You do not automatically receive your retirement pension under the Québec Pension Plan (QPP); you must apply for it. But when? Note that the amount of your pension varies depending on the age at which you start receiving it. Keep that in mind!
The normal retirement age is 65. It is only at that age that you will receive 100% of the amounts to which you are entitled.
If you apply for your pension after age 65, you will receive a higher pension for life. The later you postpone payment of your pension, the higher the amount.
You can wait until you turn 72 to start receiving your pension, which will have reached its maximum amount.
| Retirement age | Percentage of the maximum pension |
|---|
| Age 60 | 64% |
| Age 65 | 100% |
| Age 72 | 158.8% |
A well thought-out choice
Most people know it: you can receive your pension as of age 60 but, if you make that choice, note that it will be lower (up to -36%) for the rest of your life. Remember: the retirement pension under the
QPP increases each year because it is adjusted to the cost of living. If your pension is reduced, so will your purchasing power, for life.
Now, we see you coming. You are probably telling yourself: "Well, in the end, I will have more money if I apply for my pension at age 60 because I will enjoy it for a longer period..." We will answer you: "Be careful! Be aware of old myths that are going around."
In reality, as soon as you turn 74, you will earn more if you applied for your retirement at age 65 rather than at age 60. If we rely on the average life expectancy in Québec, you have more than 8 chances out of 10 to live until age 74 or over that age. If you had the same chances to win the lottery, we bet that you would not hesitate before buying a ticket.
A person who applies for his or her retirement pension under the
QPP before age 65 could say goodbye to several thousands of dollars. People must stop believing that if you apply for your pension when you turn 65, you "are leaving money to the government". It is exactly the opposite: you will undoubtedly receive more, which is totally to your advantage.
In any case, choosing the age at which you will apply for your pension is a personal choice, and there is no option that suits everyone perfectly. It depends on several factors...
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