What is the actual CPP Benefit calculation formula?
I recently used Service Canada's CPP Benefit calculator and am skeptical of the results so I would like to perform the full calculation myself.
It allows you to provide assumptions about how much you would make from now until age X, and then from age X to 65.
When I assume $0 from now until 65, my monthly benefit is $847.
When I assume $48,300 (max) from now until 65, my monthly benefit is $916.
I'm shocked at how little continuing to pay into CPP for another 17 years will impact the benefit amount.
Does anyone know what or where the actual formula is? Couldn't find it via Google searches.
Thanks.
It allows you to provide assumptions about how much you would make from now until age X, and then from age X to 65.
When I assume $0 from now until 65, my monthly benefit is $847.
When I assume $48,300 (max) from now until 65, my monthly benefit is $916.
I'm shocked at how little continuing to pay into CPP for another 17 years will impact the benefit amount.
Does anyone know what or where the actual formula is? Couldn't find it via Google searches.
Thanks.
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