Canada Pension Boost Confirmed ! Expected CPP, GIS and OAS Pension Increase in August 2024 (2024)

You must consider reading this post, in order to get a detailed explanation of Pension Boost Canada: Expected CPP and OAS Pension Increase in July 2024, Full News

Pension Boost Canada

The Canadian government offers a number of programs to address the two main concerns of most retirees: health and pensions. Your payments under the Old Age Security (OAS) and Canada Pension Plan (CPP) are indexed annually to account for increases in inflation or the cost of living.

There will be a 4.8% rise in your pension starting in January 2024. All pensioners, survivor pensions, and the deferred pensions of former and divested members are subject to the yearly cost of living adjustment (COLA). Every January, Statistics Canada reports the Consumer Price Index (CPI), which measures the rise in the cost of living and is used to calculate pensions.

Pension Boost Canada ensures that your pension does not depreciate over time and shields it from the effects of inflation. Hence, we recommend reading this post to get complete details about upcoming increase in CPP and OAS pension amounts.

Expected CPP and OAS Pension Increase in July 2024

CPP Pension Increase 2024

Many modifications are being made to the CPP pension, which will take effect the next year and affect both Canadians who are employed and pensioners. From 2023 to 2024, CPP benefits increased by 4.4%. Due to a notable increase in inflation over the previous 12 months, this increase is substantially bigger than what we have seen in prior years.

In 2024, the maximum monthly CPP payout will be $1,364.60, as opposed to $1,306.57 in 2023, due to the average 4.4% rise in CPI rates. In 2024, the average monthly CPP payout will be $758.32.The effect of the income cap increase from $66,000 to $68,500 will be seen by Canadians who are still employed.

A “second additional CPP contribution,” or CPP2, is also being introduced by the government. It is set above the highest pensionable income threshold. For retirees, the benefit would be rather little.

OAS Pension Increase 2024

OAS benefits have increased by 0.80% for the quarter ending in January–July 2024. OAS payments are quarterly adjusted for increases in the cost of living in January, April, July, and October, as opposed to CPP. The present 2024 increase in OAS is calculated using CPI data for two periods of three months each.

A 0.8% increase in the CPI will result in the maximum monthly OAS payments for January through July 2024 being $713.34 (for those 65 to 74 years old) and $784.67 (for those 75 years and above), respectively. Benefits automatically increased by 10% for seniors 75 years of age or older as of July 2022.

This increase will continue until 2024. Seniors over 65 currently get a maximum monthly OAS payout of $784.67, which is 9% less than the amount received by those between 65 and 74, who receive $713.34.

Concluding Words

Older Canadians receive financial help from the OAS and CPP pension, which are important parts of their retirement income. It ensures a fair distribution based on financial requirements by being responsive to individual income levels and geared to adapt for inflation.

The purpose of Pension Boost Canada financing is to lessen financial pressures on seniors and allow them to carry on with their usual life. It is usually a good idea to start planning before you reach retirement age since cash retirement savings can only partially fill the gap between pension and costs, and they are also susceptible to inflation.

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