CPP: small plan, big potential?!

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)

Tags: , ,

One Response to CPP: small plan, big potential?!

  1. elvinmerij on 2014/05/22 at 2:06 pm

    Why is your potential monthly CPP benefit only $240? If you are in your mid to late 50s, and you’ve been working full-time your entire career, it should be much higher than that.

Leave a Reply

Feature Story

How Much Do First Nations Chiefs Make Annually across Canada?

Chief Ron Giesbrecht in BC took home almost $1,000,000 INCOME TAX FREE! His band has a population of only 82!!! Chief Jim Boucher in Alberta claimed an annual salary of...

Read more »

Top Financial Stories

How Much Do Tim Hortons Owners Earn Annually?

Tim Hortons store owner pockets each year: $265,558 and more (after tax & interest)!!! In year 2002 for an average Tim Horton's outlet: Gross earning: $1.5Million...

Read more »