In 2024, Canadian retirees are set to receive a significant increase in their pension benefits. The federal government has announced that starting in January 2024, the maximum annual payout for the Canada Pension Plan (CPP) will increase by 8.7%. This means that retirees who are eligible to receive the maximum CPP benefits will see an increase of $407 per year, bringing their total annual payout to $5,111.
This increase comes as a result of a recent review of the CPP and Old Age Security (OAS) programs, which found that many seniors were struggling to make ends meet with the current benefit levels. With the rising cost of living and increasing life expectancy, it has become more difficult for retirees to maintain their standard of living on fixed income from government pension plans. As a result, the government has decided to provide a much-needed boost to the CPP benefits in order to keep up with the rising cost of living.
It is estimated that over 20 million Canadians will be affected by this pension increase in 2024. This includes both current and future retirees who have made contributions to the CPP throughout their working years. Another positive aspect of this increase is that it will be fully indexed to inflation, ensuring that retirees continue to receive a fair and adequate amount in the years to come.
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