About the Canada Pension Plan (CPP)
The Canada Pension Plan is a retirement pension that gives alternative income when an individual leaves the workforce. The CPP is a social security plan and a “pillar” of the retirement system for Canadians – the opposite three being the Old Age Savings Plan (OAS), the Guaranteed Income Supplement (GIS), and private savings. The CPP is funded by contributions from employees, employers, and the self-employed. It is just not paid for by the federal government, although many Canadians might imagine so.
The CPP is a government-administered program and is mandatory, meaning all Canadian employees and employers must contribute. The plan covers all of Canada except Quebec, for whose residents there may be the Quebec Pension Plan (QPP). Below are the remaining CPP payment dates for 2024.
CPP payment dates for 2024
January 29, 2024February 27, 2024March 26, 202426 April 2024May 29, 202426 June 2024July 29, 2024- 28 August 2024
- 25 September 2024
- October 29, 2024
- 27 November 2024
- December 20, 2024
Where does the CPP money come from?
Unlike OAS and GIS, the CPP is funded by employers and employees, in addition to the self-employed. These contributions, which appear as deductions in your paycheck, are pooled and invested. For the self-employed, the CPP contribution, which relies in your net income from the business, is added to your tax bill. The principal amount and any income earned goes back into this system.
In January 2024, CPP contributions increased as a part of a seven-year government initiative launched in 2019 to spice up retirement income. Read more concerning the CPP increase to learn how far more you may pay as an worker or freelancer.
Who manages the CPP’s investment portfolio?
The pension plan’s investments are managed by CPP Investments, a state-owned company that operates independently of the state. Every three years Office of the Chief Actuary of Canada assesses the sustainability of the plan; the subsequent review will happen in 2025. “The CPP is projected to be financially viable for at least the next 75 years,” CPP Investments explains on its website.
Am I eligible for CPP?
If you’re at the very least 60 years old and have made at the very least one contribution to the CPP, you’re eligible to receive CPP payments. You may additionally be eligible should you received CPP credits from a former partner or spouse who contributed to the plan. CPP advantages can be found to Canadian residents, everlasting residents, legal residents or immigrants.
Should I apply for CPP or QPP?
If you’ve got contributed to each the CPP and the QPP during your years working in Quebec, your residency on the time of your application will determine which plan you’re eligible for. If you reside in Quebec, you’ll apply in your pension under the QPP. Otherwise, you’ll apply for the CPP.
When are you able to receive your CPP?
You can start receiving your pension any time between ages 60 and 70. However, the younger you’re once you start receiving CPP, the smaller your monthly payments will probably be. Many Canadians decide to wait until age 65 to begin receiving payments.
