%). This increase will apply for as long as the pension is paid.

Maximum retirement pension amounts payable for persons who begin receiving their pensions in 2012
Beneficiary's age Rate payable Maximum monthly amount
60 70% 690,67 $
61 76% 749,87 $
62 82% 809,07 $
63 88% 868,27 $
64 94% 927,47 $
65 100% 986,67 $
66 106% 1 045,87 $
67 112% 1 105,07 $
68 118% 1 164,27 $
69 124% 1 223,47 $
70 or over
130% 1 282,67 $

Between the ages of 60 and 70, the amount varies according to the month in which payment of the pension begins.

Changes to the actuarial adjustment factor for retirement pensions

Before age 65

If a retirement pension starts being paid before age 65, it is currently reduced by 0,5% for each month included between the time payment begins and age 65. As of 1 January 2014, the actuarial adjustment factor will vary between 0,5% and 0,6% and increase progressively between 2014 and 2016. The actuarial adjustment factor will increase proportionally to the amount of the pension, remaining at 0,5% for a person who receives a very low pension, but gradually increasing to 0,6% for a person who receives a maximum pension. Contributors who were born before 1 January 1954 will not be affected by these changes.

After age 65

If a retirement pension starts being paid after age 65, the amount is currently increased by 0,5% for each month included between the age of 65 and the month in which the payment of the pension under the Québec Pension Plan begins, up until age 70. This rate will increase to 0,7% a month as of January 2013.


Important...
  • A retirement pension is taxable.
  • It is adjusted in January each year to reflect increases in the cost of living.
  • It is possible to save on the income tax payable on your pension.
  • The Régie can deduct income tax at source. The beneficiary simply indicates the amount to be deducted.


Statement of Participation in the Québec Pension Plan

Every 4 years, the Régie mails a Statement of Participation in the Québec Pension Plan to all contributors. It can also be consulted at any time online.

CompuPension

Tool for estimating your retirement income

It's free, intelligent and innovative. CompuPension is an effective and useful tool for knowing about the income sources that you will have after retirement.

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