Financial Planning

2024 Financial planning guide for Canadians

2024 Financial planning guide for Canadians

A new year means new limits and data. Here’s a list of new financial planning data for 2021 (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 2024 is 18% of the previous year’s earned income or $31,560 whichever is lower less the Pension Adjustment (PA).
  • The limit for Deferred Profit Sharing Plans is $16,245
  • The limit for Defined Contribution Pensions is $32,490

Remember that contributions made in January and February of 2023 can be used as a tax deduction for the 2023 tax year.

Tax YearIncome fromRRSP Maximum Limit

More articles on RRSPs

TFSA limits

  • The annual TFSA limit for 2024 has increased to $7,000.
  • The cumulative limit since 2009 is $95,000 (assuming you were over the age of 18 in 2009)

TFSA Limits for past years

YearAnnual LimitCumulative Limit

More articles on the TFSA

Canada Pension Plan (CPP)

Here’s some of the key planning data around CPP.

  • Contribution amounts for 2024
    • Employee contribution = 5.95% (up to YMPE)
    • Employer contribution = 5.95% (up to YMPE)
    • Self employment = 11.9% (up to YMPE)
    • The maximum employer and employee contribution to the plan for 2024 will be $3,867.50 each and the maximum self-employed contribution will be $7735.
  • New in 2024 is the second additional CPP contributions (CPP2)
    • For income over the YMPE of $68,500 but under Additional YMPE ($73,200)
      • Employee contribution = 4.0%
      • Employer contribution = 4.0%
      • Self employment = 8.0% (up to YMPE)
      • The maximum additional employer and employee contribution to the plan for 2024 will be $188 each and the maximum self-employed contribution will be $376.
  • CPP Benefits
    • Yearly Maximum Pensionable Earning (YMPE) – $68,500
    • Additional Maximum YMPE = $73,200
    • Maximum CPP Retirement Benefit – $1364.60 per month
    • Maximum CPP Disability benefit – $1606.78 per month
    • Maximum CPP Survivors Benefit
      • Under age 65 – $739.31
      • Over age 65 – $818.76

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:


For more information on CPP

Old Age Security (OAS)

  • Maximum OAS (Age 65 to 74) – $713.34 per month
  • Maximum OAS (Age 75 +) – $784.67 per month
  • The OAS Clawback (recovery) starts at $90,997 of income. At $148,179 of income OAS will be fully clawed back.

OAS rates for past years:

YearMaximum Monthly Benefit (Age 65 to 74)Maximum Annual Benefit (age 65 to 74)Maximum Monthly Benefit (Age 75 or older)Maximum Annual Benefit (age 75 or older)

For more information on OAS Clawback:

RDSP contribution limits

While there is no annual contribution limit for Registered Disability Savings Plans (RDSP), there is a lifetime limit. For 2023, that amount is $200,000 per beneficiary. 

Contributions made in previous years will reduce the lifetime limit. You can make contributions to an RDSP plan until the end of the year which the beneficiary turns 59. 

For more information on how to qualify for the Disability Tax Credit and an RDSP, check out this interview with Alan Whitton, on The MapleMoney Show podcast. 

New federal tax brackets

For 2024, the tax rates have changed due to inflation adjustment.

Lower Income limitUpper Income limitMarginal Rate Rate

Remember these rates do not include provincial tax. For new provincial rates, visit the CRA site.

For more information on tax rates


  1. Geoff Vincent

    Great resource. Thank you for compiling this.

  2. Marilyn Demetroff

    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 2018 and we are trying to find out when he should apply for OAS to avoid clawback. Net income for 2016 was 91,609. Net income for 2017 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 2017 to lower the net income figure. Net income is line 236 on tax return – correct?? His income will be very low for 2018 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.

    • Doug Runchey

      Hi Marilyn – This article should answer your questions about the OAS clawback:

      As far as “splitting his CPP”, that can’t be done just on his tax form. Assuming that you have ever contributed to CPP, it has to be a two-way sharing of CPP, so it can only be done once you are also receiving your CPP.

      • Dave

        …and CPP sharing is not a simple 50/50 split. It depends on how long you have been together. Another CPP formula! We have been married 43 years and it was not a 50/50 split. We had to provide proof of how long we have been married. In a common-law relationship I suspect it will be determined by how many years you have reported on your income tax being in a common-law relationship with your partner.

        Maybe Doug can elaborate?

