What you need to know before applying for your retirement pension paid under the Québec Pension Plan
When to apply?
The amount of a retirement pension under the Québec pension Plan depends on your age when you begin receiving your retirement pension, the number of years you contributed to the Plan and the employment earnings on which you contributed. It is adjusted according to whether payment of your pension begins before or after your 65th birthday. The age at which you begin receiving your retirement pension will determine the amount of your pension for as long as it is paid to you.
To make an informed choice, you need to consider a wide array of factors, such as:
- your income (employment, private pension plan, personal savings, etc.)
- the adjustment factor applied to your pension based on your age and the amount of your pension
- how your retirement pension under the Plan may affect benefits under other programs
- your life expectancy
- payment of a surviving spouse's pension.
A financial planner can help you choose the best time to begin receiving your pension, depending on your financial resources and overall needs.
To simulate your retirement income, use our SimulR and CompuPension tools.
Amount of the retirement pension varies
From age 60 to 70, the amount of your retirement pension can vary depending on the month in which payment begins. The impact that date has on your pension is explained below.
The retirement age under the Québec Pension Plan is 65. However, a retirement pension can be paid as of age 60. The amount is calculated based on the contributor's age when payment of the pension begins and varies according to the employment earnings on which the person contributed to the Plan as well as the number of years of contribution.
Variation in the pension amount according to the age at which payment begins
The pension amount varies depending on whether payment begins before or after age 65. Thus, the pension amount is reduced if payment begins before age 65 and is increased if payment begins after age 65. The adjustment factor that is determined according to the contributor's age when payment begins applies for as long as the retirement pension is paid.
If you are under age 65, your pension will be reduced for each month between the start of payment and your 65th birthday. The reduction factor will be 0.5% a month if your pension is very small and will be up to 0.6% if you are receiving the maximum pension.
The table below gives the applicable reduction factors that will be applied gradually as a result of the amendments made to the Act respecting the Québec Pension Plan.
Applicable reduction factors according to the year the pension starts
Year pension starts
|
Minimum
reduction factor |
Maximum
reduction factor |
| 2023 and later |
0.5% a month |
0.6% a month |
The reduction factor will remain 0.5% if you are receiving a very small pension and increase to a maximum of 0.6% if you are receiving the maximum pension.
If you are age 65 or over, the pension will be increased by 0.7% for each month following your 65th birthday, to a maximum of 42% at age 70.
Maximum retirement pension amounts payable for persons who begin receiving their pensions in
2023
| Age | Rate | Maximum monthly amount
See Note 1 |
|---|
| 60 | 64% | $836.20 |
| 61 | 71.2% | $930.28 |
| 62 | 78.4% | $1024.35 |
| 63 | 85.6% | $1118.42 |
| 64 | 92.8% | $1212.50 |
| 65 | 100% | $1306.57 |
| 66 | 108.4% | $1416.32 |
| 67 | 116.8% | $1526.07 |
| 68 | 125.2% | $1635.83 |
| 69 | 133.6% | $1745.58 |
| 70 or over | 142% | $1855.33 |
- The amounts apply to persons entitled to the maximum pension.
Retirement pension start date
Before age 65, the retirement pension cannot be paid until the latest of:
- the month followingyour 60th birthday;
- the month following the date on which we receive your pension application;
- the month chosen in your pension application.
Persons age 60 or over who contributed for at least 1 year to the Plan can draw a retirement pension while continuing to work on a part-time or full-time basis.
Consult the payment dates for pensions under the Québec Pension Plan.
How often are payments made?
Your pension is paid on the last working day of the month.
Living outside Canada?
In certain cases, your pension can be paid by direct deposit in the currency
of your country of residence. See the list of
countries or territories where direct deposit is currently offered.
Sign up for direct deposit to receive your payments in your bank account.
Retroactive retirement pension under the Québec Pension Plan
If you are age 65 or over and you have not applied for your retirement pension, you can receive a retroactive pension covering a maximum of 12 months from the date of the application. However, payment of the pension cannot begin before your 65th birthday.