How Much Income Will You Receive from CPP and OAS at retirement? Call Service Canada 1-800-277-9914 and ask for a CPP Statement of Contributions. They will provide you with access to your online statement.
You may think you will automatically receive the maximum CPP for retirement. Making that assumption is a mistake.
How to get the maximum?
Eligibility to receive the maximum CPP benefit is based on two criteria:
- Contributions – You must contribute into CPP for at least 85% of the time that you are eligible to contribute (between the age of 18 to 65, which is 47 years. 85% of 47 years is 40 years. If you don’t meet this criteria you will not receive the maximum. If you do meet this criteria you must also meet the second.
- Amount of contributions – Every year you contribute to CPP between the age of 18 and 65, you add to your benefit. To qualify for the maximum, you must not only contribute to CPP for 40 years but you must also have sufficient income
in each of those years. CPP is calculated using the Yearly Maximum Pensionable Earnings (YMPE) to determine whether you contributed enough.The most recent minimum income levels are noted below. If you earn less than this amount in that year you will not count for CPP.
Year YMPE 2017 $55,300 2016 $54,900 2015 $53,600 2014 $52,500
For those parents who worked part-time and collected the Child Tax Credit while raising children you can contact Canada Pension to adjust your file. This will improve the pension income ranking.
OAS Full pension
You may qualify for a full OAS pension in one of two ways:
- You resided in Canada for at least 40 years after turning 18; or
- You were born on or before July 1, 1952, and
- on July 1, 1977, you resided in Canada, or
- after turning 18, you resided in Canada for a period of time prior to, but not on July 1, 1977, or
- on July 1, 1977, you possessed a valid Canadian immigration visa.
In addition, you must have resided in Canada continuously for the 10 years immediately before the approval of your OAS pension. If you were absent from Canada during that 10-year period, you may still qualify for a full pension. Contact their office for more details in Canada and the United States Toll-free: 1-800-277-9914.
Once you know you have contacted offices to collect the CPP and OAS amounts you can use this tool to calculate your total retirement income.
If you have a gap in income you need to talk to your financial planner and if you are a home owner contact your mortgage broker for options.