Understanding the CPP post retirement benefit
What are post-retirement benefits?
The CPP post retirement benefit (PRB) program allows Canadian who are receiving the CPP but still working and contributing to the CPP to receive additional benefits for their contributions.
The program started in 2012 and the first PRB payments were made in 2013.
Previously, once you started receiving CPP retirement benefits, you could no longer contribute to the CPP. Now:
- If you are between 60 and 65 years old, receiving CPP and still working, you must contribute to the CPP.
- If you are between 65 and 70 years old, receiving CPP and still working, you can choose whether to contribute. (To stop contributing, you must fill out a Canada Revenue Agency form.
Between 60 and 70, if you are receiving CPP, working, and contributing to the CPP, you will earn a PRB for each year of your contributions.
How do I get a PRB?
You don’t need to apply for a PRB; you will automatically receive it the year following your year of contributions. Your PRB is effective in January but you may not receive the payment until April or May, with a retroactive payment to January.
The PRB will be added to your monthly CPP pension, even if you are already receiving the maximum CPP retirement amount. The PRB payments will continue for the rest of your life. They are indexed to the cost of living, the same as the regular CPP retirement pension.
Each additional year that you continue working and contributing after you start collecting CPP will earn you a new PRB that will be added to your monthly CPP benefit the following year.
How much will I receive?
The amount of PRB that you will receive depends on your earnings and your age.
If you are 65, the maximum monthly CPP pension that you can receive in 2015 is $1,065.00, and the maximum monthly PRB is about 1/40th of that, or $26.63. The maximum annual PRB is $319.56.
If you are any age other than 65, both CPP and PRB amounts are adjusted — reduced before 65 and increased past 65. Below age 65, both CPP and PRBs are reduced by a factor of 6.96 per cent per year (.58 per cent per month). Above age 65, they are increased by a factor of 8.4 per cent per year (.7 per cent per month). (These percentages are for 2015. The below-65 numbers will change slightly until 2016; the above-65 numbers will not change.)
How does it compare to my contributions?
Using a maximum contributor as an example, we can look at the numbers.
In 2015, a maximum contributor makes an annual contribution of $2,479.95 to the CPP. (A maximum contributor is a person who earns more than the Year’s Maximum Pensionable Earnings (YMPE). For 2015, the YMPE is $53,600.)
If this maximum contributor is 60 years old, and is collecting CPP retirement pension and still working, their contributions will earn PRBs:
- Their first year of contributions earns a PRB of about $228 annually, indexed, for life.
- Their second year of contributions earns a PRB of about $251 annually, indexed, for life.
- Their third year of contributions earns a PRB of about $274 annually, indexed, for life.
- Their fourth year of contributions earns a PRB of about $296 annually, indexed, for life.
- Their fifth year of contributions earns a PRB of about $320 annually, indexed, for life.
At the end of the fifth year, their total PRBs will be about $1,369 annually, indexed, for life.
Their CPP contributions for the five years 60 to 65 would have been $12,400.
In return for these contributions, if they live for 20 years past age 65, they will receive approx $27,380 in PRBs, plus what they received during the four years from 61 to 65 (approx $2,509) for a total of $29,889.
All numbers are approximate, are for a maximum contributor, and are in 2015 dollars.
For a 65-year-old maximum contributor, the PRB payback is a return of about 13% per year, indexed, for life. (Maximum PRB of $320/maximum CPP contribution of $2,479.95 = 12.90%).
For a self-employed person, who must pay both employee and employer portions of the CPP, the return is half that of an employee.
Two situations where payback is better
There are two situations where the payback for PRBs is even better than for most contributors, and that’s for a low wage earner or someone nearing age 70.
No one contributes to the CPP on the first $3,500 of their income (the Year’s Basic Earnings). So in effect, a low wage earner is contributing less than 4.95 per cent of their overall earnings to the CPP (4.95 is the percentage of their earnings that employees currently pay into the CPP). For example, a fictitious person who earned $3,501 would contribute $0.05 to the CPP for the year. Their PRB the following year would be about $1.75 per month or $21 per year.
