CPP scaled
CPP scaled

Great question! There is so much uncertainty these days on the various pension plans (or lack of) amongst various countries. The CPP (Canadian Pension Plan) has been under debate for decades now. So the question of the day is, how long should you keep contributing to CPP? Or how long should you keep CPP contributions going in to the plan?

Well, it sounds like it depends on how much you have contributed to date. While many think they have been paying maximum amounts, that doesn’t mean you have contributed enough to actually get the maximum amount from the pension plan.

Another thing to consider is if you have had a matrimonial split, then some of your CPP may be allotted to go to your ex which means less for you. Ouch!

Also consider, what other plans you have been part of i.e. private plans through work, RRSP, investments etc. And how long do you plan on working? Full-time, part-time or otherwise. How much do you think you need to go into old age with? What other equity do you have to live on?

So in summary what to consider:

  1. How much have you already contributed?
  2. Was there a matrimonial split costing some CPP credits yo you?
  3. What  other savings do you have? Private pension(s), RRSP, equity, etc.
  4. Calculation of how much you may need to have throughout your older years to live comfortably.
  5. When do you plan on retiring?
  6. How do you feel about your overall financial health?