        • Doug Runchey

          Hi Dave – For CPP sharing, the percentage that is shared is based on your many years you lived together compared to your “joint contributory period”. For common-law, it would depend on what years they claimed to be living together as common-law for CPP purposes, on a statutory declaration.

  3. Fern

    Thanks so much for creating this document with all the numbers in 1 place.

  4. Jack O

    Wow, this is excellent. I’m adding this page to ‘My favourites’. Thanks for putting this together!

  5. Lobna

    I came to Canada as an immigrant in 2004 at the age of 42. Today 55 years and since I’m a single Mom of four, with low income. My question, how much CPP & OAS will I get when I reach 70 years. I’m planning to continue working up the then. It’s important for me to know because unfortunately, I do not have any contribution in RRSP nor in TFSA due to my heavy responsibility towards my four kids. Like I said as long as my health will allow I will be working until the age of 70. Thank you for your time and effort. I started last year to educate myself in retirement and all this and your website helped me understand lots of things. All the best!

    • Doug Runchey

      Hi Lobna – At age 70, your OAS would be approx. $458 per month (in 2018 dollars). It’s impossible to determine your CPP accurately without know your average salary (in terms of % YMPE) for the entire period from age 42 to age 70. For example, if you averaged $20,000 annually (in 2018 dollars), your CPP at age 70 would be approx. $420 per month. If those were your only two sources of income, you would also be eligible for GIS of approx. $850 per month, for a combined total of $1,720 per month.

      • LOBNA

        Thank you so much, Doug, for your prompt reply, I truly appreciated. My annual net income never reached $15,000.
        I’m glad I qualified for GIS as well. Thank you for letting me know. Cheers.

  6. Celia

    Thank you so much. I always find your article very informative and truthful.

  7. Paul Miller

    Thank you for putting this together Mr Yih – very useful, very user-friendly!

  8. Anil

    Thank you for this very informative article. I particularly liked the information on early withdrawal of CPP benefits. The scenario you had illustrated was very simple and easy to understand.

    Keep up the good work and continue posting your inspirational articles.

  9. Emma

    Mr. Yih – thank you for your all-in-one post…always such great service to Canadians who follow you. Just a question re CPP – is there any clawback of CPP benefit if you begin drawing it at age 65? [I understand the 0.6%/yr – 5 yrs to age 65 reduction], but not sure if there is a factored deduction at 65 yrs.] I will be on a CPP disability pension to age 65. Best wishes for 2018 to you!

    • Doug Runchey

      Hi Emma – Your CPP disability pension will convert to an “unreduced” retirement pension at age 65, but the amount will definitely be less than your current disability amount. An easy way to estimate your CPP retirement pension is to subtract the flat-rate portion of the disability ($485.20 for 2018) and divide the remainder by 75%. For example, if your 2018 CPP disability pension is $1,000, your retirement pension at age 65 will be approx. $686.40 ($1,000 – $485.20 = $514.80 / 75% = $686.40).

  10. Martin

    Thank you for supplying all this updated information. It’s paramount in pre-retirement planning as well as if your presently in the moment of retirement and living the dream.. Great work and Thank you again.

  11. Heather

    Thank you for compiling all the numbers I need in one spot!

  12. Shirley

    I started my Cpp at age 61 in 2017 my benefit amount was 595.79. My now deceased common law spouse (Sept 2017) was receiving 1092.52 Cpp. When I got the widows allowance which is 37.5% of his and some of the 185.87 which is part of determining the benefit due to being under age 65. Was wondering why I didn’t get the maximum 614.62? Should I request a recalculation or is it better to leave
    “Sleeping dog lie”

  13. Ken Warren

    “Remember that contributions made in January and February of 2018 can be used as a tax deduction for the 2017 tax year.”

    Under the current rules, these contributions “must be used for 2017”. There is no option anymore. The only contributions that can be used to reduce 2018 income are those made between March 1st, 2018 and February 28th 2019.

    • Gail Genest

      When did this change – I don’t think this is right, my understanding is you still have the option to use for the previous year or the year your are contributing in. You must show it on your return as a contribution – but you don’t necessarily have to use it? Is that correct?

  14. Gail Genest

    Doug – is the DPSP amount that an employee/employer contributes and an individual’s RRSP limit – separated or is the DPSP part of your RRSP contribution limit room?

    ex DPSP $13,250 + RRSP $26,300 total contributions = $39,550?


