CPP Is Increasing In 2025, Here’s How Much You’ll Pay Into It

[@thewhitecarrot]

The best thing we could do for the next generation is to start and continue to teach them financial literacy in school. Not enough people are taught the basics which leads into a life of poor financial decisions. Saving money isn’t always easy but it’s not impossible.

[@ParallelWealth]

💯. My goal by the time I retire is to get basic financial education into the system. Knowledge is power and our school system is currently failing at this. It's getting in front of the right people to get it in there - easier said than done.

[@ParallelWealth]

@rob2039 not cut off, but will change

[@Goldman_Bernstein]

The CPP exemption has not increased since 1995 (30 years ago), yet inflation has significantly eroded this value!

[@heidilevens6284]

Thank you Adam, really well explained as always. Being in Quebec, I guess a similar principle applies. No one likes seeing paycheck deductions, but having a bit more in old age will be welcomed by most. It’s hard to see ahead when we are young and working, but health permitting, we will thank the system when the monthly checks come in old age. Thank you!

[@RajSingh-ns6bc]

Thank you, Adam. Enhanced CPP is a good thing. Let's get real most don't save and this will give them something when they will really need it.

[@ParallelWealth]

💯

[@harlyredhonda9938]

The real issue is the government is trying to manage money that we have put in for years my father, my grandfather, my mother, my grandmother most them never got to collect. Where is that money ? The government is actually lost money managing our retirement money. There should be billions and billions of dollars in there but there isn’t, that’s why we have to increase these percentages. When will it end? I feel sorry for the kids who have 30/40 years two put money into this the time they retire it’ll probably be 10% 15% 20% of their income. I believe we should be able to opt out of the system. The amount of money I’ve put in in 45 years I will never get out.

[@roberttaylor3594]

thanks for the non crazy assessment of CPP.

[@Coyotehello]

Happy new year Adam, thanks for an excellent video, again. They made it so complicated that I am not even trying to figure the amount I might receive anymore. Until about 15 years ago I was an employee, I then started being self employed and now just about ready to move to semi-retirement. LoL.

[@Azel247]

I'm paying into CPP, a defined benefit pension plan, and I have $1mil in investments at 38. I wish there's an option to stop those contributions because I think I've saved enough.

[@garth217]

Im glad I have a OMERS Defined Benefit Pension

[@ChristopherChaulk]

Excellent information. If you can would it be possible for you to make a video that shows a breakdown of estimated or proposed max CPP benefits if a person maximizes all contributions. Maybe starting potential retirement in 2035 and onward… ? This is one change I believe our government has gotten right. I hope our expected new government continues onward with these very beneficial changes for future retirees.

[@Larry_Kabberga]

I contributed to CPP for over 30 years and will get 16k a year. I wonder how much money I would have if invested that money myself in SP500…😢

[@seanfrank4158]

why didn't you contribute into the S&P 500 yourself?

[@Larry_Kabberga]

@ 😂

[@bradmercier8267]

I contributed 40 years as self employed I get about 15k. I was paying out 6500/year on retirement.

[@waffles1ca]

Difference being, CPP is indexed and guaranteed, S&P is neither, hindsight is a green vixen.

[@msmoniz]

Considering stagnant wages and the cost of housing, this is probably the best way to ensure future generations have some retirement savings because let’s face it, I t’s a struggle for them now to save for their own retirement with an RRSP. People gotta understand there’s no free lunch. This is short term pain that many will have to adjust to, but the long-term gain is there

[@vhateverlie]

It's a smart play because it ensures that the government will not have to pay out the CPP maximum to the current working generation.

[@Backtoreality1873]

Canada has been broken by the corrupt Liberals and NDP. The good guys that look after the CPP thankfully have our backs but aren’t miracle workers. YMPE is near 25% higher than the average wage in Canada. The middle class continue to get hosed.

[@Tadeusz-l8s]

It means that wages didn't go up enough

[@garth217]

​@@Tadeusz-l8s pouring coffee now pays $17 / hr. That's insane. People don't know how to budget. Young people want it all..now!! I just replaced my cellphone, because the old one was 7 years old.

[@katalystc1268]

​@@garth217 do you understand wages have gone up due to inflation? Yet wages have not kept up on pace with inflation. Yet housing is 1 million for a dingy single detach. Very shortsighted view you have, you're probally in your 60s. $17 in today's money is $11.25 years ago. Everything has gone up in costs food, gas, and ofc exubrant housing. Living on your own in the city on $17? Good luck.

