The Canada Revenue Agency (CRA) will issue the next Canada Pension Plan (CPP) payment on November 27, 2024. The CPP is a crucial program providing financial support to retirees, survivors, and individuals with disabilities across Canada, including international citizens and immigrants working in the country.
CPP and International Citizens
International citizens who work in Canada contribute to the CPP through payroll deductions, regardless of their origin. These contributions ensure eligibility for benefits such as:
- Retirement income
- Disability benefits
- Survivor benefits
If you have contributed to the CPP while living and working in Canada, you are eligible for benefits once you reach the qualifying age.
CPP Payment Amounts
CPP monthly payments are determined by your contribution history and the age at which you begin receiving benefits:
- Maximum Benefit in 2024: $1,364.60/month (for those with the highest contributions).
- Average Benefit: $816.52/month.
How CPP Payment Amounts Are Calculated
The CPP benefits are influenced by two key factors:
- Contribution History: The amount contributed during your working years.
- Age When You Begin Receiving Benefits:
- Starting at 60: Monthly payments are reduced by 0.6% per month (7.2% annually) before age 65. For example:
- A $1,000 benefit at age 65 becomes $940 if taken at 60 (a 6% reduction per year).
- Starting at 70: Monthly payments increase by 0.7% per month (8.4% annually) after age 65. For example:
- A $1,000 benefit at age 65 grows to $1,420 by waiting until age 70 (a 42% increase).
- Starting at 60: Monthly payments are reduced by 0.6% per month (7.2% annually) before age 65. For example:
Starting benefits earlier results in lower payments, while waiting longer maximizes the monthly benefit.
Eligibility for International Citizens
- As long as you have worked and contributed to CPP in Canada, you are eligible to receive benefits starting at age 60.
- Contributions made while living in Canada ensure eligibility, even if you move abroad later. The amount received will depend on your contribution history.
Applying for CPP
To apply for CPP benefits:
- Use your My Service Canada Account.
- Submit a paper application, if preferred.
Important Note: Apply at least 120 days in advance of when you wish to begin receiving benefits to account for processing times.
Upcoming CPP Payment Dates
- November 27, 2024
- December 20, 2024
Being aware of payment dates helps international citizens and immigrants manage their financial planning effectively.
For more information or to apply, visit the official Government of Canada website or log into your My Service Canada Account.
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