Personal Finance

Starting your CPP in Dec 2021 versus Jan 2022

  • Last Updated:
  • Nov 18th, 2021 1:00 pm
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Dec 12, 2012
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Starting your CPP in Dec 2021 versus Jan 2022

If you're thinking of starting your CPP soon, the figures are now finally available to help you decide between starting it late in 2021 or early in 2022.

Ignoring the enhanced portion of the CPP, if you start your CPP in 2021 in will increase b y 2.7% effective January 2022 as a result of the CPI increase from 2021 to 2022. On the other hand, if you start your CPP in 2022 it will be based on the 5-year-average YMPE ending with 2022, which is an increase of approx 3.3% over the 5-year-average YMPE ending in 2021.

Using maximum base CPP amounts as an example, a maximum CPP of $1,203.75 in 2021 will increase to $1,236.25 in 2022 with the 2.7% CPI increase. If you defer your CPP until 2022 however, the maximum base CPP will be $1,243.75. Not a huge difference, but when combined with the increased age-adjustment factor for being at least one month older in 2022, the approximate "breakeven period" for delaying your CPP start date to January 2022 from December 2021 is approx 6 years.

I just thought you might want to know.