If you are over 65, still working, and collecting your Canada Pension Plan (CPP) retirement pension, you might notice a deduction on your paycheque that you thought would disappear: CPP contributions. 

Many Canadians assume that once they start collecting their pension, the deductions stop. However, if you are under age 70 and working, the government requires you to keep contributing unless you actively choose to stop. 

This “active choice” is made using a specific form called the CPT30. 

Should you file it? Or is it better to keep paying to earn more pension later? The answer depends entirely on your employment status, your health, and your cash flow needs.

Here is everything you need to know to make the right call. 

The Rules: The “65 to 70” Window 

First, let’s clarify who has a choice. 

• Age 60 to 64: If you are working and receiving CPP, contributions are mandatory. You cannot opt out. 
• Age 65 to 69: Contributions are voluntary. You can choose to stop paying (opt out) or keep paying (to earn more benefits).
• Age 70+: Contributions stop automatically. You do not need to do anything. 

If you fall into that middle category (65–69), you are currently in a decision window. 

The “Math”: Is It Worth Contributing? 

If you choose to keep contributing, your money goes toward the Post-Retirement Benefit (PRB). This is a “mini-pension” added to your monthly payments starting the following year, and it lasts for the rest of your life. 

But is the cost worth the reward? Let’s look at the numbers (based on 2026 estimates). 

Scenario A: You are an Employee 

• The Cost: You pay 5.95% of your income into CPP. Your employer matches this. 
• The Return: For every ~$4,230 you contribute (the maximum), you earn roughly $660/year in extra pension for life¹. 
• The Break-Even: It takes about 6.5 years to get your money back. 
• The Verdict: Generally Worth It. If you are in good health and expect to live past age 72, this is a solid, inflation-indexed return on investment (roughly 15% ROI). 

Scenario B: You are Self-Employed or a Small Business Owner 

• The Cost: You must pay both the employee and employer portions (11.9%). 
• The Return: The benefit remains the same ($660/year max). 
• The Break-Even: It takes roughly 13 years to get your money back. 
• The Verdict: Rarely Worth It. You would need to live until nearly age 80 just to break even on your contributions. For most business owners, keeping that cash and investing it in a TFSA or paying down debt is the smarter financial move. 

The “Hidden Trap”: Survivor Benefits 

There is one major reason to stop contributing that applies to everyone: Estate Planning. 

The Post-Retirement Benefit (PRB) is fantastic while you are alive, but it is terrible for your heirs. Unlike a private investment account, which goes to your family in full when you pass away, the PRB has very strict survivor rules. 

However, If your spouse is already receiving a maximum or near-maximum CPP pension, they will likely receive $0 from your PRB upon your death due to federal “caps” on combined benefits. If you are concerned about leaving money to a spouse, opting out and investing the savings privately is often the safer route. 

How to Opt Out (The CPT30 Form) 

If you have decided to stop contributing, you cannot just tell your payroll department. You must file the official election. 

Step 1: Download the Form Search for form CPT30 on the Canada Revenue Agency (CRA) website. 

Step 2: Fill It Out 

• Complete Parts A and B with your personal info. 
• Complete Part C to elect to STOP contributing. 
• Sign and date it. 

Step 3: Submit It 

• Copy 1: Give this to your employer. They need this authority to stop the deductions from your next paycheque. 
• Copy 2: Mail the original to the CRA (the address is on the form).
• Copy 3: Keep one for your files. 

Important Timing Rule: The stop takes effect on the first day of the month AFTER you give the form to your employer. (e.g., Hand it in on November 15th, and deductions stop December 1st). 

Summary: A Quick Decision Checklist 

KEEP Contributing IF:

• You are an employee (not self-employed). 
• You are in excellent health and expect a long life. 
• You prefer a guaranteed, inflation-protected income over managing your own investments.

STOP Contributing (File CPT30) IF: 

• You are self-employed.
• You have health concerns or a shortened life expectancy.
• You want to maximize the inheritance you leave to a spouse. 
• You need the immediate cash flow now more than a small pension increase later. 

Disclaimer: The information above is for educational purposes and based on 2026 CRA figures. It does not constitute specific financial or legal advice. Please contact our office to review your specific tax situation before filing an election.