[@CentauriCentauri]

CPP for 2025 increased to $1433.00 MAX

[@WarpDad]

What happens to people who haven't able to pay consistently into the CPP, what will THEY get out of it, and what else can they fall on to assist?

[@sheriewelsford]

For someone that is collecting a survivor's benefit, I learned there is a maximum amount that one is paid between the survivor's benefit and their own CPP when they retire, otherwise known as the combined benefit. Unfortunately, the combined benefit is not the sum of the deceased person's CPP and their own CPP, but is reduced to fall into that maximum CPP amount threshold. In 2025, the maximum CPP payment a person can get will be $1,433.00. The maximum combined CPP for 2025 is $1,449.53, which if you are earning $80,000/year, is not even 25% of their yearly income. And depending how much CPP the deceased person paid into it combined with the survivor's CPP, it just seems quite low, with a difference of only $16.53 for the year. So would these increases to CPP collected, eventually increase that combined payment as well?

[@garth217]

Why would you expect to collect more than an individuals maximum? You aren't 2 people.

[@davecarpenter4917]

@@garth217 Grocery bill would go down, but mortgage, utilities, car payment, property tax etc will stay the same. I think, in some cases, it could be hard on a survivor.

[@colinmagee5155]

​@garth217 Because both you and spouse paid into it. Would the surviving partner of a couple, both with a DB pension, be happy with no survivors benefit and DB plan keeping the money?

[@sheriewelsford]

@@davecarpenter4917exactly, I feel like I am somewhat at a disadvantage. My option is selling and downsizing but that should be by choice not necessity.

[@sheriewelsford]

@@colinmagee5155that is exactly what I was thinking.

[@LeandroSantos-bt1lg]

I plan to save more than a million dollars in my rsp account by the time I reach 65. At this rate I will probably wait until I’m 70 to apply for my cpp pension.

[@mikekovacs8981]

I could really do without 50% more CPP. My partner's business could do even more without it!

[@caperboy1169]

I max out every year and I’m already seeing a significant increase in my pension.

[@garth217]

My Defined Benefit Pension just went up $144/ month. CPP is play money.

[@caperboy1169]

@ I have one as well

[@wbr997]

Nice video, explains things well. However I don't think I would classify the Enhanced CPP as a "good" thing for everyone. Yes it's a good thing for people with poor savings habits. However, it's not a good thing for people with good savings habits. Specifically, if you are someone who would have saved extra money anyway, and you pass away relatively early then this extra money goes to others in the plan instead of your estate's beneficiaries.

[@stephenmorrissey1254]

My mother worked full time from 15 until she retired at 58. She passed away 5 months before her 60th birthday. Although she didn't receive a nickle from CPP and OAS I really doubt this was a priority for her when she was on her death bed.

[@Backtoreality1873]

It seems that is the preferred model for citizens to follow. Don’t be ambitious or work too hard. Ideally be dependent on the government for most things. Etc. etc.

[@borispetkau1246]

I'm 66 and still working 140k annual. My question: does it make sense for me to keep paying CPP?

[@davecarpenter4917]

You need to view your cpp statement of contributions. If you already have paid 39 "M" (maximum) years , then imho (Im not an expert) you might want to stop. In either case your cpp is growing via the delay , but it feels like you would be contributing to something with little to no return by continuing to paid into it. On the other hand, if you dont have 39 M years, then keep going. Each year would add 1/39th (2.6% on top of the 8.x% via delay).

[@garth217]

I retired at 54 with a similar income. Took CPP at 61

[@bradmercier8267]

No, stop at 65.

[@bradmercier8267]

If still working take the cpp at 65 and put it into rrsp for 5 years

[@ChristianDuval-h9r]

Last note.... I just invest in something I control and understand...........Business manufacturing and real estate Stock....BTC.....ect.......is not my stuff My manufacturing operation with robotics, automation, numerization and AI bring me 2022 a gross marging of 421%.......no match in the actual market

[@sandeeptanjore1253]

As usual good informative video Adam. Food for thought : if by deducting higher CPP we are going to get more in our retirement (at least this seems to be the promise that this government is making) then what is the need for a RRSP? I mean why do we need to invest in RRSP if government's retirement strategy is good enough.