    • Doug Runchey

      Hi Gail – Sorry, but this is not my area of expertise. Hopefully someone who knows the answer will respond.

      • RICK


  15. Doreen

    Thank you …Well put together….very informative.

  16. Heather

    @Doug Runchey, thank you so much for the contribution you provide to Retire Happy. I have learned so much from you. The world of CPP is so convoluted, but your expert knowledge has helped to provide some clarity.

    • Doug Runchey

      Hi Heather – Thanks for the kind words!

  17. Dale

    Thanks for always having relevant information on your site. Well done!

  18. Fern

    I have a question regarding the best month to take early CPP. I fully retired last year on June 1 as a 60th birthday present to myself and have not taken my CPP yet. I want to wait until I am at least 61 so that there is at most a 30% reduction and possibly not until I’m 62. Other than having a geriatric cat who is needing some larger than anticipated vet bills, I’m quite comfortable financially with my work place pension. Since I’m single, I made a withdrawal from my RRSP ($10000) in January to top up my TFSA ($8000) and plan to do the same next year. These withdrawals already push me into the 3rd tax bracket so CPP wouldn’t be an impact. I realize that each month that I wait to take my CPP improves the size of “my piece of the pie” but am not certain if it is better to take CPP in December or January. I may be confused because of an earlier artical.


    • Doug Runchey

      Hi Fern – There have been some years when there was a significant difference between whether you started your CPP in December or waited until January, but that is unusual. I can’t see that there would be any special month in your situation.

  19. Bob

    Really enjoy the articles, very informative and practical. Thanks…Sincerely Bob

  20. Deb

    I read with interest your reply to Lobna that since she qualifies for GIS because she only has minimal CPP & OAS, that she would also receive approx. $850 per month GIS, for a combined total of $1,720 per month.

    My common law partner and I have both worked 40 years, been in Canada our whole lives, receive $650 CPP each now and will receive $586 approximately at 65 for a total of under $2472.00 per month, under $30,000 per year for 2 people. So if government believes a single person such as Lobna will need and therefore receive $1720.00 per month for one person thereby qualifying for GIS, it would stand to reason that 2 people would/need approx $3400 per month. Would we, as a couple, or individually qualify for the GIS you are talking about since we would be making under $30,000.00 as a couple?

    • Doug Runchey

      Hi Deb – If CPP and OAS are your only incomes, you would each qualify for GIS of approx. $164 monthly.

  21. Steve

    Hi Doug. A question re: TFSA’s. I understand the max for the year is $5500. My question is with the Cumulative contributions. If I have never put anything in a TFSA, does this mean I can contribute $57,000 in 2018 or am I still only allowed the $5500?
    Thanks. Love this website.

    • Doug Runchey

      Hi Steve – This is not my area of expertise, but I happen to know that the answer is “Yes” if you have never contributed to a TFSA and you were eligible to contribute each year since 2009, you could contribute up to $57,500 in 2018.

  22. Robert Fortier

    The CPP rates listed above for 2018 are $ 1134.17 per month. Does anyone actually gets this amount on a monthly basis? I get 1/2 of the amount. So who does? Great website by the way. Thanks.

    • Doug Runchey

      Hi Robert – Yes, some people receive that maximum amount, but in order to do so you would normally need to have maximum earnings/contributions to CPP for at least 39 years between age 18 and 65.

  23. Robert

    A couple over the age of 65 can elect “Joint Election to Split Pension Income” on their Income Tax return – Form T1032. The same couple can also make use of “CPP Pension Sharing” between their two CPP pensions. Is their any value to “Pension Sharing” since Joint Election to Split Income” is basically doing the same thing?

    • Doug Runchey

      Hi Robert – The Joint Election Form T1032 does NOT include pension income from CPP, so the short answer is that they are both useful for sharing pension income from different sources.

      • Robert

        OK. Thanks.

  24. Ron Sutherland

    Great information and excellent responses from Doug.

    I retired at 61 and plan to delay receipt of CPP retirement benefits to age 65. I have confirmed that such a delay will not affect the amount of my pension as a result of adding those four years of non-insurable earnings. Is there any such risk if I were to delay receipt to some date after age 65?

    • Doug Runchey

      Hi Ron – Delaying past age 65 will never decrease your “calculated CPP” because there is a specific over-age-65 dropout. Your CPP will therefore increase the full 0.7% per month (8.4% per year) if you delay after age 65.

