Your retirement pension under the Québec Pension Plan (QPP) is calculated basedon:
- the employment earnings entered in your file under the QPP. Higher earnings will give you a higherpension;
- theage at which you apply for your pension.At age65, you obtain 100% of the expected amounts. If you apply for your pension before age65, you will receive a lower pension for life. If you begin receiving it after age65, it will be higher forlife. It will stop increasing at age72.
The employment earnings used for the calculation of your retirement pension are those you earned between the month during which you turned18 and the end of the first of the followingmonths:
- the month before the first payment of your retirementpension;
- the month of your 72ndbirthday.
Only your employment earnings that exceed $3500 per year are taken into account in the calculation.
If your earnings for the year are higher than the maximum pensionable earnings, the maximum will be used to calculate yourpension.
Theage at which you begin receiving your pension determines its amount for life. If you are age65 and you begin receiving your retirement pension this year, it will give you a little over 25% of the average employment earnings you received during your career.
If your pension begins before or after you turn 65, an adjustment factor applies to the pension amount. For a person who begins receiving his or her pension before age65, the pension decreases by 0.5% to 0.6% for each month before he or she turns 65. On the contrary, for a person who begins receiving his or her pension after age65, the pension increases by 0.7% for each month that has passed since he or she turned 65. A person therefore receives a higher or lower pension based on the adjustment factor.
Here are the pensions received each month by persons who applied for their pension to begin in 2024, based on their age when they filed theirapplication.
| Age | Adjustement factorSee Note1 | Average pension (per month)See Note2 | Maximum pension (per month)See Note3 |
|---|---|---|---|
| 60 | -30% to-36% | $457 | $873 |
| 61 | -24% to -28.8% | $502 | $972 |
| 62 | -18% to -21.6% | $547 | $1070 |
| 63 | -12% to-14.4% | $592 | $1168 |
| 64 | -6% to-7.2% | $637 | $1266 |
| 65 | 0% | $682 | $1365 |
| 66 | 8.4% | $740 | $1479 |
| 67 | 16.8% | $797 | $1594 |
| 68 | 25.2% | $854 | $1708 |
| 69 | 33.6% | $912 | $1823 |
| 70 | 42.0% | $969 | $1938 |
| 71 | 50.4% | $1026 | $2052 |
| 72 | 58.8% | $1083 | $2167 |
- Calculation of the retirement pension is different for persons who receive a disability pension. For more information, consult the Adjustment of the retirement pension for disabled personspage.Back to reference
- The amounts represent what is received by persons who have earned employment earnings equal to half the maximum pensionable earnings during their career.Back to reference
- The amounts apply to persons entitled to the maximum pension. These persons earned employment income high enough to contribute to the maximum pensionable earnings each year used to calculate their pensionamount.Back to reference
Which earnings are not used for the calculation of the retirement pension under theQPP?
We do not take into account the months during which you had no earnings while you were entitled to, asapplicable:
- a disability pension under the Québec Pension Plan or Canada PensionPlan;
- an income replacement indemnity from the Commission des normes, de l'équité, de la santé et de la sécurité du travail(CNESST).
- family benefits paid by the Québec government or the Canadian government for a child under7. This period may extend until the end of the year during which the child turned18. This is the case if you receive the Supplement for Handicapped Children Requiring Exceptional Care for thechild.
In addition, if this benefits you, we do not take into account the months during which you earned employment earnings that were lower than your average employement earningsduring the sameperiods.
We can also exclude up to15% of your lowest employment earnings from the calculation of yourpension.
Why are these earnings not used to calculate yourpension?
Avoiding taking these earnings into account increases the average used to calculate your pension. Your retirement pension could therefore be higher.
Are you age 65or over?
Your lower or nil employment earnings will no longer lower the average used to calculate your pension. Therefore, you can stop working, reduce your work hours or choose a lower paying job without it affecting your pension when you decide to apply forit.
What you should know about the amount of your retirementpension
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 some things you should know about the calculation of yourpension:
- The age at which you begin receiving your pension determines its amount for life.
- If you begin receiving your pension after age65, you can request a retroactivepension.
- Your pension increases each year in January because it is readjusted according to the cost ofliving. It is readjusted the year following the firstpayment.
- Your pension is taxable. It is therefore considered as income when calculating income tax. Tax deductions are not automatic. If you want, you can request for income tax deductions at thesource.
- You can reduce your income taxes by sharing your retirement pension with yourspouse.
- In the event of a divorce or separation, partition of the employment earnings entered under the QPP may be carried out. After partition, the calculation of the pension will beadjusted.
Consult your Statement of Participation under the QPP in MyAccount to find out the employment earning amounts entered in your file. This document also gives you an estimate of your retirementpension.
Have you carried out the financial planning for yourretirement?
When you feel it is the right time for you, you will need to apply for a retirement pension. You will not receive itautomatically.
Other useful information
- SimulR: the simplified tool for simulating retirementincome
- CompuPension: simulating your retirementincome
- Calculation of the retirement pension under the Québec PensionPlan
