Take the quiz to understand how much you know about the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP).
If you begin taking CPP/QPP before age 65, your CPP/QPP is reduced by 0.6% for each month up to and including the month you turn 65, calculated from the month you begin receiving your pension. This amounts to a maximum reduction of 36% if you start receiving CPP the month after your 60th birthday.
Answer: C $1,154.58 — this translates to just over $13,800 per year before income tax (yes Virginia, CPP/QPP is taxable, sigh).
Answer: True — we kid you not. The average is much lower than the maximum for several reasons. First, lots of us take CPP/QPP early, with as much as 36% permanent reduction to start pension benefits between age 60 and 65; and not everyone earns the maximum amount, which is $57,400 for 2019. Last but not least, not everyone pays in long enough to qualify for the maximum.
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