I checked my CPP Statement of Contributions just now. Sadly enough, I discover that I’m only eligible to receive a monthly retirement pension of $240, if I turned 65 this year and decided to receive CPP benefit. How am I supposed to survive with that petty amount. I spend about $200 each month on grocery, let alone the monthly $700 rent.
I wonder…what is the maximum CPP benefit that an eligible senior can get? Below is some info I find out about CPP.
Features of CPP
- CPP is a pension for working in Canada, as opposed to OAS (Old Age Security) pension for living in Canada.
- CPP contribution is compulsory for anyone who works in Canada.
- In year 2009, the maximum CPP retirement pension is around $910 per month if taken at the age of 65.
- CPP does not start automatically. You have to apply in order to receive it. This sounds a bit contradictory because your contribution is automatic and yet your pension is not automatic.
- From my personal perspective, CPP should not be considered a benefit, because you “pay” for it through your contribution deducted from your pay cheques.
- You can find out your CPP Statement of Contributions as well as your estimated CPP pension when you turn 65 on Service Canada website.
- CPP contributions are tax-deductible; however, CPP pensions are taxable incomes. Sort of like “Tax-deferred”.
- CPP contribution rates are 9.9% for self-employed and 4.95% for employee. (See contribution rate table)