If a contributor is nearing age 70, their PRB will be increased by 42% (8.4 per cent x 5 years or 60 months x 0.7 per cent). (This is the post-65 increase that is applied to both the CPP and PRBs, as described earlier.) So a maximum CPP contribution of $2,479.95 will earn a monthly PRB of approx $37.80 ($26.63 x 142%) — or about $453.60 per year indexed for life. This is a return of $453.60/$2,479.95 = 18%.
To stop contributing
If you are over 65 and want to stop contributing to the CPP, you must complete the CPT30 form and give a copy to your employer. If you are self-employed, you must complete the appropriate section of the CRA CPP contributions on Self-Employment and Other Earnings and file it with your income tax return.
You can change your mind and start contributing to the CPP again but you are allowed only one change per calendar year.
What happens if you delay CPP to 70? (My plan)
Do you still earn PRB if you contribute before then? From working on a consulting basis &/or employment)Such as at 63 or 67.
Retired at 57.
Sorry, but PRBs are only payable on earnings and contributions after you start receiving your regular CPP retirement pension. If you wait until age 70 to apply for your regular CPP retirement pension, all earnings will be considered when that is calculated, instead of going towards PRBs.
I am trying to determind whether to take my CPP early.I am planing to work until I am 65
I am turning 60 in June 2014.I have 35 yrs max contibutions to CPP and 5yrs of 50%contributions to CPP. What do you estimate my CPP at 60?
What will my PRB be if I continue to work until 65 with max CPP contibutions?
If you already have 35 years of max contributions, you will be eligible for a max age-60 CPP retirement pension of $689.45 (66.4% of $1,038.33).
For every full year of max earnings that you have after starting your CPP, you will earn a PRB of approx. $26/mth starting the following January, but reduced by your age-adjustment factor as of that January.
I am going to be 60 and will continue working will receive 640.00 a month if I collect. I will continue to pay cpp and will be making 47000.00. should I collect and if I collect cpp what would prb be?
It’s impossible to advise you when you should collect your CPP without further details.
Here’s a weblink to a PRB calculator: http://www.servicecanada.gc.ca/eng/services/pensions/cpp/prb/index.shtml
I retired at beginning of year 2013 and did not have contribution since. I plan to apply for CPP when I turn 65 around Sept. In addition, I had stayed home in 1997 and 2008 for 2 years. so
(1) what is the impact of my CPP payment in 2016 with those years where there were no CPP contribution.
(2) As I turn 65 in Sept 2016, which is the best month for applying CPP payment?
(1) At age 65, the general 17% dropout means that your lowest 8 years of earnings won’t be counted against you. If you only had those 2 years of low earnings (plus 2014, 2014 and 2016), they won’t have any impact on your CPP payment at all.
(2) You can apply up to 12 months in advance, but it usually only takes Service Canada 3-4 months to process a CPP retirement application.
Doug: interesting, but it seems to me
1. contribute for more than 39 years at max
2. plan to work to 70 – either collect my CPP at 65 and then pay into a PRB plan or
3. do not collect CPP, do not contribute into CPP, and collect at 70 so my CPP increase by about 5,000 pa (correct?)
If I live for 20 years my increased CPP under scenario 3 is 20 x 5,000 or 100,000 in increased CPP in 2015 dollars. plus the benefit of my non contributions to CPP into other investments.
Impossible for the PRB scenario to come close to that gross benefit (2,500 or so pa for 20 years less contributions).
Or am I missing something – it seems to me this PRB is for folks who are missing the 39 year cap.
Unfortunately scenario #3 is not a choice that you have, as you can only elect not to contribute to CPP if you are over age 65 AND receiving your regular CPP retirement pension.
hi what is the address or phone i use to contact to have my pension deposited to a different acct. and bank..
The phone# for Service Canada is 1-800-277-9914.
