New Financial Planning Data for 2016

A new year means new limits and data.  Here’s a list of new financial planning data for 2016 (In case you want to compare this to past years, I’ve included old data as well).

Pension and RRSP contribution limits

  • The new limit for RRSPs for 2016 is 18% of the previous year’s earned income or $25,370 whichever is lower less the Pension Adjustment (PA).
  • The limit for Deferred Profit Sharing Plans is $13,005
  • The limit for Defined Contribution Pensions is $26.010

Remember that contributions made in January and February of 2016 can be used as a tax deduction for the 2015 tax year.

Tax YearIncome fromRRSP Maximum Limit
20162015$25,370
20152014$24,930
20142013$24,270
20132012$23,820
20122011$22,970
20112010$22,450
20102009$22,000
20092008$21,000

Financial Planning Calculation
More articles on RRSPs

TFSA limits

  • The TFSA limit for 2016 is $5,500.
  • The cumulative limit since 2009 is $46,500

TFSA Limits for past years

  • $5000 for 2009,
  • $5000 for 2010,
  • $5000 for 2011,
  • $5000 for 2012,
  • $5500 for 2013,
  • $5500 for 2104,
  • $10,000 for 2015 (new 2015 Federal Budget)
  • $5500 for 2016 (new Liberal Government)

More articles on the TFSA

Canada Pension Plan (CPP) data

Lots of changes are happening with CPP but here’s some of the most important planning data.

  • Yearly Maximum Pensionable Earning (YMPE) – $54,900
  • Maximum CPP Retirement Benefit – $1092.50 per month
  • Maximum CPP Disability benefit –  $1290.81 per month
  • Maximum CPP Survivors Benefit
    • Under age 65 – $593.62
    • Over age 65 – $655.50

2016 Reduction of CPP for early benefit – 0.6% for every month prior to age 65.  At age 60, the reduction for 2016 is 36%.

CPP rates for past years:

  • 2016 – $1092.50 per month
  • 2015 – $1,065.00 per month
  • 2014 – $1,038.33 per month
  • 2013 – $1,012.50 per month
  • 2012 – $986.67 per month
  • 2011 – $960.00 per month
  • 2010 – $934.17 per month
  • 2009 – $908.75 per month

For more information on CPP

Old Age Security (OAS)

  • Maximum OAS – $570.52 per month
  • The OAS Clawback (recovery) starts at $72,809 of income.  At $118,055 of income OAS will be fully clawed back.

OAS rates for past years:

  • 2016 – $570.52 per month
  • 2015 – $563.74 per month
  • 2014 – $551.54 per month
  • 2013 – $546.07 per month
  • 2012 – $540.12 per month
  • 2011 – $524.23 per month

For more information on OAS Clawback:

New Federal Tax Brackets

For 2016, the tax rates have changed.

  • $0 to $11,474 – Personal Exemption
  • $11,475 to $45,282 – 15% marginal tax rate
  • $45,283 to $90,563 – 20.5% marginal tax rate
  • $90,564 to $140,388 – 26% marginal tax rate
  • $140,289 to $200,000 – 29% marginal tax rate
  • Over $200,000 – 33% marginal tax rate (new bracket added)

Remember these rates do not include provincial tax.

For new provincial rates, visit the CRA site

Provincial tax rates are also subject to change when the Federal and provincial budgets are released later in 2016.

For more information on tax rates

 

Written by Jim Yih

Jim Yih is a Fee Only Advisor, Best Selling Author, and Financial Speaker on wealth, retirement and personal finance. Currently, Jim specializes in putting Financial Education programs into the workplace. For more information you can follow him on Twitter @JimYih or visit his other websites Group Benefits Online and Advisor Think Box.

One Response to New Financial Planning Data for 2016

  1. Jim the above numbers show a TFSA limit of $5500 for 2015, did that not change to $10,000.
    Please confirm and thank you for posting all this info in one spot.

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