Pension Boost Canada: Expected CPP and OAS Pension Increase in June 2024, Full News
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Pension Boost Canada
The majority of retirees’ two main concerns are health and pensions, which the Canadian government addresses with a variety of programs. Your Old Age Security (OAS) and Canada Pension Plan (CPP) benefits are adjusted yearly to reflect changes in the cost of living or inflation.
Beginning in January 2024, your pension will increase by 4.8%. The annual cost of living adjustment (COLA) affects all pensioners, survivor pensions, and the deferred pensions of former and divested members. Every year in January, Statistics Canada releases the Consumer Price Index, or CPI. The CPI is used to determine pensions and is a gauge of rising living expenses.
Pension Boost Canada protects your pension against inflation and ensures that it doesn’t lose value over time. In order to learn everything there is to know about the impending increases to CPP and OAS pension levels, we advise you to read this post.
Expected CPP and OAS Pension Increase in June 2024
CPP Pension Increase 2024
The CPP pension is undergoing significant changes that will impact both working and retired Canadians starting in the next year. Benefits under the CPP increased by 4.4% in 2023–2024. This increase is significantly greater than what we have seen in recent years because there has been a noticeable increase in inflation over the last 12 months.
The highest monthly CPP benefit in 2024 will be $1,364.60 instead of $1,306.57 as in 2023 because of the average 4.4% increase in CPI rates. The average monthly CPP benefit is projected to be $758.32 in 2024. The increase in the income cap from $66,000 to $68,500 will affect Canadians who are employed.
The government is also introducing CPP2, or a “second additional CPP contribution.” It is situated over the maximum amount that qualifies for pensions. The advantage would be minimal for retirees.
OAS Pension Increase 2024
For the quarter ending in January–June 2024, OAS benefits have increased by 0.80%. Unlike CPP, OAS benefits are adjusted quarterly for increases in the cost of living in January, April, July, and October. The two three-month periods of CPI data are used to calculate the current 2024 rise in OAS.
Seniors over 65 can now get a maximum monthly OAS payout of $784.67, which is 9% less than what seniors between 65 and 74 can receive ($713.34).(for individuals 65 to 74 years old) and $784.67 (for those 75 years and above), respectively, due to a 0.8% increase in the CPI. As of July 2022, benefits for seniors 75 years of age or older will automatically increase by 10%.
This will keep going up until 2024. The maximum monthly OAS payout for seniors over 65 is presently $784.67, which is 9% less than the amount earned by seniors between 65 and 74, who receive $713.34.
Concluding Words
The Older Canadian Social Security Pension (OWS) and the Canada Pension Plan (CPP) are significant sources of retirement income for older Canadians. Because it is flexible enough to adjust for inflation and sensitive to individual income levels, it guarantees an equitable distribution based on financial needs.
The funding provided by Pension Boost Canada aims to relieve seniors’ financial burdens and enable them to resume their regular lives. Planning ahead is usually a smart idea as cash retirement savings are prone to inflation and can only cover a portion of the difference between pension and costs once you reach retirement age.
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