Hi,
I have moved in Canada a few months ago as a permanent resident. I am 41 yo now. By the time I retire, I'll probably be working here for 15-20 years, at least, the the retirement age does not go beyond 60. Suppose I find a job in which I earn 45,000 CAD net. When I retire, how much per month approximatively, can I expect in terms of monthly pension?
Thank you in advance for your reply.
Raph
There are FAR to many variables to determine how much you would receive when you retire. How long you worked in Canada, how much you made in each of those years of working, were you self employed, were any of those years were you unemployed, did you continue working past 65 AND continue contributing to CPP, did you contribute the maximum contributions, did the person elect to start taking pension earlier than 65, or later to maximize how much they could receive ?. Someone who made the maximum CPP contributions over the course of 40 years of working would of course have a higher pension then lets say someone who started contributing at 40. As mentioned above, CPP should only be considered as supplementary income when someone retires. You should also be saving on your own in RRSP, TFSA plans, or if someone is lucky these days, have a pension plan set up by their employer, where you also make contributions. Or the savings you possibly would have accumulated prior to arriving into Canada.
There is a calculator online, that once you verify you who are, it gives an estimate based upon the contributions you have already made into the plan. Since you are new to Canada, it would not give an accurate picture since you have not contributed.
It is ALWAYS better to start saving now on your own, and not depend upon what government policy could change in the future.
Btw, the typical retirement age for CPP purposes is 65, starting earlier then that will result in a lower amount, starting at lets say 68, will result in a higher amount. based upon what you contributed to the plan
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html
The Government has recently increased the CPP contribution amounts, it is now called CPP enhanced, which is intended to increase the benefits and safeguard the system for future applicants