Thank you for the information. I thinks it was informative,how ever it is only for the wealthy or hi income earners and does nothing for the average low to middle income person. I just got my infor letter from Services Canada today and after working fifty years of my life, I recieve a whopping $.44 cents a month. This is a total waist of taxpayer money, it costs more then .44 cents to do the paperwork and write a check or electronicaly transfer moneys and for all the letters that go out well that is another buck or more each. All for an amount that is staggering to comprehend. And I am sure that some how they are already working on how to make it a taxable benefit and then get more back then they give
I thought that the PRB was a plan to help low income earners get a better pension benefit. Fortunately I enjoy my work but am continuing to work over age 70. The benefit calculation is based on living another 20 years. What if you only live 5 or 10 years more? If you have not been repaid what you and your employer put in, does your estate get it back? I guess I am an optimist because I am signed up for PRB.
The payback for PRB contributions is much shorter than 20 years, but if you die before that payback period your estate does not benefit. If you are age 70 or over though, you cannot make any further CPP contributions.
In August I became 67, planning to work till 71…
I am not sure if to begin now receiving my CPP and apply to PRB or to just wait and cash the monthly CPP at 70, with the 42% increase (I would receive $780 including the 42%) …I have already contributed 25 years to the CPP maximum amount .
If I receive the CPP now, I would have to return it? (my salary is 96K)
What is more convenient for me?
Ana – I recommend that you wait until you stop working or until you reach age 70 before you apply for CPP.
thank you, Doug… you reassured me on my decision.
I just turned 65 and started to collect my CPP(the maximum amount ).
I continue to work and plan to do so for another 3years.
I am trying to decide if a post retirement benefit is worth the money I would continue to invest in the plan.
My understanding is that I would continue to pay the maximum CPP amount of 2479.95 for an annual PRB of 320 per year.is that correct?
I feel like I am missing something here.Why would I do this?
Wouldn’t I be better off to take this money and invest it in a TFSA or other investment?
Marilyn – My purpose in writing this article was just to present facts and not to convince you of anything. I consider the PRB to be a pretty good return on your investment, but If you think that you can get a better ROI elsewhere (such as a TFSA) then by all means complete the CPT30 form to opt out of making any further contributions.
If you can, try and negotiate with your employer to give you some of the cost saving they get by you deciding to opt out of future CPP contributions.
If you are an employee and have no control over what happens with the employers contribution (Use it or lose it) , the PRB is a fantastic deal.
13% indexed – based on your tax deductable contribution of 2480.00.
Just try buying an annuity and you would get (F age 65, no guarantee period and) about $143 per year and it won’t be indexed. (Source RBC annuity calculator)
Consider continuing with the PRB and using other money to fill your TFSA.
I have a question regarding the survivors benefit calculation.
In my monthly CPP amount includes a PRB that is growing each year as I continue to work. When I die will the PRB be included in in the base to determine my spouse’s Survivor Benefit or will it be excluded from the base. My basic pension is slightly below the maximum CPP but with my PRB it is at least 70 higher and growing as I continue to work and contribute.
The reason this is important is my spouse’s CPP if she takes it today at age 62 is only 400 per month. It would seem to me that best time to activate her CPP is when she would qualify for a CPP amount of 445 per month (1114.17 – 668.50 in the case of this year). She will continue to work after activating her CPP and any contributions after that should be considered a PRB and not included in the maximum survivors calculation. She would receive CPP basic monthly maximum (1114.17 in the case of this year 2017) plus her PRB.
If the base includes my PRB then it would seem she should activate her CPP even sooner. I am thinking we should be able to lower the that amount to 403 (445-(60%x70)) per month.
We are approaching this on the assumption that she will live to at least 82 years old.
Does my reasoning and calculations make sense.
Hi Paul – The answer to your first question is easy and short, and that is that the PRBs do NOT count toward your Survivor’s Benefit. The answer to your second question is very complex and you should read this article: https://retirehappy.ca/cpp-survivor-benefits/
Email me at [email protected] if you have any further questions.
