OT-Canada Pension Plan. Anyway to calculate projected income from CPP?

[SandraC]

Hi All ~ Just me again....trying to figure out retirement. Is there anyway to calculate how much dh and I will get from CPP when we retire? Thanks! Sandra

 

[MaryannF]

I went to a retirement seminar recently and the presenter said that you can request CPP information at any time...
http://www1.servicecanada.gc.ca/en/isp/common/proceed/socinfo.shtml

 

[maryliz]

I was doing something yesterday on our company benefits website for projected pension, and it also gave predictions for CPP and OAS. To retire at age 60, it was approximately $500/month for CPP. But realistically, is CPP even going to be around by the time I hit age 60 ... in 18 years?

 

[MaryannF]

"A CPP retirement pension is a monthly benefit paid to people who have contributed to the Canada Pension Plan.
The pension is designed to replace about 25 percent of the earnings on which a person's contributions were based."--http://www.hrsdc.gc.ca/en/isp/pub/factsheets/retire.shtml

That $500.00 must be a general estimate. CPP benifits are based on how long you have worked, how much you made and how much you contributed to the plan. There is a cap on how much you can collect monthly.

 

[bigredsfan]

I was doing something yesterday on our company benefits website for projected pension, and it also gave predictions for CPP and OAS. To retire at age 60, it was approximately $500/month for CPP. But realistically, is CPP even going to be around by the time I hit age 60 ... in 18 years?

I don't think the pension plan is going anywhere too soon, it makes billions upon billions of dollars annually I am sure..

 

[OntFamily]

I was doing something yesterday on our company benefits website for projected pension, and it also gave predictions for CPP and OAS. To retire at age 60, it was approximately $500/month for CPP. But realistically, is CPP even going to be around by the time I hit age 60 ... in 18 years?

No worries about CPP being underfunded.

There was much fearmongering by some financial planners back in the 90's, as they were trying to scare people into buying extra RSP's (they kept telling people CPP woudl go bankrupt).

The Canadian Gov't raised both employer and employee CPP rates throughout the 90's. The system has been audited, and is fully funded (ie there will be money for you and I).

However, some of the rumours of CPP being underfunded come from south of the border. The US Social Security system is underfunded (the Social Security rates are kept artifically low), leaving some people to feel there will be a day of reckoning on this issue in the USA.

 

[KiKi Mouse]

The CPP plan won't run out because they don't have to pay out for people who die before they can collect.
Here's a story for you:
My best friend died in August. She was married but did not have any children (by choice). Her husband recently got a letter from CPP denying him death benefits because he was not 35 or over at the time of her death and they did not have children. She was 42 and had been paying into CPP for 25 years.
I know this isn't what this thread was about but I just wanted to get on my soapbox and tell people about how unfair the system is.

 

[brighteyes]

That is really unfair KiKi. She had paid into it, so just because they didn't have children he is denied. Talk about discrimination. Sheesh

Stephanie

 

[Ham Ham]

Depending on when you will reach 65 (from me its in 2027) and if you have a pension from your employer or have saved & invested money I'm sure the government will some how figure out how to swindle you out of any CPP you may be entitled too.

Look how difficult is to collect E.I the Tories have Billions in surplus.

 

[OntFamily]

The CPP plan won't run out because they don't have to pay out for people who die before they can collect.
Here's a story for you:
My best friend died in August. She was married but did not have any children (by choice). Her husband recently got a letter from CPP denying him death benefits because he was not 35 or over at the time of her death and they did not have children. She was 42 and had been paying into CPP for 25 years.
I know this isn't what this thread was about but I just wanted to get on my soapbox and tell people about how unfair the system is.

Just some context, as I once had a relative who received CPP death benefits (so I learned something about it).

There are three types of CPP Survivor benefits:
1) death benefit - paid to the estate - everyone who paid into CPP is eligible
2) Survivor pension - paid after age 60, is paid to the person who, at the time of death, is the legal spouse or common-law partner of the deceased contributor
3) Children's benefit is paid to a dependent natural or adopted child of the deceased contributor, or a child in the care and control of the deceased contributor at the time of death.

We may not know all the facts you have, but unfortunately is it seems if your friends spouse was under 35, he's about 25 years to early to apply for CPP. The survivor benefit is paid regardless of whether there is children.

Children's benefit is paid until the child turns 18 (or until 25 if he/she is in full time attendance at school).