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Figuring out what your CPP payment will be is an extremely complicated process, but these 3 calculators will give you a good idea of what it should be, assuming your situation is on the simpler side. If you are on CPP disability, the survivor pension, or have child dropout years, then these calculators probably won’t be as useful. In those situations, it will be helpful to reach out to Doug Runchey for his services at
Calculator 1:
Calculator 2:
Calculator 3:
Doug Runchey’s article on CPP’s formula:
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0:00 – Intro
0:44 – The Complexity of CPP
1:20 – Doug Runchey Article
2:44 – Calculator One
4:14 – Neo Financial
5:58 – Calculator Two
7:24 – Calculator Three
8:34 – Child Rearing Years
9:13 – We’re Trying To Make One!
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations – those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades….(read more)
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When it comes to retirement planning, one of the key components for Canadians is the Canada Pension Plan (CPP) payment. CPP is a government program that provides a monthly income to individuals who have made contributions to the plan throughout their working years.
To calculate your CPP payment accurately, there are a few factors that you need to consider:
1. Contribution Period: The CPP payment is based on the number of years you have made contributions to the plan. The standard calculation considers the number of years from the age of 18 to 65. However, there is a dropout provision that eliminates the lowest earning years from the calculation.
2. Retirement Age: The age at which you start receiving your CPP payment can affect the amount you receive. The standard age of eligibility is 65, but you can choose to start receiving your payment as early as age 60 or delay it until age 70. Starting before 65 will result in a reduction in your payment, while delaying it will increase your payment.
3. Average Earnings: CPP takes into account your average earnings throughout your working years. The amount is calculated by indexing your earnings to the current year’s maximum pensionable earnings and then averaging the indexed earnings over your contributory period.
Once you have considered these factors, follow these steps to calculate your CPP payment:
Step 1: Obtain your Statement of Contributions from Service Canada. This statement provides valuable information about your earnings history and the number of years you have contributed.
Step 2: Calculate your average earnings. Take your earnings for each year and multiply them by the corresponding Yearly Maximum Pensionable Earnings (YMPE). Then, divide the total by the number of years you have contributed.
Step 3: Apply the dropout provision. If you have contributed for more than 39 years, drop out the lowest earning years until you have 39 years of contributions.
Step 4: Determine the monthly payment at age 65. You can find the CPP benefit rates on the Service Canada website, which are updated yearly. Multiply your average earnings by the CPP benefit rate to get your estimated monthly payment.
Step 5: Adjust for early or delayed retirement. If you choose to start receiving your CPP payment before or after the age of 65, you will need to apply an adjustment factor. The adjustment factor is based on the number of months you start before or after 65.
It’s important to note that these are general guidelines, and the actual calculation of your CPP payment may vary. Factors such as disability, survivor benefits, and other income sources can also affect your CPP payment.
In conclusion, calculating your CPP payment accurately requires considering your contribution period, retirement age, and average earnings. By following the steps outlined above and utilizing the resources provided by Service Canada, you can estimate your CPP payment and plan for a financially secure retirement.
If one is 63 and in great health and shape, works in a low impact good paying job, and needs to continue working at least till 70 to pay down debt and save some more. Would it be a good idea to invest the OAS , starting at 65, and hold back the CPP / QPP, untill 70?
Hi Adam: I started collecting CPP at age 60, I had worked in Australia and paid taxes for 10 years (2004 to 2014) during that time I contacted Service Canada and received conflicting information regarding CPP payments while overseas, I was told by Service Canada that the taxes I paid in Australia could be used to “bump up my CPP “ while I was outside the Country, when I returned to Canada in 2014 I learned that Service Canada had lied to me about this.
My husband passed away, and he had 9 years of work I did the last income tax return for him , which means he had 10 years. Canada Pension doesn't want to pay me the survival benefits. Is this legal?
Bumping later works to the government advantage to pay less out in CPP pensions! Because how many men actually live to the age of 85 !
The process is complicated because the federal of Canada want to pay the least amount of pensions as possible!
Please help me sir. I have already applied.I am disabled. Thanks.Sir
do these calculators project forward? I have zero income years (2022, 2023 and expecting going forward – ie. retired). while I like the idea of delaying to 70 for the biggest payout, I'm adding all those zero years and already have 9-10 very low income years, less than $5000 (high school, university and poor business years). Wondering if in this case if averaging with additional 4-6 zero years will punish me more than 7%/year waiting to 70
Great info. I tried calculator #2 (from The Measure of a Plan) — it's an awesome tool!