I have just turn 69 And working for an online company.
I started collecting my CPP at age 60 because I needed the money for family medical issues.
I turned 65 in mid Mar. of 2013 & continued paying CPP as did my employer until I opted out in Apr/2016. Between Apr/2013 & Mid Apr/2016 I paid $7931. in CPP contributions as did my employer. By your calcs above, that should have guaranteed me $750ish/year in PRB’s. Today I got a letter from Service Canada informing me that I am entitled to a PRB of $12.21/month. At that rate I will be just over 123 years old before I recover what I paid into the CPP Post Retirement plan, nevermind what my employer paid in.
What am I missing here? Or, is this the NEW Math I keep hearing about?
John – You should have received your first PRB effective Jan 2014, your second effective Jan 2015, your third effective Jan 2016 and your fourth effective Jan 2017. They are cumulative an should total far more than $12.21.
Doug: I am 66 years old, not applied for CPP, self employed, paid $5088.60 CPP contributions on my 2016 t-1 return, planning to defer receipt of CPP to age 70 to get the 42% bonus. My service Canada Account says if I were to start receiving CPP now I would receive $1163.90. At age 70 receive $1,505.23. Question: is it beneficial to continue to contribute CPP on my tax return or should I opt out by filing CPT30 form. Will it make any difference to my benefit? Is the PRB amount in addition to the to the extra 42% I will receive by deferring receipt till age 70? Not sure I understand. Thanks for your advice.
Hi Ron – You only have the option to complete the CPT30 and opt-out of making CPP contributions IF you’re receiving CPP. So, if you’re going to wait until age 70 to apply for your CPP in order to get the 42% increase, you must continue to contribute and you won’t receive any PRBs (because you aren’t receiving your CPP yet) and your CPP won’t increase much (because you’re already quite close to the maximum).
I saw in the Globe and Mail, twice in the past four (4) months, articles from Morneau Shepell’s chief actuary where he commented on this failure within the CPP – at 65 where one has reached the maximum potential of the CPP (as I have), continue to work and must contribute to the CPP without any increasing benefits. In effect, anyone working past 65 is being penalized twice despite working longer is very good for the Country: paying into the CPP without increasing benefits or receiving CPP and paying tax at the top marginal tax for the pension.
The CPP is neither a defined contribution nor a defined benefit program. It really needs to be cleaned up.
Hi Robert – The trigger for this “unfairness” isn’t having to make CPP contributions after age 65, it’s having to make CPP contributions after you have already made 39 years of maximum contributions (which can happen by age 57). If you’re over age 65 but have fewer than 39 years of max contributions, making another year of max contributions will increase your CPP. But if you’re as young as age 57 and you have 39 years of max contributions, making another year of max contributions won’t increase your CPP at all.
I have just turned 65 and am still working. I have not yet applied for CPP and am debating whether it is more advantageous to take CPP now and have contributions go to post retirement benefit (had some years but not all at maximum) or to delay and have a higher pension based on the .7% increase/month over age 65? I plan to work for about two more years. Your thoughts and reasoning behind it would be greatly appreciated.
Hi Elizabeth – To me the answer depends on your individual numbers, and I would need to do some actual calculations for you. My fee for this service is $50 for the first two choices that you want to look at, and $10 more for each additional choice(s). For example, to calculate and analyze your 6 yearly choices from age 65 to 70, my fee is $90. If you’re interested in this service, email me at [email protected]
Hi Doug, I am really confused. I am 65 and a month old, I applied for CPP last fall and got the letter. However, I am still employed. Sine I still make CPP contributions, should I ask for deferral (cancel the current application), apply at a later date (say in 1-2 years), benefit from a fresh new CPP calculation, or let it be the way it’s been calculated and accept the additional PRB ? Let’s assume the income is 50k. Which way would be more beneficial, amount wise? Thanks
Hi Tony – You will definitely receive a higher monthly amount if you cancel and reapply later, but which choice is better will depend on how long you live. If you want me to do some calculations for me (for a fee), email me at [email protected]
Reading with interest.
