When it comes to the philosophy that the more you put into something, the more you get out, this certainly holds true for Canada Pension Plan (CPP) contributions.
This article from RetireHappy.ca walks through what the maximum CPP benefits are and how to get the maximum ($1,092.50 per month as of 2016).
“When planning for retirement, the first piece of advice I give is not to plan on getting the maximum. When you look at the average payout of CPP, it’s just a little over $550 per month, which is a long way from the maximum. In other words, not everyone gets the maximum. At the most basic level, the amount you get from CPP depends on how much you put into CPP.” -RetireHappy
Not everyone will get the maximum benefits; in fact, the average payout is about $550 per month.
As the article states, planning your retirement includes understanding how CPP will factor in for you.
Questions? We’re happy to help. Get in touch with us.