Working While Receiving CPP November 2025 – Many Canadians nearing retirement wonder if they can still work while receiving the Canada Pension Plan (CPP). With cost-of-living pressures and longer life expectancy, more individuals are choosing to stay in the workforce even after starting their CPP benefits. Understanding how working affects your CPP payments can help you maximize your overall retirement income and plan smarter for the years ahead. This article explains how employment income interacts with CPP, the potential advantages of continuing to contribute, and key strategies to boost your pension earnings in November 2025 and beyond.
Working While Receiving CPP in Canada
Canadian citizens who receive the CPP retirement pension can still work and earn income without losing their benefits. In fact, continuing to work after you start receiving CPP can actually increase your overall retirement income through additional contributions. The Canada Revenue Agency allows individuals aged 60 to 70 to make optional CPP contributions, even after their pension begins. These contributions are used to create a Post-Retirement Benefit (PRB), which boosts your monthly payments each year. This system rewards those who remain active in the workforce while collecting CPP, helping Canadians enjoy higher long-term financial security.
How Employment Affects CPP Benefits for Canadian Workers
When Canadians continue working while receiving CPP, their contributions depend on their age and employment status. If you’re under 65, both you and your employer must continue contributing to CPP. However, once you reach 65, contributions become voluntary. Workers can opt out by submitting a CPT30 form to their employer and the CRA. The extra contributions generate a PRB, which increases your monthly CPP payments the following year. For many retirees, this small annual increase adds up significantly over time, allowing them to offset inflation and rising expenses during retirement in Canada.
| Age Group | CPP Contribution Status | Employer Requirement | Benefit Type |
|---|---|---|---|
| 60–64 years | Mandatory | Required | CPP + PRB |
| 65–69 years | Optional (CPT30 form) | Optional | CPP + PRB (if contributing) |
| 70 years and above | Not allowed | Not required | CPP only |
| Any age (self-employed) | Mandatory until 70 | Not applicable | CPP + PRB (if eligible) |
Boosting Retirement Income While Working in Canada
Canadian retirees can boost their retirement income by combining CPP with other sources, such as Old Age Security (OAS), private pensions, or part-time work. Those who delay their CPP payments beyond age 65 receive an additional 0.7% per month increase, up to 42% if deferred until age 70. Working while collecting CPP also allows you to build up PRBs, providing an extra financial cushion. Moreover, continuing to earn employment income helps you stay active, maintain social connections, and delay drawing down your personal savings—ensuring a more comfortable and financially stable retirement across Canada.
Managing CPP Contributions and Taxes for Canadians
While working and receiving CPP can enhance retirement income, it’s important to consider tax implications. CPP payments are taxable, meaning your total income—including employment wages—may push you into a higher tax bracket. Canadians can manage this by splitting income with a spouse, claiming pension income credits, or deferring CPP payments strategically. Consulting a financial advisor before making contribution decisions ensures that your CPP, OAS, and tax planning align effectively. With careful management, working Canadians can enjoy both a steady income and the long-term advantages of higher pension benefits in their later years.
Frequently Asked Questions (FAQs)
1. Can I still work while getting CPP in Canada?
Yes, you can work while receiving CPP, and you may continue contributing to earn additional benefits.
2. Will my CPP be reduced if I work?
No, your CPP retirement payments are not reduced if you continue working after retirement age.
3. How do I stop CPP contributions after age 65?
You can submit form CPT30 to your employer and the CRA to stop contributions once you turn 65.
4. What is the Post-Retirement Benefit (PRB)?
The PRB is an additional lifetime benefit added to your CPP if you continue contributing while receiving it.
