If you want to learn more about Pension Boost Canada, you should read this short article: Full News: The CPP and OAS pensions are expected to go up in July 2024.
Pension Boost Canada
The Canadian government has many programs to help retirees with their health and income, which are the two main things they worry about. If the cost of living or inflation goes up, your Old Age Security (OAS) and Canada Pension Plan (CPP) income will also go up. This happens every year.
It’s going to get 4.8% better for you starting in January 2024. One cost of living adjustment (COLA) is made every year for all pensioners, survivor pensions, and delayed pensions of former and divested members. The Consumer Price Index (CPI) from Statistics Canada is released every January. It shows how much the cost of living has gone up and is used to figure out wages.
income Boost Canada protects your income from inflation and makes sure it doesn’t lose value over time. So, read this post to find out everything you need to know about the upcoming increases in the amounts of CPP and OAS pensions.
Expected CPP and OAS Pension Increase in July 2024
CPP Pension Increase 2024
Lots of changes are being made to the CPP income. These changes will happen next year and affect both working Canadians and retired Canadians. The CPP payments went up by 4.4% from 2023 to 2024. This increase is much bigger than what we’ve seen in past years because inflation has been going up a lot over the last year.
The highest monthly CPP payment will be $1,364.60 in 2024, up from $1,306.57 in 2023. This is because CPI rates will have gone up by an average of 4.4%. The average monthly CPP payment in 2024 will be $758.32. People in Canada who still have jobs will feel the effects of the income cap going up from $66,000 to $68,500.
The government is also putting in place a “second additional CPP contribution,” or CPP2. It is set above the highest income level that can qualify for a salary. For seniors, it wouldn’t be very helpful.
OAS Pension Increase 2024
Benefits from OAS have gone up by 0.80% for the quarter ending in July 2024. In January, April, July, and October, OAS payments are changed to reflect raises in the cost of living. This is not the case with CPP. The current increase in OAS for 2024 is found by adding up CPI statistics for two three-month periods.
According to the CPI, if it goes up by 0.8%, the highest monthly OAS earnings for people aged 65 to 74 will be $713.34 and for people aged 75 and up, they will be $784.67. People aged 75 and up will automatically get an extra 10% in benefits starting July 2022.
This rise will keep going until 2024. At the moment, seniors over 65 get a maximum of $784.67 a month from OAS. This is 9% less than the amount seniors between 65 and 74 get, which is $713.34 a month.
Concluding Words
Canada’s older people can get help with their money from the OAS and CPP pensions, which are big parts of their retirement income. It makes sure that everyone gets what they need by adapting to prices and taking into account each person’s income level.
The goal of Pension Boost Canada funding is to help seniors with their money problems so they can live their normal lives. Beginning to plan for retirement before you hit retirement age is usually a good idea, since cash savings can only partially cover the difference between your pension and costs, and they can also go down as prices rise.
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