Every January, Service Canada adjusts CPP payments to match rising living costs. This isn’t an estimate or projection—the 2.0% increase for 2026 is confirmed by the Government of Canada’s official CPP Consumer Price Index adjustment page.
The adjustment uses inflation data from two consecutive 12-month periods, ensuring your benefits maintain purchasing power even as prices climb.
Why This Matters Now
For many Canadian retirees, CPP represents the most reliable income stream because it’s government-backed, arrives on a predictable schedule, and automatically adjusts for inflation. While you might have other retirement savings, CPP provides stability that market-dependent investments can’t match.
Your 2026 CPP Payment Schedule
Mark these dates in your calendar. CPP payments for 2026 will be deposited on:
- January 28, 2026 ← First payment with 2.0% increase
- February 25, 2026
- March 27, 2026
- April 28, 2026
- May 27, 2026
- June 26, 2026
- July 29, 2026
- August 27, 2026
- September 25, 2026
- October 28, 2026
- November 26, 2026
- December 22, 2026
If you receive Old Age Security (OAS) in addition to CPP, both benefits arrive on the same dates.
Pro tip: Set up direct deposit if you haven’t already. Your updated payment amount will appear automatically on January 28 without any paperwork.
How Much More Will You Receive?
A 2.0% increase might sound modest, but it adds up over the year. Here’s what the adjustment looks like in real dollars:
Monthly and Annual Impact
| Current Monthly CPP (2025) | New Monthly CPP (2026) | Monthly Increase | Annual Increase |
|---|---|---|---|
| $500 | $510 | $10 | $120 |
| $750 | $765 | $15 | $180 |
| $900 | $918 | $18 | $216 |
| $1,000 | $1,020 | $20 | $240 |
| $1,200 | $1,224 | $24 | $288 |
| $1,400 | $1,428 | $28 | $336 |
These are approximate calculations based on a straight 2.0% adjustment. Your actual deposit may vary slightly due to individual circumstances, benefit type, or rounding.
Why Some See Bigger Increases
Two factors determine how much extra you’ll receive:
Your base payment amount: A 2.0% increase on $1,300 produces a larger dollar amount than 2.0% on $600—even though the percentage is identical.
When you started CPP: Starting early (at age 60) results in a permanently reduced base payment, meaning smaller indexed increases. Starting later (closer to 70) gives you a higher base payment and correspondingly larger adjustments.
Who Qualifies for the January 2026 Increase?
The 2.0% adjustment applies automatically to most CPP recipients. No application is needed.
CPP Retirement Pension
If you’re currently receiving a CPP retirement pension, you’ll see the increase regardless of when you started benefits. The indexation doesn’t depend on your start date or how long you’ve been receiving payments.
Your monthly amount reflects your lifetime contribution history, average pensionable earnings, and the age you chose to begin CPP—but once you’re enrolled, annual indexation is standard.
CPP Disability Benefits
CPP disability (CPP-D) recipients also receive the January adjustment. This matters especially for people with long-term medical conditions who have limited options to offset inflation through additional work income.
The increase helps maintain financial stability for Canadians facing extended periods without employment income.
Survivor Benefits
If you’re a surviving spouse, common-law partner, or dependent child receiving CPP survivor benefits, your payment will be indexed as well.
For many households, survivor benefits provide crucial financial support after a significant loss. Annual indexation ensures this support doesn’t erode as living costs rise.
Post-Retirement Benefits
Some people who continue working while receiving CPP may accumulate post-retirement benefits (PRB). These amounts can also be indexed and may change based on ongoing contributions and annual adjustments.
Maximum vs. Average CPP: Setting Realistic Expectations
Headlines often reference the maximum CPP payment, but few Canadians actually receive it. Maximum benefits require decades of contributions near the yearly maximum pensionable earnings—something most workers don’t achieve consistently.