  25. Deesha Chandan

    Wonderfully put together. Thank you for this crucial information presented in a simple language. Appreciate your writing 🙂

  26. Fern

    I was wondering if it would make sense to withdraw money from my TFSA to make my last RRSP contribution (approximately $1000)? I retired early at 60 in 2017 and have not yet taken my CPP, I may do so this year. Last year (2018) I did not maximize my RRSP contribution so I have some contribution room left.



    • Ryan

      Hello Fern,

      If you cannot come up with the $1000 in new funds and if your income last year exceeds what your income will be in future years when you access that RRSP contribution via wothdrawl or RRIF, it can make sense to do what you propose.

      Your TFSA withdraw will not affect your income this year and you will be able to replenish the withdrawn amount in subsequent years.

      If however you will be earning greater income once you begin to take your CCP, it may end up costing you more as the withdrawl at that time would increase your then income and possibly your taxes with against what you would be saving in taxes on your previous earnings.

      Hope this helps 🙂

  27. Al-Noor

    Thanks Jim for this comprehensive guide to the numbers we need!
    What a handy list.

  28. Jean Pierre Laporte

    Super useful article.

    If you need any materials on Personal Pension Plans that you’d like added please let me know.

    PPPs have the highest tax deductions in Canada and exceed TFSA, RRSP and even IPP limits over time. Great for your readership that is in business for themselves like incorporated professionals or business owners.

    • Cheryl

      I would like to know more about the Personal Pension Plans

  29. Ryan

    Great resource as always!!

    Question for those that know…

    This year will be the first year to have an employer match contribution.

    I will be contributing 3% of my income into a group plan RRSP and the employer will match the same 3%.

    I cannot access the employer contributions for 2 years.

    How do these match contributions affect my total RRSP contributions allowable for 2019?

    Are they deducted from the 18% (leaving me 15%)… even though they aren’t yet mine to access?

    I appreciate any clarification on this.


    • Kevin

      No expert, but Yes, I believe so.

  30. Curtis Enns

    Thank you for compiling this easy to use reference list!

  31. Mario

    Question about contributing to a RRSP?

    First of all, is an OMERS pensión considered an Earned Income?

    If you are receiving an OMERS pension, only source of income, and there still room for RRSP contributions as per the Notice of Assessment, can you still contribute to a RRSP?

    Thank you very much for taking the time to answering my questions.


    • Lee

      Your federal tax rates has an error. You should have 48535 to 97069 instead of 47535 . A little confusing as previous line above is 47535.

    • Diane

      I am fairly certain you can continue to contribute to your RRSP after retirement only if you have contribution room remaining, or you’re earning employment income. Pension income is not considered ‘earned’ income. But do check government website in case there has been changes since 2017.

  32. Donna

    I think the maximum OAS amount is still showing the 2018 amount. 2019 should be 601.45

  33. Sarah

    Perfect. This is exactly what I needed – thank you so much Jim! Appreciate you putting this together.

  34. Dennis Fielding

    Thanks, this is very useful. One thing that I am still confused by is figuring out the benefit of continuing to contribute to CPP for the post-retirement benefit if you are drawing a CPP benefit but continue working past 65. It seems to me that you make a significant contribution for a small benefit and it seems the break even point is many years down the road. Any clarity would be most appreciated,

  35. John Johnston

    My replies are usually not published. Perhaps I am always wrong, but I think you have a typo for Federal brackets. You wrote “For 2019, the tax rates have changed”. I think you mean “2020”. Do you have someone proof reading before publishing? Several people are bookmarking, copy/pasting, and relying on this very important information and may not see corrections.

  36. Christopher Dunlap

    Love your posts Jim. I’ve been reading them for years. Happy New Year.

  37. Margaret Robb

    What can a non-resident Canadian citizen do to invest in retirement planning?

  38. Laine

    Can you find out how the GIS dovetails into the OAP and how the 50% clawback for each $1.00 of income is calculated and what the threshold is for clawback – is the clawback the same as for the OAP once the threshold is reached, ie. is the clawback only on the amount over the GIS threshold or is the clawback 50% of the GIS even if the threshold is exceeded by pennies?

  39. Sam Wong

    When the table says income, is that total income on inside page one, the net income or the taxable income on inside page 2?

  40. Julie Westall

    The self-employed CPP rate should be 10.5 (not 10.1) as shown.