Max contribution reached
Working full time
6 figure salary
Q. Do I apply for CPP now, thereby crystallizing my pension amount and continue cpp contribution with this contribution going toward the PRB, which by the way seems to generate a 12%plus return and higher factoring in cpp contributions are tax deductible; or, continue cpp contributions without any benefit other than letting my pension increase 8.4% p.a.?
Hi Lorne – If you already have at least 39 years of max earnings/contributions, you’re right that your CPP won’t increase any further except for the 8.4% increase for every year of delay. My only concern with taking your CPP now though, is that it’s adding to your taxable income on top of your 6-figure salary, so how much of that are you really keeping after taxes? Depending on what other income(s) you have after you stop working, even though your contributions are somewhat wasted, you might still be better off waiting to take your CPP. Sorry, but I don’t have a better answer for you than that.
I will be 65 on Nov 1, 2018. I have contributed max 40 years in 2017 and plan to work to age 67 .. 2 more years.
I am deciding whether to take my CPP at 65 or wait 67.
From the reading …
If I were to take my CPP at age 67, any CPP contribution would not increase my CPP because I have max 39 year max on CPP.
IF I were to take my CPP at age 65 any CPP contribution to 67 would result in a monthly PRB which would benefit me only if I am living and can not be passed onto the spouse.
Hi Tom – Yes, both of your statements are accurate!
Question. If I elect to start my CPP at age 67 and continue working. Do I have to contribute to CPP after 65 and what is max contribution amount?
Hi Tony – No, if you’re receiving your CPP retirement pension and if you’re over age 65, you do not have to make any further contributions to CPP but you do have the option to do so. Read this article to understand the mathematics of this decision: https://retirehappy.ca/contributing-to-cpp-after-age-65/
CPP does increase from 65 to 67 at 0.7% per month or 8.4% per year because of the deferral on collection. by deferring collecting CPP to 70, the CPP payout increases by about 42%%, that correct Doug? there is also a COLA increase each year so it is likely the CPP will be more than 50% higher by deferring collecting CPP until 70. The cost is that the employee must pay into CPP each and every year even though the contributions do not increase the earned CPP. at better option may be to shift from an employee to a CCPC sub contractor, but there are CRA issues to consider. or am i mistaken?
Hi Robert – Yes, the net amount of the CPP will always increase by 0.7% per month over the age-65 amount, with or without making additional contributions if someone defers taking their CPP until after age 65. You’ve also touched on another issue when you mention COLA. If you apply for your CPP at age 65 (or any other age), it will be indexed thereafter by increases in prices as measured by the CPI. If you defer your CPP, it will be “indexed” by increases in wages (as measured by the YMPE) and historically that has generally exceeded the CPI increase.
I’m not sure why anyone would want to shift to a sub-contractor status, whereby you would become responsible for both the employee’s and the employer’s share of CPP contributions?
If I retire at 60 and wait until I am 65 to take my pension does it still go up if I am no longer
Earning and contributing I have been in Canada 20 years
Hi Steve – Your “calculated CPP” will go down by approx. 10% because your 20 years of earnings will be averaged over a longer period, but your “actual CPP will go up because you’ll receive 100% of that lower amount at age 65 instead of 64% of the higher average at age 60. I refer to this situation as receiving a larger slice of a smaller pie if you wait, but you’ll always get more pie by waiting.
Hi Doug. I am 62 drawing CPP of $780 a month. I am working part time making about $10 000 a year. do you know approximately how much PRB I would receive?
Hi David – Your PRB should be approx. $4 – $5 per month.
I just turned 60 and am still working making approximately 55 k a year. I am hoping to work until age 65. I am considering taking my pension early and using it to pay down the mortgage on my house. Does this seem like a good idea to you? Also I was told that my pension would be topped up by OAP to make up most of the difference lost by taking it early. Is that true?