Do you have a rep in Edmonton
I took my cpp at 60 and have to continue to contribute until I’m 65 will my amounts go up each year based on my continued contributions? Thanks
Thanks for the update, Adam. I have been waiting for your calculator and appreciate the info. I broke down today and waited over an hour on the phone to get the answers I needed for my future CPP payments. I needed to know the child rearing amount and the CPP amount based on the assumption that I would not be contributing after 2019. So glad to have this info and I know many people will be very happy with your suggestions and future calculator.
My CRA can tell you what you will get at 60, 65 and 70. My Service Canada Account > Canada Pension Plan/Old Age Security -> Estimated Monthly CPP Benefits. If you set up and account, it's all there
Thank you Adam! Your videos are amazing and so helpful!
Showed this to a friend, He said all those people that were on unemployment and that CERB are going to find out those years will not earn any credit toward the CPP , and those that paid 200 odd grand over their career to a work pension will find out those that didnt will make as much via the GIS. without paying
make thesoftware also includes CPP expansion calculation
My friend is 63 can she apply to get cpp or oas or what road is open for her please Fibre me some idea
Love your videos! I've recently heard about a part of CPP called the Post Retirement Disability Benefit (PRDB). Can you do a video about it?
Hi good day! I am hoping that someone can help me here. So I am the child beneficiary of a deceased contributor of CPP(my father) , I received a monthly pension. Someone told me that I can refund all the payments I paid in attending my school. Is it true or not? Please reply to this comment
I am a Canadian who worked in the state of Minnesota in the US for 10 years. I know that there is an agreement between Canada and the US. I am planning to retire and take my CPP at the age of 62. Should I (and will I be able) to apply for and get the US "portion" at the same time or should I wait until I reach the "normal" US retirement age to apply for the American "part" of my retirement?
Another great video, Adam. I will definitely check out the links you provided and will very likely reach out to Doug for some what-if scenarios. In my case, my wife will likely retire before 60 but we likely won't start CPP until 65, but I would like to know what that optimal age is, given child rearing and the early departure from the work force.
I am very interested in seeing a good DYI tool that would allow me to plug in our numbers and play with scenarios. I like this aspect of financial planning and prefer to do it on my own. Perhaps if you bundled it with a fee based support for questions, that would be the best of both worlds.
Could you calculate an estimate of what I could get for a combined survivors pension and regular cpp at 65. I'm widowed (since February 2019 and turned 57 in May of that year). I went through cancer treatments in March 2020, applied for and was approved for cpp disability about 4 months later. I currently receive $1024.90 for the combined survivors pension and cpp disability. And I turned 60 this past may.
Adam thanks for this I was looking for a way to estimate CPP. I got the calculator and downloaded the my contribution files ran the calculator couldn’t be easier
Feel free to give all these questions a pass Adam, but I do have the following queries regarding CPP:
a. If CPP calculates your pension based on your best 40 out 48 years of working, do you lose your worst three years worth of contributions if you
worked for 43 years? or do they still get calculated into your overall pension amount somehow? (I'm being kind of hopeful here)
b. Is working from day 1 of your 18th birthday until your last birthday at 65 considered 47 years or 48 years of working? (e.g. Chicago Bulls 3-peat:
1996, 1997, 1998 … 1998-1996 appears to be 2 years but is 3 championships) :0)
c. Finally, I work for two different employers. In one job I max out my yearly CPP contributions, and from the other, I get refunded my CPP
contributions on my tax return. The question is, does CPP allow you to apply the refunded over-contributions from the one job to top-up previously
non-max contribution years? I know this may sound unusual, who knowingly gives the government money, but hear me out. If you top up your
under-contributed years, you are getting an 8.4% return each year after 65 for 5 years.
Many thanks for all your other helpful videos.
Especially because of the added bonus of current inflation, it certainly feels that the best way to drive your CPP number up no matter what it is, is to delay to age 70 if you can find a way to do so.
Thanks Adam for these calculators. They are excellent tools which gives us a (very close or precise) good idea of where we stand w.r.t CPP. Wish there was one such tool or eminent people (for guidance) for QPP as I live in Quebec.