    • Doug Runchey

      Hi Julie – Yes, you are correct.

  41. Tom

    Has the oas increased for 2020 and when does the personal tax allowance increase to $15,000.Also has the middle class tax cut been initiated.Thanks.Chilliwack senior.Tom.

  42. Adrian

    A small typo in the CPP rates section:
    instead of Self employment = 10.1%
    it should be Self employment = 10.5%
    as the number reflects employee + employer contributions, each now at 5.25%.

  43. Wade

    This is an excellent website and this chat space is also very helpful. I am over 60, but am delaying taking CPP and still working as I worry that the whole benefit will get eaten in extra income taxes. Is there a calculator for the tax implications of early CPP withdrawal while still working?

  44. Alice

    Is self employed and employed will get the same amount since they are difference contribution.

  45. Alan h.

    I have been trying for a while to find a answer to this question. It has to do with gis and how much is exempt and what qualifies as being exemp. I understand that the first 5000 dollars of income is exemp before the clawback starts but my question is cpp income different than working part time. my understanding is that if I have 5000 dollars in cpp yearly but no other working income such as a pt job than I will still be clawed back 1 dollars for 2 dollars earned however if I have no cpp and work apt job of 5000 dollars a year than that would be totaly exempt and no clawback. If this is true than if i have 5000 cpp and 5000 pt job than i would only be clawed back on the cpp portion.

    • Doug Runchey

      Hi Alan – The only exempt income is from employment or self-employment. The first $5,000 of such income is wholly exempt and the next $10,000 of such income is 50% exempt. You are correct in your example if you had $5,000 income from work and $5,000 from CPP.

  46. Larry

    CPP payout inflation increase only 4.2%?

    1306.57/$1253.59?? Canadian consumer prices climbed 0.1% in November, trimming the annual rate to 6.8%

    • Bob

      Yes, why is the CPP increase of 4%, to 1306 for 2023, so much lower then the CPI of 6.3%

      • Doug Runchey

        Hi Bob – The maximums are based on the 5-year-average YMPE ending with the year that the benefits starts, so that any increase in the maximum benefits from one year to the next reflect increases in wages as measured by the YMPE increase. It’s only after a benefit is in pay that it will be adjusted by price increases as measured by the CPI. Yes, this means that someone who received a maximum CPP benefit in 2022 will be receiving more in 2023 than someone who starts receiving a maximum CPP benefit in 2023.

  47. Fred

    Thanks for the info..very useful. I didn’t see anywhere where it mentioned that OAS Max for ages 75 and up is $756.32….a higher amount than for ages 65-74.($687.56).

    • TR

      I think Bob was referring to the inflation adjusted amount.

  48. Wes Leier

    Great reference article !! I was just wondering, is it advisable to do a Systematic Withdrawal from my RRSP in order to maximize my TFSA ? I always plan for tax purposes to remain below the OAS recovery claw back limit.

  49. Garth

    The maximum CPP benefits you list above do not match those on Doug Runchey’s website.

    • Doug Runchey

      Hi Garth – I believe that Jim is quoting the Service Canada website, which you might think should be correct. What Service Canada doesn’t well communicate is that their maximum numbers apply only to a CPP benefit starting in January 2023, and there is a higher maximum amount for each month in the year (and for each of the next 40 years). My maximums are for a CPP benefit starting in December 2023, thus my numbers are the maximum maximums for 2023 and Service Canada’s numbers are the minimum maximums for 2023.

  50. Edward W.

    I truly enjoy the information on the website and in the blogs, but have one comment to make. The bias behind the presentation of some of the information is that all viewers are middle-class or upper-middle-class. I always need to read in context and think what information does my family need as we are in the lower income brackets.

    Case in point… On this web page the monthly CPP benefits are listed as if that is the actual amount to be received. They are the amounts you receive IF YOU WERE AT MAXIMUM CONTRIBUTION LEVELS. If your income was less, your CPP would be less as well. Therefore the heading for on the CPP RATES table should read MAXIMUM Monthly.

    Conversely the OAS rates correctly state that they are the MAXIMUM monthly rate one can receive. The OAS rate drops if your income is OVER a given amount and a clawback takes place. Therefore the bias of the information continues to be for middle-class/upper-middle-class individuals.

    Why not simply state that the CPP monthly benefit is the MAXIMUM monthly amount?

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