Fitness Instructor

Jayden is a 24-year-old fitness instructor. He combines several part-time jobs at fitness centres around Mississauga and Etobicoke. His income fluctuates, but in a typical year he brings in about $27,500, roughly half the average wage.

At his current income level, Jayden was on track to retire after a working lifetime with a CPP benefit of about $480 a month. With the planned benefit increase, Jayden will receive an additional $150 a month in CPP retirement benefits, giving him a total CPP income of $7,585 a year, or about $630 a month.

This year, Jayden will contribute about $1,190 to the CPP. With the changes agreed to, Jayden will contribute another $265 annually. In addition to the tax credits Jayden already receives for his CPP contributions, the additional $265 in contributions will be tax-deductible, reducing Jayden’s net income when he files his income tax return.

Dental Assistant

Kendra is a part-time dental assistant in Calgary. In a typical year, she earns about $35,000, around two-thirds of the average wage.

With her current income, Kendra was expecting a CPP retirement benefit of about $695* a month. At the higher CPP benefit level agreed to by Ottawa and the provinces, Kendra would receive about $915 a month if she makes expanded contributions to the CPP over her whole career.

Kendra currently saves about $1,560 a year through the CPP. She will eventually put away another $350 a year. The additional contributions will be tax-deductible.

Bank Employee

Amanda is a loan officer working in a bank in Victoria, the same bank she has worked in since graduating with a Bachelor of Commerce from the University of Victoria. Her 2016 earnings will be $50,000, close to the average wage.

With this level of income, Amanda could have expected to receive an annual CPP retirement benefit of roughly $1,000 a month. With the enhanced CPP benefit, Amanda can look forward to about $1,310 per month.

In addition to the $2,300 a year that Amanda currently saves through the CPP (matched by her employer), she will save an additional $510 each year through the enhanced CPP. This additional contribution will be tax-deductible.

Electrician

Kyle is an experienced electrician living in Squamish, BC, and working for a company that manufactures and installs green home heating and cooling systems in the Lower Mainland. In 2016, he’ll earn $65,000, significantly more than the ceiling on earnings covered by the current CPP ($54,900).

Earning this level of income over a working lifetime, Kyle could expect to receive the maximum CPP retirement benefit: about $1,100 a month. With the new and improved CPP, all of Kyle’s earnings will go toward saving for a higher CPP retirement benefit. Instead of the $1,100 monthly maximum benefit Kyle could have hoped to receive, he will take home approximately $1,470 a month, an increase of almost $380.

In 2016, Kyle will contribute the maximum to CPP: about $2,545. With the changes made to CPP, Kyle will put more aside for retirement through the CPP. In 2016 terms, he will save an additional $950 a year, for a total CPP contribution of just under $3,500 a year (matched equally by his employer). Kyle’s additional contribution will be tax-deductible when he files his income tax return.

*all benefits calculated in 2016 dollars

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