Depending on your current age, the age of retirement in Canada is increasing from 65 to 67. It's a gradual thing but for instance for someone born in August of 1959, they can't take cpp or oas until aged 66 plus 9 months. Makes a big difference for a lot of people.
Thanks for this info – have been looking for a tool to help with this calc. Question – I assume the dollar value on both Service Canada's site and generated with these calculators are in today's dollars, correct? So if I am 5 years away from age 65, I would multiply the amount calculated/shown by say 1.25-1.5% annually to get to the amount it would be in 5 years, correct?
I did the calculations on excel spreadsheet we did it in business university 1st yr. Its not that hard to make it and plug in figures and get a near accurate result where CRA is always a wrong estimate.
I just had Doug take a look at my CPP. He had my calculations done in 48 hours..and that was the weekend. Very impressive. My CPP calculation came in $15.25 less a month because of my non contribution years. Great resource thanks Doug and Adam.
Thanks Adam for pointing us in the right direction.
CRA really should have a calculator available online for this. They have all of our individual data and have the means to develop it.
Does anyone know if there's a CPP clawback if you will also be collecting US Social Security, albeit a small amount?
What program does cpp use?
So excited to see your DIY tool. I use eMoney currently, but its American, so has some issues. i can edit tax rates but not age i can access TFSA/RRSP as it characterises as IRAs
Thank you for these great presentations, they are helping me think things through. I have one question; You mentioned that no calculators YET can really accurately determine the effect of drop out options ie; child bearing years. So, how does the governments calculator figure it out?
Thanks Adam, would you clarify what is a ccp disability drop out? Does those years collecting it have a negative impact on amount when you switch over to regular cpp at 65
Always something practical and new. Keep up the extremely helpful work Adam and…your team too!
Extremely useful…as usual.
Hey Adam – given the current market slide since January, with expectations for recovery not believed to be forthcoming for a couple years, a video on your opinions regarding whether or not someone in their late 50's should be considering retirement early next year would be very useful. I know there are a lot of variables, but many of your subscribers may be at this crossroad in life and wondering whether to jump or face continued employment for a few years. A 15% drop in a person's portfolio is causing many, I believe, to question how they should be proceeding.
Hi Adam. I tried Doug Runchy's formula based method to calculate my CPP but gave up midsteam as it was too complicated for me. The calculators you present all provide a useful tool or predictor of CPP benefits but why not go right to the source! I retired this past January and don't plan to continue to work or contribute to CPP so the Service Canada estimate of my CPP is innaccurate for many of the reasons you discuss in your videos but mostly based on the assumption by Service Canada that you will continue to contribute to CPP up to the age of 65. I watched another video on CPP hosted by Aaron Wealth Management with a guest named Scott Edgington streamed on 20 Oct 2021. Again this topic was based on retiring early i.e. age 55 and calculating your CPP benefits. Scott recommended contacting Service Canada directly and asking them to provide an updated or customized estimate of benefits based no longer contributing to CPP. So in addition to logging in to Service Canada and printing my CPP estimate at 60, 65 and 70, I called Service Canada directly. Be patient as I was on hold for 30 minutes before getting through but it was worth the wait. I stated to the Service Canada agent that I recently retired in my mid 50s and would no longer contribute to my CPP and asked for a new estimate of CPP benefits. She stated that she could provide an updated estimate and put me on hold while she did the calculations. She then provided me with a new estimated monthly CPP amount from age 60 to 70 including each of the years in between. The updated numbers were less than what was posted on my Service Canada account but not too far off thankfully. SInce I didn't want to only have a verbal estimate, I then asked if she could follow up by sending me a pdf or sceenshot showing this new estimate. She said Service Canada will send me a formal letter in the next 30 days with this new estimate based on no longer contributing to my CPP (more drop off years) from now until age 65. I hope this helps others as I expect Service Canada would provide the most accurate calculations.
Thanks for the resources! It is a very difficult problem to solve.
Build a general purpose CPP calculator is not easy because there are some many variations / permutations. However if just want to calculate one's specific CPP, it is not that hard because the basic underlying principle is not complex. I calculated my own starting with a blank spreadsheet. The result is not identical to Service Canada's estimate, but difference is very small.
Well done Adam , I worked at least 15 years in Québec , is that going to be included in my CPP or it will be separate ?