Canada Pension Plan offers income to the retired people of Canada. There is specific eligibility criteria for getting maximum payment of Canada Pension Plan. Here the eligibility criteria are discussed:
Eligibility for Maximum CPP
One of the requirements for receiving maximum payment, maximum amount of candidate’s income must be contributed to CPP during the time period of age 18 to 65 for minimum 39 years.
Maximum CPP Payments
If candidates start receiving pension at the age 65, the maximum amount of pension for year 2024 is $1,364.60. This amount will increase with the increase in income in the year 2025.
CPP Enhancement
Candidates who have contributed at the enhanced levels for 40 years, the CPP enhancement raises the retirement benefit to up to 33.33% of pre-retirement income. Higher earners will also be able to contribute more and gain more from 2025.
Who May Not Qualify for the Maximum?
Employment gaps, lower annual income, amount of contribution less than YMPE affect pension amount. If you start receiving CPP before age 65, the amount of pension will be reduced by 0.6% each month till you reach age 65. Otherwise, if you delay CPP after age 65, your pension will increase by 0.7% each month up to age 70.
Ways to Maximize Your CPP Benefits
Candidates can follow these guidelines to maximize their pension benefits. Number one is the maximum contributions to CPP during working years. Second comes delaying CPP benefits up to age 70 can significantly maximize your pension. Lastly, working after retirement and still contributing to CPP can also increase your pension.
Additional Benefits and Programs
Other Benefits from the Government of Canada are Old Age Security and TFSA and RRSP Savings. Candidates qualifying for OAS can get additional benefits along with CPP to manage their budget. Moreover, candidates are encouraged to invest in TFSA and RRSP Savings to get further financial benefits.