Calculating CPP-R


#1

If you get CPP-D at 60, does Service Canada assume the minimum contribution for years 61-64 when they switch your CPP-D to CPP-R? Or do they just stop counting years above 60?


#2

My understanding is from talking to them that as long as you qualify for CPP-D, when you retire and collect your retirement CPP, they will pay you similarly as if you were working and continuing to make contributions thru those years - in your case from 60 to 65. I also think because you are on CPP-D, when you reach 65 you may ge a little more than you normally would if working and contributing. Via previous discussions, I will get approximately 80% of my CPP-D when I retire.


#3

That would be great.
Hopefully I’ll live long enough to find out. :slight_smile:


#4

Hope so!! Another person on this site also confirmed it was 80% of your CPP-D. Of course it is also taxed.


#5

Hi Jammer - The correct answer is that your entire period of CPP-D is excluded from your “contributory period”, which has a similar effect as if they projected your lifetime average earnings when you became disabled, through to age 65.
Your CPP disability pension is calculated as being 75% of your “calculated retirement pension” when you became disabled, plus a flat-rate benefit ($485.20 for 2018). If you want to estimate how much your retirement pension will be (in current-year dollars), you simply reverse those steps.
For example, if you were currently receiving CPP-D of $1,335.83, it would convert to a retirement pension of $1,134.17 ($1,335.83 - $485.20 = $850.63 / 75% = $1,134.17), which works out to almost 85% of the CPP-D amount.
If you had a very small CPP-D amount though (let’s say $600), it would convert to a retirement pension of approx. $153.07 ($600 - $485.20 = $114.80 / 75% = $153.07, which works out to only 25% of the CPP-D amount.


#7

This makes my brain hurt. :frowning:

Is a 1.5% increase to CPP-D and CPP-R each year a reasonable assumption?

My CPP-D now is $x and my estimated CPP is $y which is 68.2% of x so if I increase CPP-D by 1.5% until age 65 and then take 68.2% of that, do I get my CPP-R?


#8

If you have a My Service Canada account you can log on and will have access to your CPP-D amount as well as CPP amounts based on when you retire.

https://www.canada.ca/en/employment-social-development/services/my-account.html


#9

Is that amount accurate given that I’m receiving CPP-D?
If I add 1.5% to that for each year until age 65 will I get a close number of what my CPP-R will be at 65?