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Québec Pension Plan (QPP): When and Why to Start Your Pension

The Québec Pension Plan (QPP) is a key part of retirement planning for Quebec workers. While you can begin receiving benefits as early as age 60, the timing of your application significantly impacts how much you'll receive — for life.

What Is the Québec Pension Plan?

The QPP is a mandatory public pension program funded by payroll contributions from both employees and employers.
  • You contribute to the QPP if you earn employment or self-employment income in Quebec.
  • Your retirement pension amount is based on:
  1. Your contributory earnings
  2. The number of years you contributed
  3. The age at which you start receiving benefits
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The more years you contribute and the higher your income, the larger your pension.

Starting the QPP at Age 60: A Permanent Reduction

You may choose to begin receiving your QPP retirement benefits as early as age 60. However, this comes with a permanent reduction to your monthly payments.
  • The reduction is 0.6% per month before age 65.
  • That’s a 36% total reduction if you apply at exactly 60.

Example

If your monthly pension at 65 would be $1,000, taking it at 60 would reduce it to $640/month — for life.

When might this make sense?

  • If you have health issues or a shorter life expectancy.
  • If you need the income now to meet your basic expenses.
  • If you're fully retired and lack other income sources.

Delaying Past 65: A Long-Term Gain

Delaying your QPP after age 65 results in a significant monthly increase:
  • You receive a 0.7% bonus per month after 65.
  • This adds up to 8.4% more per year.
  • Waiting until age 72 means a 58.8% increase in your monthly pension.

Example

A $1,000/month pension at 65 grows to $1,588/month at 72.

When is this strategy advantageous?

  • If you are in good health with a long life expectancy.
  • If you have other sources of income (TFSA, RRSP, workplace pension).
  • If you want to maximize guaranteed income for life.

Simplified Comparison

Final Thoughts: Make the Right Decision for You

Choosing when to apply for your QPP benefits is a strategic decision. Consider the following:
  • Your health and life expectancy
  • Other retirement income sources
  • Your short- and long-term financial needs
  • Personal goals and retirement plans
A thoughtful retirement plan will help you determine the optimal age to start your pension — and ensure greater peace of mind and financial stability throughout retirement.