According to Service Canada data:
- Maximum CPP at age 65 (January 2025): $1,433.00/month
- Average CPP at age 65 (October 2024): $899.67/month
This gap explains why the same 2.0% increase produces different dollar amounts for different recipients. Someone receiving $900 monthly sees a smaller absolute increase than someone receiving $1,400—even though both get the same percentage adjustment.
Important Details for New Retirees
Planning to start CPP around the end of 2025 or beginning of 2026? Here’s what you need to know.
Timing and Indexation
The annual CPI indexing applies to benefits once you’re actively receiving them. Your starting amount depends on three factors:
- Your personal contribution record
- Your age when you begin CPP
- Current-year benefit rates
If you start CPP in early 2026, the framework already includes the indexed 2026 baseline. You won’t receive a “bonus” increase—your file will simply reflect the current year’s adjusted rates from day one.
Application Processing
CPP applications can take several weeks to process. If you’re planning to retire soon, apply well before your intended start date to avoid payment delays.
What Happens If Your Payment Doesn’t Increase?
If your January 28 deposit doesn’t reflect the 2.0% adjustment, don’t panic immediately. Here’s what to do:
- Check your December payment stub to confirm your current “monthly entitlement” amount
- Compare the January payment to see if it’s 2.0% higher
- Contact Service Canada if the increase is missing—payment processing errors occasionally occur
You can reach Service Canada at 1-800-277-9914 or through your My Service Canada Account online.
How CPP Compares to Other Retirement Income
CPP isn’t designed to be your only retirement income source. Most financial planners recommend building retirement income from multiple streams:
- CPP: Government-backed, inflation-indexed foundation
- Old Age Security (OAS): Additional government benefit for seniors 65+
- Workplace pensions: If your employer offers a defined benefit or contribution plan
- Personal savings: RRSPs, TFSAs, and other investments
- Part-time work: Supplemental income if you choose to continue working
The strength of CPP is its reliability. While investments can fluctuate and part-time work may not always be available, CPP deposits arrive monthly like clockwork and automatically adjust for inflation.
Looking Beyond 2026: Will CPP Keep Increasing?
CPP is designed to adjust annually for as long as the program exists. After the January 2026 increase, the next adjustment will occur in January 2027, based on 2026 inflation data.
This built-in protection means your CPP benefit maintains purchasing power across your retirement years—whether that’s 10, 20, or 30+ years.
The adjustment happens automatically and is driven by inflation metrics rather than political decisions or budget negotiations, which adds another layer of predictability.
Frequently Asked Questions
Can I work while receiving CPP without affecting my payments?
Yes. You can work and receive CPP simultaneously. If you’re under 70 and still working, you may need to continue making CPP contributions, which can create additional post-retirement benefits that increase your future payments.
What happens to my CPP when I die?
CPP retirement payments stop the month following your death. Eligible survivors may receive survivor benefits, and there may be a one-time CPP death benefit payable to your estate or eligible beneficiaries.
Does CPP income affect my eligibility for other benefits?
CPP counts as taxable income and may affect income-tested benefits like the Guaranteed Income Supplement (GIS) or certain provincial programs. The impact depends on your total household income.
How is the annual CPP increase calculated?
Service Canada uses the Consumer Price Index (CPI) to measure inflation across two consecutive 12-month periods. The resulting percentage becomes next year’s adjustment rate.
Will the 2026 increase affect my taxes?
Yes. Since CPP is taxable income, a higher benefit means slightly higher taxable income. However, you’ll also have more money to cover rising costs—the net effect is typically positive for your purchasing power.
Final Thoughts
The 2.0% CPP increase coming in January 2026 is more than a routine adjustment—it’s a critical protection that helps millions of Canadians maintain their standard of living as costs rise.
While the monthly boost might seem small, its cumulative effect over years provides meaningful financial security. Combined with CPP’s reliability and automatic indexation, this makes it one of the most valuable components of Canada’s retirement system.
Your first increased payment arrives on January 28, 2026. No action is required—the adjustment happens automatically for all eligible recipients.