Hi Teresa – Paying down debt could be a good reason for taking your CPP early, but you should crunch all your numbers thoroughly. OAS won’t top up any of your “lost” CPP, but GIS will offset about 50% of that loss if you’re eligible for GIS.
My birthday is in March and I start getting CPP payment in April of the year I turn 65 (2020). If I earned the maximum PE for 2020 how is the PRD calculated? Is it the maximum amount of PRD times 9 divided by 12 to reflect the amount of the year I worked after starting the CPP payments? Is it the actual amount of PE earned after March?
Hi Jim – If your earnings for 2020 will exceed the YMPE 3/12ths of the YMPE will go towards your regular retirement pension calculation and 9/12ths will go towards your PRB, so the amount will be 9/12ths of the maximum PRB increase by your age-adjustment factor as of January 2021.
Hi Doug- Let’s say I retire at the age of 66 in June 2024 with 30 years of Max contributions, and 9 years of 80% contributions.
Let us say in June 2024 Max CPP pension amount is $1,300.
(1) Any idea how much I would get with my facts?
(2) Would I also get 8.4% extra by delaying it to 66?
(3) Would I also get some additional $ for Enhanced CPP?
Your thoughts would be highly appreciated.
(1) Your “calculated CPP” would be approx. 37.2/39 x $1,300
(2) Yes, your calculated CPP would be increased by 8.4% for delaying the start date by one year.
(3) Read this article: https://retirehappy.ca/enhanced-cpp/
First I want to say the information here has been great.
I would like to see if my line of thinking is correct for me.
When I turn 60 in April 2021, I would receive (at todays dollars) approx me $716 after receiving a $402 per month penalty, (General rules were applied in this calculation) Over those 5 years I would collect approx, $42420.
If I continued working until age 65, I would receive another roughly $29 per month per year X 5. So at age 65 I would have another $145 per month added to my CPP benefit. Again this is 2019 dollars.
My thinking is that my breakeven point would be $42420/($402 less $145) or 159 months. That is also assuming I put the entire CPP Benefit into an RRSP (that would mean no current tax implications) at a zero percent return. My breakeven would actually be further down the road with any kind of return
Doug does this sound correct?
Hi Dwayne – Your PRB numbers are probably a little bit high, because $29 would only be the result for the year that you turned age 65 and the previous years would each be reduced by the age-adjustment factor as of January of the year following the earnings. Aside from that, your reasoning is correct.
Thanks for the great information.
What happens if a sponsored person immigrated after 65, started working, and there is no agreement with the country he came from?
Will his CPP contributions count to CPP or to PRB? Can he choose not to contribute (the CRA form doesn’t allow to continue if no CPP?
Hi Zak – The CPP contribution would count towards his regular CPP retirement pension. After the one year’s contribution is made, he could apply for a CPP retirement pension (if he wanted) and then he would have the option to not contribute any longer or to contribute and earn PRBs.
Doug, thanks a lot!
Generally speaking is it better to continue working and aggregating CPP contributions to apply later for CPP, or to apply ASAP and start aggregating PRB?
Hi Zak – It would depend on the person’s lifetime record of CPP earnings, but in this case it would clearly be better for him to wait until he stops working or turns age 70.
Thanks a lot!
Just to make sure the person starts at 68, contributes to CPP for 1 year 4 months from 30K, then reaches 70. Will he qualify for CPP without any prior contibutions? What would it be, approximately?
Hi Zak – In this scenario, the CPP retirement would be approx. $31 per month at age 70.
Based on what is mentioned, PRB is about 1/40 of CPP benefits which is about 2.5% of CPP benefits if I continue to contribute while working after taking the CPP beneifit at age 65, however if I chose to delay my CPP benefits for one I stand to gain about 8% more. Not sure I understand why we can take the first option
Hi Abdul – I don’t understand what it is that you don’t understand?
I just retired as of Jan.1/2020 and decided to take my CPP right away (I am 62 years of age). I have been called in to help out the company I retired from (through a contract company – Orion Group). It will be a short stint of one month, maybe two months. I will being paying into CPP while working. Can I claim those CPP contributions come tax time, or would I get a bump up in my CPP payments? Or what would happen (options?)?
