When should you apply for a retirement pension under the Québec Pension Plan?
The age at which you choose to begin receiving a retirement pension under the Québec Pension Plan (QPP) should be part of the financial planning for your retirement because it will affect your income for the rest of your life.
Public Consultation on the Québec Pension Plan
A proposition concerns workers aged 65 and over, who must currently contribute to the QPP. Another proposition concerns the age at which a person can apply for his or her retirement pension. Share your opinion by answering the questionnaire on the Québec Pension Plan no later than 17 February 2023. Find out about the Public Consultation.
The retirement pension under the Québec Pension Plan is:
-
guaranteed until death
-
protected from inflation
The retirement pension under the
QPP is paid until death. It will therefore be a source of income for the rest of your life, unlike your personal savings, which will eventually wear out. In addition, the amount of your retirement pension is indexed each year.
Higher income if you apply for it later
While it is possible for you to receive a retirement pension under the
QPP as at age 60, applying later may be to your advantage for several reasons.
If you apply for your retirement pension at age 60, the amount will be lower than if you postpone applying until age 65. And if you apply between ages 65 and 70, the amount will be even higher.
A helpful example...
If you were born in January 1970 and you stop working at age 60, for a yearly pension of $10 000 at age 60, see how your pension amount is different if you apply at an earlier or later time.
Variation in retirement pension amounts according to age —
2023
| Age | Pension amount | Increase in pension amount compared with a pension received as of age 60 |
|---|
| 60 | $10 000 | $0 |
|---|
| 61 | $11 124 | $1124 |
|---|
| 62 | $12 248 | $2248 |
|---|
| 63 | $13 371 | $3371 |
|---|
| 64 | $14 495 | $4495 |
|---|
| 65 |
$15 619 |
$5619 |
|---|
| 66 | $16 931 | $6931 |
|---|
| 67 | $18 243 | $8243 |
|---|
| 68 | $19 555 | $9555 |
|---|
| 69 | $20 867 | $10 867 |
|---|
| 70 | $22 179 | $12 179 |
|---|
The table shows that if you were born in January 1970, stopped working at age 60 and applied for your retirement pension at age 62, rather than at age 60, your pension would increase by $2248, which will be indexed annually for the rest of your life. By postponing your application to age 70, the value of your pension could be more than double.
To quickly calculate your retirement income,
use our SimulR tool.
Note that...
You can apply for a retirement pension and continue working.
Making the right decision
Before applying for a retirement pension under the Québec Pension Plan, you must take other personal factors into consideration to make sure that your retirement income will be sufficient during your entire retirement. For example, your state of health, your life expectancy, your savings and the effects of taxes on your income are factors that could justify applying for your pension earlier or at a later time. Learn more about those
personal factors and consult a financial planner, if necessary, to determine when the best time is to apply for your retirement pension.
You can also obtain an estimate of your pension amount under the
QPP between ages 60 and 70 using the participation data recorded in your name under the Québec Pension Plan, by using the
CompuPension or
SimulR tools. The amount of your retirement pension under the
QPP is estimated according to different scenarios and your age at retirement. These tools will also give you an estimate of the savings that you should accumulate in order to meet your needs in retirement.
Have you already carried out the financial planning for your retirement?
Payment of your pension is not automatic. If the time is right for you, you can
file an application for your retirement pension.