[@ParallelWealth]

It's not good enough, it's better. Still need to save personally. The reality is that more people need forced savings, which this does

[@sandeeptanjore1253]

@@ParallelWealth First off I am not mad at you but I feel the country is so badly broken that everyone (government especially) wants to tax plus pluck our hard earned dollars under one pretext or the other. Secondly if forced savings does what the government claims then why save more besides if most of our pay is getting deducted at source (which is so evident in today's Canada) how will we keep saving outside of CPP or QPP. After all we cannot just live on "hope" and "fresh air". We too need to enjoy our life and with the cost of living soaring it's impossible to live in Canada and leave Canada peacefully. I hope you get the point. Lastly from what you mentioned it appears that every year the government will only keep increasing the CPP and QPP brackets so that they keep cutting. Back in 2018 I would be done with my QPP deductions by August 2nd pay. Starting in 2025 I see that it can only drag until November. Until and unless there is revolt against this and perhaps the future government nothing is likely to change. There is a limit to how much one can be taxed.

[@dogbone369]

There’s a contradiction in your explanation of why the CPP increase is a good thing. If someone is having trouble putting food on the table then they are not a higher income earner and are not anywhere near maxing out their contributions. So their benefit is minimal. Higher income earners absolutely do not need the government to look after their retirement savings.

[@ParallelWealth]

There are thousands, likely millions, that fall into CPP 2.0 and live paycheck to paycheck. I'm not talking lower income earners, I'm speaking to those that are still making over the threshold but still struggling to pay the bills

[@waffles1ca]

So live poor retire poor? CPP is indexed and guaranteed and your employer is forced to contribute to your retirement pension.

[@lmt200ish]

wonder if this would change cpp disability calculations.

[@ChristianDuval-h9r]

And why I have the same fiscal structure of Doctors, Lawyers and Farmer.... Simple...... if the government try to change the tax rate .....happen to Morneau few years .....the farmer kick is ass in the west....and have to pull back And right now with the capital gain at 66%.....the Doctors, Lawyer and farmers will kickass even more...this is why is still debating in senate.... On my side...just watch the action sitting with popcorn...and let the doctors do the dirty job

[@ParallelWealth]

The tax changes are hitting those professionals even harder and creating an uneven playing field.

[@ChristianDuval-h9r]

@@ParallelWealth Taxation and capial gain is a part of government negociation........ask yourself....why is difficult to find a family doctor in Canada.......

[@andreagraham296]

Thank you Adam , Happy New Year.

[@ParallelWealth]

Happy new year!

[@alainleblanc8007]

Who is steadyhand? What happened to Parralele Wealth?

[@ParallelWealth]

Nothing happened to us! We do retirement planning. Steadyhand is an investment firm some of our clients use. 2 separate companies.

[@sandeeptanjore1253]

Let the government take our whole salary with the promise that it will be paid back from 65th year. It's ridiculous the way it's just going up and up. Everything under the present liberal government has been negative. The fact that I live in La Belle Province (Quebec) makes it even more challenging as there are higher deductions. Ridiculous 😞

[@ChristianDuval-h9r]

Since 2013 i'm out of CPP........use the amount to MAX up TSFA.....my wife and will save more than $200 000 at the age of retirement....and will be a part of family transfert to a our kids

[@derekcox6531]

You haven’t worked since 2013? How do you “out” of Cpp? If you work,you have to pay it,if you’re self employed you have to double pay it. 🤔

[@Icecold0505]

@@derekcox6531He must be a business owner and has opted out of paying in.

[@timboutilier4769]

@@derekcox6531 if you're over 65 you don't have to pay into CPP unless you want . He may be working beyond 65 which seems the case here

[@rajatm9333]

What do you mean out of CPP. Can you please elaborate. For me as an employee I done have that choice and nor does a self employed person.

[@timboutilier4769]

@@rajatm9333 after 65 if you're still working you can choose not to pay CPP premiums if you take your CPP pension .After 70 the government no longer deducts CPP premiums from you

[@julianvanhoof2372]

Question Adam. Can you stop making CPP payments when you have Maximized the 35 year contribution? I've been higher income most of .y life and plan to work until 71 years old, Ill definitely be getting max CPP, so I approve of CPP2

[@davecarpenter4917]

If you're working, you have to pay into cpp/cpp2 until 65 , at which point you can opt out. If you have 39 M years at 65, then the bag is full. 35 M years is for starting cpp at 60.

