Canada Pension Boost: CPP, GIS, and OAS Increases Expected in August 2024

Canada Pension Boost: The Government of Canada offers several programs to address the main concerns of the elderly, such as health and pensions. Payments under Old Age Security (OAS) and the Canada Pension Plan (CPP) are adjusted annually to take into account inflation and cost-of-living increases.

Pensions go up 4.8% from January 2022 This change applies to all pensions in pay, survivor pensions and deferred pensioner of former/retired members. Statistics Canada reports the annual Consumer Price Index (CPI) each January, which measures cost of living increases and is used to determine pension amounts.

Canada Pension Boost

Pension Boost Canada makes sure that you pension does not lose its real value over time and inflation will never consume it. In this article, you will learn everything about the increase of CPP and OAS pension amounts that are going to be applied in 2021.

CPP Increase

There are some changes coming next year to the CPP pension and they affect both working Canadians, as well as current or future retirees. CPP benefits rise 4.4% from 2023 to 2024 It is one of the highest over this period due with a surge in inflation in the last 12 months.

In 2024, the maximum monthly CPP payment will be $1,364.60, up from $1,306.57 in 2023, reflecting a 4.4% increase in CPI rates. The average monthly CPP payment will be $758.32. Working Canadians will see the impact of an increase in the income limit from $66,000 to $68,500.

The federal government is also bringing in a second additional CPP contribution, or CPP2. This is over and above the maximum pensionable earnings limit. It means very little will work for retirees.

OAS Increase

OAS benefits have increased by 0.80% from January–end of July 2024. Unlike the CPP, OAS payments are adjusted on a quarterly basis in January, April, July and October to account for cost-of-living increases. The current 2024 OAS increase is based on CPI data from two three-month periods.

A 0.8% increase in the CPI would result in maximum monthly OAS payments of $713.34 (for those ages 65 to 74) and $784.67 (for those ages 75 and older) for January through July 2024. Benefits for seniors 75 years of age or older were automatically increased by 10% starting in July 2022. This increase will continue through 2024. Seniors over age 65 currently receive a maximum monthly OAS of $784.67, 9% more than the amount received by those ages 65 to 74, who receive $713.34.

OAS and CPP pensions are important parts of retirement income for Canadian seniors, providing financial support and ensuring fair distribution based on individual income levels and inflation adjustments.

Pension Boost Canada aims to reduce financial pressures, allowing seniors to maintain their lifestyles. It is advisable to plan before reaching retirement age, as cash retirement savings can only partially bridge the gap between pensions and expenses and they are also sensitive to inflation.

Thank you for reading about Pension Boost Canada. Stay connected with us for latest update on Pension scheme in Canada.

FAQs