I am on a Facebook group and one of the admin of that group posted:
“New CPI data came out today. This is the 11th month of data for the increase to CPP that will take effect Jan 1, 2023. So as of now the numbers are 1642.2/11=149.29/140.5=1.0625-1x100=6.256. The cost of living allowance now stands at a 6.3% increase for CPP with one month of data to go.”
If you go by that it would seem the annual increase should be at least 6%, if anybody aware of any inflation caps the government has in place such as nothing higher than 5% etc.
There’s no cap. In the US, they increased social security by 8.7%. I would expect it will be somewhere around 6.2%. It’s an okay increase but not enough to keep up with inflation. Food costs are up 10% and those probably are the thing most people on CPP are concerned about, since rent is usually protected. What really needs to come into play is the new Canada Disability Benefit which will raise everyone’s income hopefully to above the poverty level or 50% median income. Otherwise disabiled people will literally start to starve. CPPD doesn’t pay anywhere near enough for someone to live off of and certainly not during inflationary times.
Another reason for people entering the work force to get a good private/group LTD policy with COLA built in. A goverment sponsored plan by itself will never keep someone out of poverty as the general public will always vote out a politician who raises CPP premiums enough to cover the cost of a disability program that provides a “good” income.
Mine has COLA but is capped at 2%.
Yeah, me too. I opted for a 3% COLA, but now regret not bumping that up to 5%.
Do you mind sharing what facebook page? I have yet to find any groups that talk about CPPD. Most are for ODSP (Ontario).
You are absolutely right. There is hardly any info on CPPD on Facebook group. I am on a CPP OAS Facebook group. If you search it, it is probably the only one that comes up. It is a private group with about 1400 members. Occasionally CPPD topics get discussed.
Now that the October CPI data (6.9%) is out, the total increase starting January 2023 should be 6.5%
I haven’t been able to find the official announcement yet. I can’t tell if the calculations you posted are correct. I know that CPP uses whole year average year 2 (2022) divided by whole year average in year 1 (2021). So you can’t look at 2022 in isolation. There should be an official announcement soon.
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Google tells me the increase is 6.3% in Canada and 8.4% in the US.
The google link is from OPTrust’s own pension plan which calculates from Oct-Sep, Canada’s CPP increase is calculated (in conjunction with previous years values) from Nov-Oct and per that calculation it should be 6.5%, which is still not great compared to the US. StatsCan has it s own model\formula when it come to CPI calculation so this is no surprise and there is already a lot of criticism as to how it calculates what it calculates. Seems it is designed to somehow keep the numbers down as the government knows they will have to pay more if they put the real numbers out there, just my 2 cents.
As advised earlier that as per my calculation that CPP increase should be 6.5%, today government of Canada has also officially announced that it will be 6.5%.
Big chunka change. Unfortunately it appears that I already spent it on milk and bread.