[@LindaLinda-ld8lx]

If you pay max due to high income, do you get more when you retire?

[@vhateverlie]

Yeah, you get the CPP maximum unlike most people who will only get a portion of the maximum.

[@sociallyunaceptable981]

Oh? Will seniors get more???

[@ChristianDuval-h9r]

What I did in 2013...I call the CPP to send me by mail the amount I will collect now and what will be the amount at my retirement at 65..... The number I had was $750 per month (2013) and at 65 will be at $875 and continuing the pay the full amount ($7000) That mean....to receive $125 more in my pension I had to pay 17 years x $7000 (self employed) = $119 000 This is why I get out of CPP.....and put the same amount in TSFA instead......at 5%........no tax You will find out how the CPP is a gimmick......and when you died....they send you a cheque of $2500 taxable and no enough to cover the cremation cost

[@bradmercier8267]

Yup self employed should be able to opt out.

[@ParallelWealth]

These numbers seem very wrong.

[@ChristianDuval-h9r]

@@ParallelWealth That was the number in 2013.......still have the document in my hand........and the amount I use is $7000 average per year...compare to 2025....still under

[@tylerp7394]

CPP only has value if GIS is abolished. Since people who never pay into CPP will get it all for free via GIS. Those who work gets their money back. Those who game the system will be given free money at the expense of working people. Mind you I have paid and still paying into CPP... so I it is a bitter feeling. Also unlike RSP which you can still give to a family member...since it is your own money. CPP...even though you paid into it, you lose all or most if you die with no transfer rights.

[@Icecold0505]

CPP is for the low end of society who don’t save or prepare for retirement. I truly wish this money could be invested as we wish and we could opt out. But, it will be needed more than ever since this country has been run in to the ground and cost of living is so high.

[@vhateverlie]

Considering the current government is including the assets of CPP in their debt calculation it might just get raided like the Federal employees pension plan.

[@narvey1]

How does the CPP affect Retiring Canadian Forces members? If you retire with more than 35 years you get 70% of your best 5 years but I’m told you can’t get CPP even though you’ve paid into it for the entire time you were in the military.

[@jagjitparhar214]

So you’re saying those with 10-15 years left in retirement will get screwed hard by CPP 2.0?! Pay max into it and get less benefit at retirement age. Great.

[@RajSingh-ns6bc]

You'll get more later in your retirement.

[@heidilevens6284]

No it’s prorated. You’re going to receive incrementally more for the years that you paid extra, but unfortunately only the younger generation will eventually be able to realize the maximum payments as they would have paid in the higher contributions for longer. But still, a few years at a higher rate will still give a bit more to you when the time comes.

[@antonguri4923]

It’s only liar from government you can I get the same amount pay believe that

[@paulbulka7193]

CPP well managed? At this point I struggle with anything government run

[@kevintaylor8432]

It actually is well managed but not by the government. Unlike our government going into constant debt, the cpp has enough money for the next 75 years.

[@Backtoreality1873]

Thank god the Federal Liberal and NDP party’s that have destroyed everything they can in Canada have not stolen the CPP fund. Don’t give them ideas guys.

[@jonz1817]

There is an excellent podcast from Rational Reminder Episode 318 on CPP sustainability that walks through this in great detail.

[@kevintaylor8432]

@ thanks for this information. It confirms my earlier comment about a 75 year sustainable cpp.

[@trashdadgamin2662]

Sure, hope alberta leaves the cpp

[@psychette8846]

So now someone on GIS & OAS is close to CPP & OAS. Do you think with the enhansed CPP, the government will also bump GIS to keep it close to the new CPP?

[@ElenaLara-934Gs]

I think this increase in CPP contributions is done to reduce GIS payments in the future.

[@psychette8846]

@@ElenaLara-934Gs Maybe to reduce OAS, but not GIS which is the senior welfare program.

[@ElenaLara-934Gs]

@@psychette8846 With this enhanced CPP, the government is actually looking to save money by paying less in GIS. OAS will not be reduced. GIS on the other hand is reduced by $1 for every $2 of income. CPP is considered income, so the higher CPP amount, the lower GIS amount.

[@TonyMalerba-y3n]

Cpp and oas are pathetic.