Quick answer: If you’re under 65, CPP contributions are mandatory while working — even after starting your CPP retirement pension. From 65 to 70, contributions are optional; you can opt out using Form CPT30. Each year of post-CPP contributions adds a Post-Retirement Benefit (PRB) on top of your pension.
What this means: The PRB is small: about $20-$45 per month for life per year of full-YMPE contributions. Worth it if you’re still earning meaningful T4 income; rarely worth it for nominal post-65 work. The opt-out is a one-time election.
What to do next: Check whether starting CPP while working still makes sense. CPP timing calculator →
CPP contributions are mandatory for employees and self-employed Canadians until age 65. Between 65 and 70, contributions continue automatically while you are employed unless you elect out using Form CPT30. Each year you contribute after starting your retirement pension, the CPP system pays you a Post-Retirement Benefit (PRB) starting the following January, on top of your existing CPP. After age 70, contributions stop regardless of work status. The PRB is small per dollar contributed, but it accumulates and is fully indexed to inflation.
The contribution rules at each age
| Age and status | CPP contributions required? | PRB earned? |
|---|---|---|
| Under 65, not collecting CPP | Yes, mandatory | No (these contributions build the regular pension) |
| Under 65, already collecting CPP | Yes, mandatory | Yes |
| 65 to 69, not collecting CPP | Yes, unless opted out (CPT30) | No (builds regular pension) |
| 65 to 69, already collecting CPP | Yes, unless opted out (CPT30) | Yes |
| 70+, any status | No, contributions stop | No |
Form CPT30 and the opt-out
An employed Canadian aged 65 to 69 who is already receiving CPP can elect to stop contributing by filing Form CPT30 with the employer and the CRA. The election is made by the employee, takes effect the month after filing, and applies to all future employment until the employee revokes it (also via CPT30). Once revoked, the worker cannot opt out again that calendar year. Self-employed Canadians elect by completing Schedule 8 on the T1 in the relevant year.
The Post-Retirement Benefit (PRB)
The PRB is a small monthly addition for each year you contribute to CPP while already collecting your CPP retirement pension. The PRB amount is calculated based on your earnings during the year and is added to your monthly CPP starting the January after the year of contribution. The maximum new PRB for someone aged 65 in 2026 is $54.69/month, awarded for someone who contributed at the YMPE for the full year.
Why people opt out
| Reason | Detail |
|---|---|
| Cash flow | Avoid 5.95% employee deduction on top of regular CPP receipt; useful when income is lower or when the marginal value of contributions seems small. |
| Reduced effort | Simple election, applies year-round. |
| Higher net pay | For an employee earning $74,600 (YMPE), opting out saves roughly $4,230 of employee CPP plus matching $4,230 of employer CPP for the employer. |
| Tax outcomes | Half of CPP contribution is non-refundable credit at 14 percent federal; half is deduction. PRB is taxable. Some retirees calculate that PRB does not justify continued contributions. |
Why people stay in
- The PRB is fully indexed to inflation and paid for life. Long-lived workers see good lifetime value.
- Continuing to contribute builds toward the maximum CPP if the worker has not yet earned 39 years of maximum contributions.
- Self-employed workers who run a corporation may prefer to stay in for survivor benefit reasons or to maintain CPP entitlement uniformity.
- If the worker is undecided, doing nothing means contributions continue automatically.
Worked example: $80,000 employee at age 67
A 67-year-old earning $80,000 per year from employment and already collecting CPP at $1,200/month considers opting out for 2026.
| Outcome | Continue contributing | Opt out (CPT30) |
|---|---|---|
| Employee CPP1 + CPP2 deducted | ~$4,646 | $0 |
| Net pay impact | Reduced by $4,646 | No change |
| PRB earned for next year | ~$54/month new PRB starting January 2027 | $0 |
| Lifetime PRB if living to 85 (18 years from age 67) | $54 × 12 × 18 = ~$11,664 (nominal); ~$15,000 with indexing | $0 |
The PRB lifetime value at $15,000 vs the $4,646 cost makes the contribution worthwhile for this worker if life expectancy is average. Below age 78, the trade-off is closer.
Practical questions to answer before opting out
- How long do I expect to keep working past 65?
- Have I already maxed CPP (39 years at YMPE)? If not, contributions add to the regular pension as well as the PRB.
- What is my expected longevity?
- Am I more focused on net pay today or on lifetime indexed retirement income?
Cross-references
- CPP Start-Age Decision: 60 vs 65 vs 70
- CPP and OAS Together: When to Start Each Benefit
- Should I Delay CPP If I Have an RRSP?
Frequently asked questions
- Do I have to pay CPP after 65 if I am still working?
- Between 65 and 69, contributions continue automatically while you are employed. You can elect to stop by filing Form CPT30. After age 70, contributions stop regardless of work status.
- What is the Post-Retirement Benefit (PRB)?
- An additional CPP payment earned for each year you contribute to CPP while already collecting your CPP retirement pension. The PRB is added to your monthly CPP starting the January following the contribution year.
- How much is the maximum PRB for 2026?
- The maximum new PRB for someone aged 65 in 2026 is $54.69 per month, indexed annually.
- How do I opt out of CPP at 65?
- Employees file Form CPT30 with the CRA and provide a copy to the employer. The election takes effect the month after filing. Self-employed taxpayers elect by completing Schedule 8 on the T1.
- Can I opt back into CPP after opting out?
- Yes, by revoking the election with another Form CPT30. Once revoked, you cannot opt out again in the same calendar year.
- Do CPP contributions after 65 increase my regular CPP pension?
- Only if you have not yet started collecting CPP. After CPP has started, contributions earn the PRB instead of increasing the base pension.
- Is the PRB indexed for inflation?
- Yes. PRB payments are indexed annually using the same Consumer Price Index adjustment as the regular CPP retirement pension.