2017 Financial Planning Guide: The numbers you need to know

A new year means new limits and data.  Here’s a list of new financial planning data for 2017 (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 2017 is 18% of the previous year’s earned income or $26,010 whichever is lower less the Pension Adjustment (PA).
  • The limit for Deferred Profit Sharing Plans is $13,115
  • The limit for Defined Contribution Pensions is $26,230

Remember that contributions made in January and February of 2017 can be used as a tax deduction for the 2016 tax year.

Tax YearIncome fromRRSP Maximum Limit
20172016$26,010
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 CalculationMore articles on RRSPs

TFSA limits

  • The TFSA limit for 2017 is $5,500.
  • The cumulative limit since 2009 is $52,000

TFSA Limits for past years

  • yearannual limitcumulative limit
    2017$5,500$52,000
    2016$5,500$46,500
    2015$10,000$41,000
    2014$5,500$31,000
    2013$5,500$25,500
    2012$5,000$20,000
    2011$5,000$15,000
    2010$5,000$10,000
    2009$5,000$5,000

More articles on the TFSA

Canada Pension Plan (CPP)

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

  • Yearly Maximum Pensionable Earning (YMPE) – $55,300
  • Maximum CPP Retirement Benefit – $1114.17 per month
  • Maximum CPP Disability benefit –  $1313.66 per month
  • Maximum CPP Survivors Benefit
    • Under age 65 – $604.32
    • Over age 65 – $668.50

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

CPP rates for past years:

  • YearMonthlyAnnual
    2017$1114.17$13,370.04
    2016$1092.50$13,110.00
    2015$1065.00$12,780.00
    2014$1038.33$12,459.96
    2013$1012.50$12,150.00
    2012$986.67$11,840.04
    2011$960.00$11,520.00
    2010$934.17$11,210.04
    2009$908.75$10,905.00

For more information on CPP

Old Age Security (OAS)

  • Maximum OAS – $578.53 per month
  • The OAS Clawback (recovery) starts at $73,756 of income.  At $119,615 of income OAS will be fully clawed back.

OAS rates for past years:

  • YearMaximum Monthly BenefitMaximum Annual Benefit
    2017$578.53$6,942.36
    2016$570.52$6,846.24
    2015$563.74$6,764.88
    2014$551.54$6,618.48
    2013$546.07$6,552.84
    2012$540.12$6,481.44
    2011$524.23$6,290.76

For more information on OAS Clawback:

New Federal Tax Brackets

For 2017, the tax rates have changed.

  • Lower Income limitUpper Income limitMarginal Rate Rate
    $0.00$11,635.000.00%
    $11,636.00$45,916.0015.00%
    $45,917.00$91,831.0020.50%
    $91,832.00$142,353.0026.00%
    $142,354.00$202,800.0029.00%
    $202,801.0033.00%

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.

7 Responses to 2017 Financial Planning Guide: The numbers you need to know

  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.

  2. Jim, this page is a wonderful idea! Having just completed a tax course, I noticed a small proofreading error for the Federal Tax Brackets – Lower Limit: $45,917.00, Upper Limit: $91,831.00 Marginal Tax Rate s/b 20.50%, not 10.50% as stated above.

  3. This page and website is a godsend as trying to find information on government page is hopeless. My common law partner will be 65 in November 2017 and we are trying to find out when he should apply for OAS to avoid clawback. Net income for 2015 was 91,609. Net income for 2016 will be approximately 74,260 after RRSP contributions. He is receiving CPP and it is my understanding that he can split this CPP pension with myself and that would reduce his net income to below clawback levels. As well, he is planning on maximizing RRSP’s for 2016 to lower the net income figure. Net income is line 236 on tax return – correct?? His income will be very low for 2017 as he will be having surgery with recovery time of about 6 months. My question is when should he apply for OAS to avoid clawback? Thank you and again this is the best source of information that I was able to find online. Our accountant from last year did not provide us with any information about this scenario – needless to say we will be searching for a different accountant for this tax season.

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