Understanding the "enhanced CPP" changes

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
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Dogger1953
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Understanding the "enhanced CPP" changes

Post by Dogger1953 » 12 Oct 2017 10:56

If you want to understand how the "enhanced CPP" changes affect you, read this article:
https://retirehappy.ca/enhanced-cpp/
DR Pensions Consulting (http://www.DRpensions.ca)

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adrian2
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Re: Understanding the "enhanced CPP" changes

Post by adrian2 » 12 Oct 2017 13:53

Thanks, Doug, very informative.
As you can see, if you’re thinking of applying for your CPP earlier than 2025, the enhanced CPP will be of little value to you. However, for each year of pensionable earnings beyond 2024, the changes mean that your maximum CPP retirement pension will be approximately 1.3% more than under the current rules.
In my case, the longest I can imagine working is until the end of 2024 (age 62).
The difference is an extra $37 a month ($400 or so per annum) compared to current rules (of course, longinvest's argument to delay the CPP until age 70 remains valid).
Imagefiniki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]

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Re: Understanding the "enhanced CPP" changes

Post by Quebec » 12 Oct 2017 14:49

This article is now listed in the external links of finiki: Canada Pension Plan
Imagefiniki, the Canadian financial wiki: a knowledge base of financial subjects written from a Canadian perspective

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