Mississauga-Malton MP Navdeep Bains Announces a Stronger Canada Pension Plan
Seven out of 10 Canadian workers will have their entire earnings covered and receive higher pension payments as a result of historic changes to strengthen the Canada Pension Plan (CPP).
Navdeep Bains, Member of Parliament for Mississauga-Malton and Canada’s Minister of Innovation, Science and Economic Development, today announced details of the CPP enhancement.
One in four Canadian families approaching retirement — 1.1 million families — is at risk of not saving enough. This agreement will allow future generations of Canadians to count on a more generous public pension system in their retirement years. All nine participating CPP provinces have confirmed their support for the agreement.
When fully implemented, these changes will give Canadians a more secure and dignified retirement by:
- Increasing income replacement from one-quarter to one-third of pensionable earnings. Practically speaking, a hard working Canadian earning an average of $50,000 per year over their working life will receive $16,000 a year at retirement instead of today’s $12,000.
- Extending the range so that the maximum amount of earnings covered by the CPP is increased by 14 per cent. Under the current CPP, any Canadian making an average of $55,000 a year in average salary would receive the maximum pension payment. If the enhancement were fully in place today, this limit would be increased to about $63,000. At full implementation in 2025, the limit is projected to be $82,700.
“I am proud to serve a government that is committed to helping Canadians achieve a safe, secure and dignified retirement. The changes our government has made to the Canada Pension Plan will make more money available to Canadians when they retire. These changes will give Canadians a greater return on the investment they made in contributing to the CPP during their working years.”