Below are summaries of educational articles I have been collecting of late related to Retirement Income Planning. To read the entire article, click any blue title below to read more.
Get ready for increased CPP contributions and benefits
June 20, 2018 – Beginning in 2019, CPP contributions will increase gradually, such that the contribution rate in 2023 will be one per cent higher than it is today for both employees and employers. In 2024, an additional four per cent contribution will apply on earnings above the year’s maximum pensionable earnings up to a new projected upper limit, estimated to be $79,400. By 2025, the enhancements will be fully in place, with a target income replacement of 33 per cent of average work earnings.
What CPP reforms mean for Canadian seniors
June 20, 2018 – Two years ago, the federal government announced an expansion to the Canada Pension Plan (CPP). This expansion included a higher replacement of average work earnings − increased from a quarter to a third − up to a maximum limit, which will also gradually increase by 14 per cent to $79,400 by 2025. This means a Canadian with 40 years of $50,000 in consistent pensionable earnings would receive $4,000 more a year in CPP benefits.
Transitioning into retirement
May 24, 2018 – With his first OAS payment on the way, Jon reflects on what retirement has looked like for him.
Report recommends longer deferral period for CPP
June 27, 2018 – While not guaranteed to happen…CD Howe institute is recommending that recommending a longer deferral period for the Canada Pension Plan. Currently you can defer starting your CPP to age 70. Their recommendation is as late as age 75.
For richer or poorer: Sharing CPP with a spouse at divorce means never getting it back
June 24, 2018 – Marriage and divorce are provincial responsibilities, and credit splitting is mandatory in all provinces except B.C., Alberta, Saskatchewan and Quebec.
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