Another CPP Increase is Expected in January 2024: Fact Check, Is This Real?

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Another CPP Increase is Expected in January 2024

People who make valid contributions to the CPP and are over 60 years old are eligible to get the CPP retirement pension. The pension is paid as monthly payments and people have to report this income on their tax return.

The CPP is set to increase by 4.4% starting January 2024. Aside from the set percentage, there won’t be any further increases in the CPP pension.

Important Links

  1. Canada Payment Dates
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  3. Canada Child benefit
  4. Canada Workers Benefit
  5. Climate Action Incentive

Fact Check, Is This Real?

Each year, the CPP Retirement Pension is increased and adjusted according to the changes in the Consumer Price Index. CPI is considered the indicator of the prices of services and goods in Canada. Therefore, changes in inflation can change the CPI, affecting the CPP payments.

Another CPP Increase is Expected in January 2024CPI is published by Statistics Canada by comparing the cost of a fixed basket of goods purchased by Canadian consumers over time. The basket includes food, transportation, healthcare, clothing, shelter, and household expenditures (average).

According to Service Canada, the CPP amounts are adjusted every January. The authorities use a pre-set formula and CPI figures of the current and past benefit years to determine the change in the CPP for the upcoming year.

The changes are made so that the pensioners won’t have any difficulties in adjusting to the changes in the cost of living. The pensioners, especially those who don’t have any other resources for income, can face hardships if the CPP payments are not adjusted.

Although the government changes the CPP according to the CPI changes, it doesn’t mean that they can implement substantial changes at once. They can only increase by a calculated percentage, not more or less than that.

However, if we look at the past changes in the CPP, they haven’t decreased when the cost of living increases. This is due to the implementation of the Canada Pension Plan Act, which doesn’t allow the pension amounts to decrease even if the cost of living decreases.

Unless the cost of living increases, the pension amounts don’t increase, i.e., they stay the same. Therefore, the expected 4.4% increase in January means that the benefits of the CPP that were paid in 2023 will be increased by 4.4% for the 2024 benefit period.

Starting in January, the CPP will further increase due to the additional component. This component will be implemented as a part of the enhancement of the CPP. The workers will also be able to make contributions to the additional component, which will further increase their payments.

The increase in the CPP is likely to be implemented in January 2024. People who are already receiving the CPP, as well as the new applicants, will see increased benefits.

All the changes in the Canada Pension Plan are informed by the Government of Canada on its authorized website. CPP is one of the major retirement income sources in Canada on which thousands of seniors rely upon.

Not only the monthly payments are changed, but the maximum allowable contributions limits, exemption amounts, and contribution rates are also adjusted each year.

This means that the employees who are working currently can make more contributions each year, which significantly increases their monthly retirement pension when they start their CPP pension.

How to Calculate CPP Payments?

Moreover, people can also use the Canadian Retirement Income Calculator to find out more about their monthly payments and plan their spending accordingly.

People need the following information to calculate their CPP payments –

  • Statement of CPP contributions,
  • RRSP statements (if applicable),
  • employer pension information (if applicable),
  • statements of annuities, foreign pensions, etc., (whichever are applicable).

This calculator can not only provide the information on CPP payments, but can also provide the information on the OAS payments.

CPP Payment Dates 2024

The payment dates for the CPP Pension in 2024 have been revealed by the Canadian Government. People can check the “Benefits payment dates” section of the Canadian Government’s authorized website to learn about the CPP payment dates in 2024.

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The first CPP payment can be expected to be issued on January 29, 2024, in which people will be able to see an increase. The last payment of the CPP is scheduled to be issued on December 20, 2024.

As we know, the pension can take a couple of additional days to be issued in some cases. If payments are sent by cheques, the payments can take further time to be issued.

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