How to get the Maximum from the Canada Pension Plan (CPP)

All our CPP ideas & resources: https://finepointsolutions.ca/ideas-r...

This animated video shows how to get the maximum Canada Pension Plan retirement pension - without the complex math!

Video features:
Jug of water & ice cube tray analogy to visualize Canada Pension Plan rules and calculations.

Our simple analogy shows how your CPP contributions turn into your retirement pension when you ultimately start CPP.

Visual description of key Canada Pension Plan dollar amount thresholds, such as the Year's Basic Exemption (YBE), and the Year's Maximum Pensionable Earnings (YMPE).

How the dropout provisions work to potentially get the maximum retirement pension, even if an individual hasn't contributed the maximum into CPP for all the required years.

The video visually shows how the general dropout provision and both child-raising provisions work, without using complex calculations - the picture tells the story.


The Canada Pension Plan, or CPP, has 3 features that make it particularly valuable as a source of retirement income:
1. Your money from CPP is guaranteed - no market risk.
2. It lasts until you die - no longevity risk.
3. CPP provides inflation protection.


In this video, we're only describing the basic CPP, or the original program. Currently, extra rules are being phased in as part of what's called the Additional CPP. For the Additional CPP, the numbers change and do different things, but the general idea is the same.

We'll be providing more information about the Additional CPP in a future video.

Most people who work in Canada are required to contribute a portion of their employment earnings towards their own CPP retirement pension. You're funding your own retirement pension when you contribute a portion of your earnings into CPP.

How much you'll receive from the Canada Pension Plan depends on:
1. How much you contribute,
2. The number of years you contribute,
over your working life.

Your working life for CPP purposes begins when you turn 18, and it ends in the year you start receiving your CPP pension. You can start taking CPP any month between when you turn age 60, to when you turn age 70. Your CPP working life is formally called your contributory period.


The simple ice cube tray analogy that we introduce visually explains how a variety of Canada Pension Plan rules work, without using complex calculations - the picture tells the story.


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