Personal Finance

Max CPP retirement pension for 2014

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  • Dec 21st, 2013 11:59 am
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Dec 12, 2012
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Courtenay

Max CPP retirement pension for 2014

Now that Revenue Canada has announced the 2014 YMPE (Year's Maximum Pensionable Earnings) for CPP as being $52,500, it is possible to calculate the maximum age-65 CPP retirement pension for 2014, and it will be $1,038.33.

Service Canada probably won't officially release this rate until sometime in December, but it's a simple calculation once you know the 5-year average YMPE ending in 2014 (the new 5-year average is $49,840). From that figure you simply divide by 12 and multiply by 25%
($49,840 / 12 x 25% = $1,038.33).

Using this same 5-year average YMPE of $49,840, it's also possible to calculate how much each year of max earnings will generate towards an age-65 CPP retirement pension in 2014, and the answer is $26.62 monthly ($49,840 / 39 yrs / 12 mths x 25% = $26.62).

You read it here first!!!
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