I would appreciate your feedback on this issue.
Hi Mark – Was your first CPP payment effective January 2020, or what date?
Hi Doung, thank you for all your work much appreciated. Say I start CPP after I turn 65 May 2
020 and continue contributing Does it matter the birthday month for the first payment of PRB? If the birthday is in May is January 2021 still the first payment before the person turns 66.
Hi Yolla – No, your birthdate doesn’t affect when you will receive the first payment of PRB. PRBs are always payable effective January of the year following the earnings, although you won’t receive the first payment until approx May or June (retroactive to January). For 2020, any earnings that you have up to $24,458 (5/12ths of the 2020 YMPE of $58,700) will be used to calculate your regular CPP retirement pension, and any excess will be used to calculate your PRB. This is true regardless when in 2020 you actually earn that income.
I will be turning 65 in March 2021. I have 40 years of max contributions to my CPP under my belt. I have no plans to retire just yet, and do not plan to start my CPP payments yet either. Is there any benefit to me in continuing to make CPP contributions, for example – would they qualify towards PRB benefits when I do decide to retire. In your opinion what is the most beneficial plan for me going forward.
Hi Alan – If you are going to defer the start date of your CPP past age 65, there is no other choice involved because unless you are receiving your CPP retirement pension, contributions are mandatory until age 70. And you won’t earn any PRBs for those contributions, because PRBs are only payable on contributions made after you start receiving your CPP retirement pension. As to whether there is any benefit to making additional contributions after you already have 40 years of max contributions, until 2019 when the “enhanced CPP” began, that answer used to be a simple “No”. Under the enhanced CPP, until you have 40 years of maximum enhanced contributions (you’re never going to get that far), every year of maximum enhanced contributions will at least increase your pension by the enhanced portion. This isn’t a huge increase for each year of max contributions (approx $10 per month once we’re through the enhanced transition period in 2023, and proportionately less until then), but again there is no choice involved if you want to defer taking your CPP in order to get the increase of 0.7% per month past age 65.
If you did decide to take your CPP, once you are over age 65, you would then have the option to stop contributing or to contribute and earn PRBs.
Could you please comment on the post-retirement benefit re: self-employed individuals? Both my husband and I are self-employed, are 65 and 67, are still working and both receiving CPP. At what point does it not make sense to keep contributing to CPP given that we each pay both the employee and employer premiums?
Hi Melanie – it almost never makes sense for self-employed individuals to make CPP contributions in order to ear PRBs.
The last two years, my retroa-active PRB amts. have been deposited to my account with the relevant monthly CPP increase noted as well in March.
Any idea when they will appear this year? Already May and still not in my account, not sure why such a delay considering my tax refund has arrived weeks ago.
Hi David – I haven’t heard anything about delays with PRBs, so I’d be calling Service Canada pretty soon if it doesn’t arrive pretty darn quickly.
Took some time, but finally my PRB is posted to my account to be paid in early July. Even enlisted the assistance of my local MP to look into this for me. lol
Hi David – Gudonya!!!
I’m currently 60 and plan on working until 65, my wife has only worked 5 years and has no pension, right now it shows I can get $800 a month starting next month and if I pass away my wife gets $680, my question is does the PRB transfer to my wife like the CPP does, I was thinking about taking CPP right now and putting it into a spousal RRSP what’s your thoughts on this, I also have a union pension that will get me $2000 at 65 and will also leave my wife that a month
Hi Bill – To answer your first question, No, PRBs will not transfer to your wife as a survivor’s pension. They will expire when you die. I don’t really have an opinion on your second question.
I am planning to work until 70. How to decide if it is better to
A. Not to take CPP before 70
B. Take CPP at 65 and contribute for PRB.?
Note that I will only have 27 years of contribution to CPP at the age of 70.
Hi Alex – Th ebest way is to email me at [email protected] and pay me to do some calculations for you.