CPP Calculator

CPP Overview

The Canada Pension Plan provides retirement income based on your contributions during working years. The amount depends on how much and how long you contributed.

2024 CPP Amounts

• Maximum at 65: $1,364.60/month
• Average payment: ~$760/month
• Maximum pensionable earnings: $68,500
• Contribution rate: 5.95% (employee + employer each)

Early vs Late Start

• Age 60: 36% reduction (0.6% per month)
• Age 65: Standard amount
• Age 70: 42% increase (0.7% per month)
• No benefit to waiting past 70

How CPP is Calculated

• Based on average pensionable earnings over career
• Low-earning years (up to 8) can be dropped out
• Child-rearing dropout provision available
• Need ~39 years at max earnings for full CPP

CPP Enhancement (2019-2023)

• Higher contributions = higher benefits
• Replacement rate increasing from 25% to 33%
• Second additional CPP contribution (CPP2) from 2024
• Full enhanced benefits for those starting work in 2019+

When to Start CPP

• Start early if: Need income, poor health, short life expectancy
• Delay if: Still working, have other income, good health
• Can work and collect CPP (but may trigger Post-Retirement Benefit)

Other Benefits

• CPP Disability: If unable to work
• Survivor Benefits: For spouse/children
• Death Benefit: Lump sum up to $2,500
• Credit Splitting: After divorce