Your financial planning depends critically on your knowledge of the Canada Pension Plan payment schedule. As in prior years, you should anticipate receiving monthly CPP payments in 2024.
Receiving your payments conveniently is made possible by setting up direct deposit, which guarantees that the money lands in your bank account on schedule.
Usually, CPP pension payments are deposited on the third business day of the month.
Whatever your benefit—survivor, disability, or CPP retirement—knowing the precise dates, amounts, and tax ramifications is essential to your financial planning.
CPP Payment Dates for 2024
- January 29, 2024
- February 27, 2024
- March 26, 2024
- April 26, 2024
- May 29, 2024
- June 26, 2024
- July 29, 2024
- August 28, 2024
- September 26, 2024
- October 29, 2024
- November 27, 2024
- December 20, 2024
Your CPP payments will be issued through direct deposit on these dates. If you receive payments by cheque, delays may occur due to postal service timing.
Understanding CPP Payment Amounts
The highest CPP payment at 65 years old is predicted to be $1,364.60 in 2024. Your maximum pensionable earnings and contribution history, however, determine your actual payment amount.
Accessing a comprehensive CPP statement of contributions through Service Canada will let you see your own contribution rates and project your payment amount.
Qualifying For CPP
You have to have contributed to the plan legally at least once to be eligible for the CPP. Your pensionable earnings up to a certain level, called the Year’s certain Pensionable Earnings (YMPE), determine your contributions.
Though you can start collecting benefits as early as 60 with a reduction in payments or as late as 70 with an increase in payments, 65 is the usual retirement age.
Enrollment Process
It is not automatic to enroll for CPP benefits. Service Canada is where you should apply for CPP as you are close to retirement age.
As early as six months before you wish to begin benefiting, you can submit your application. Applying online using your My Service Canada account or in person at a Service Canada location are the two ways to enroll.
Starting Benefits
Making the financial decision of when to begin your CPP payments is crucial. Starting them at age 65 will guarantee you the entire pension amount determined by your average earnings and contributions.
Should you decide to begin taking benefits before turning 65, each month that passes before the standard retirement age will result in a 0.6% reduction in your pension.
Conversely, deferring CPP payments beyond 65 will boost your monthly income by 0.7% for each month that it is delayed.
Tax Effects and Refunds
Taxable income includes CPP benefits.
To save a big tax payment at year-end, you can ask the Canada Revenue Agency to withhold federal taxes on a monthly basis.