At what age should you apply for your retirement pension under the Québec Pension Plan?
Choosing the age at which you will apply for your retirement pension under the Québec Pension Plan (QPP) is part of the financial planning for your retirement. This decision is very important because the pension amount you will receive for life depends on it.
The retirement pension under the
QPP is income that:
It will therefore provide a portion of the income you will need for the rest of your life, whereas your personal savings could be depleted.
Higher income if you apply for it later
The normal age to receive your retirement pension under the
QPP is 65. If you apply for your pension at that age, you will receive 100% of the expected amounts each month. If you apply for your pension after age 65, you will receive a
higher pension for life. It will increase by 0.7% for each month that has passed since you turned 65, up to a maximum of 58.8% for a pension that begins when you turn 72. You can apply for your pension after you turn 72, but the amount stops increasing after that age.
However, if you apply for your pension before age 65, you will receive a
lower pension for life. Your pension will be decreased by 0.5% to 0.6% for each month before you turn 65. Therefore, if you apply for your pension at age 60, you will receive a pension that is 30% to 36% lower than the pension you would have received at age 65 or later.
Therefore, it is generally advantageous to apply for your pension at age 65 or even later.
Did you choose to receive your pension after age 70?
You will receive higher payments in the fall of 2024, retroactive to 1 January 2024. In the meantime, your pension amount will be the same as if you had applied for it at age 70.
Here are the pensions received each year by persons who applied for their pension to begin in
2024, based on their age when they filed their application.
| Age | Average pension
(per year) See Note 1 | Maximum Pension
(per Year) See Note 2 |
|---|
| 60 | $5486 | $10 480 |
|---|
| 61 | $6026 | $11 659 |
|---|
| 62 | $6566 | $12 838 |
|---|
| 63 | $7107 | $14 017 |
|---|
| 64 | $7647 | $15 196 |
|---|
| 65 | $8188 | $16 375 |
|---|
| 66 | $8875 | $17 751 |
|---|
| 67 | $9563 | $19 126 |
|---|
| 68 | $10 251 | $20 502 |
|---|
| 69 | $10 939 | $21 877 |
|---|
| 70 | $11 626 | $23 253 |
|---|
| 71 | $12 314 | $24 628 |
|---|
| 72 | $13 002 | $26 004 |
|---|
- To calculate an average pension, we suppose that, throughout his or her career, a person has earned employment earnings equal to half the
maximum pensionable earnings. The amounts represent what most beneficiaries receive when they started receiving their pension in 2024. Back to the reference
- The amounts apply to persons entitled to the maximum pension. These persons earned employment earnings high enough to contribute to the maximum pensionable earnings each year that are used to calculate their pension amount. Back to the reference
Phased retirement
You can
continue working even if you are receiving your retirement pension.
Tips to help you make the right decision
Before applying for a retirement pension under the Québec Pension Plan, you must
ask yourself some questions to make sure that your income will be sufficient during your entire retirement. For example, you must think about your state of health, your life expectancy, your savings and the effects of taxes on your income. All these factors could justify applying for your pension earlier or at a later time.
Your
Statement of Participation is a valuable tool that allows you to obtain an estimate of the retirement pension you will receive based on the age at which you apply for it. It is available at all times in
My Account.
You can also obtain an estimate of the retirement pension under the QPP you will receive by using the CompuPension or SimulR tools. The pension estimated with these tools depends on the age at which you apply for it. These tools will also give you an estimate of the savings you will need for your retirement.
If needed, consult a financial planner. This person will help you determine the best time to apply for your retirement pension.
Have you carried out the financial planning for your retirement?
When you feel it is the right time for you, you will need to
apply for a retirement pension. You will not receive it automatically.
Also consult