Tag Archives: CPP

Impact of Enhanced CPP on Take-Home Pay

Enhancements to the Canada Pension Plan started January 1, 2019. Contributions to the CPP will increase for the next 7 years from last year’s 4.95% so that you will receive less take-home pay. How much will this be? More

Estimating Savings Required for Retirement

A general rule is that you should be saving 10% of your salary for retirement. Because everyone’s situation is different, how do you know if this is too much or not enough. How does your pension, CPP and OAS affect this number? The spreadsheet combines two of the most popular posts to help answer this question. More

Comparing Savings Spreadsheet with Lifetime Finances

A previous post provided a spreadsheet for estimating the savings required for retirement. When compared to using FinanceBase-Lifetime Finances which takes into account income taxes, for the example provided, Lifetime Finances requires less savings and has provides higher after retirement expenses for the same age when assets go to zero. More

When to Take the CPP – What Is Involved?

If you have worked in Canada you will have contributed to the Canada Pension Plan (CPP). You have some control over when to take and how much of a CPP retirement pension you will receive when you reach age 60. This post summarizes what you need to know and do and provides links to more details. More

When to Take the CPP – Factors Involved

Before deciding when to take your Canada Pension Plan retirement pension you need to consider the impact of a number of factors that affect how much you will receive. These include the age-dependent increase in yearly payment provided, drop-outs, inflation, marginal taxes, the break-even age and survival probability. More

When to Take the CPP – Analysis

The two options for taking the Canada Pension Plan (CPP) retirement pension depend on when you stop working and when you decide to take the pension and are discussed in this post with an analysis of two examples using the spreadsheets.  More

When to Take the CPP – Spreadsheets

The downloadable Excel spreadsheets described in this post can be used to determine when to take your Canada Pension Plan retirement pension. Once you copy your CPP Statement of Contributions into the table provided, a macro can be run that fills in the drop-outs and removals. Yearly payments, break-even ages and cumulative payments at various ages plus many charts will give you an insight as to when to take the CPP for your circumstances. You can also set inflation and marginal tax rates.

Life Expectancy and Survival Probability

Life expectancy is a key factor in a number of decisions required when you approach retirement. For example, should you delay taking the Canada Pension Plan pension or the Old Age Security payment? You need to feel comfortable that you will be alive to take a delayed pension and, for example with the CPP if you will be alive at the break-even age. More