If you’re planning for retirement in Canada, understanding how your pension is calculated is crucial. The Canada Pension Plan (CPP) is a government-run program that provides a source of income for retirees. The amount you receive from the CPP is based on a complex formula that takes into account your earnings, contributions, and the number of years you have been in the workforce.
Calculating your CPP can be a daunting task, but with a little knowledge and understanding, you can ensure that you are receiving the maximum amount you are entitled to. The first step is to know your average pensionable earnings, which is the average income you have earned throughout your working years.
Next, your contributions to the CPP are taken into account. The amount you contribute each year is determined by your income and a set percentage. These contributions are then used to calculate your CPP benefits. Finally, the number of years you have contributed to the plan is factored in. The longer you have been in the workforce, the higher your CPP benefits will be.
Understanding the Canada Pension Plan
The Canada Pension Plan (CPP) is a government program that provides income to retired and disabled individuals in Canada. The amount of CPP benefits that an individual receives is calculated based on various factors.
How is the CPP Calculated?
The CPP is calculated using a formula that takes into account an individual’s earnings and the number of years they have contributed to the plan. The formula uses a specific formula to determine the average earnings and applies a benefit rate to calculate the CPP amount.
First, the CPP formula determines the average earnings by taking the individual’s earnings for each year they contributed to the plan and indexing them to current dollars. The formula then takes the average of these earnings over a certain number of years, called the contributory period.
Once the average earnings are calculated, the CPP formula applies a benefit rate to determine the CPP amount. The benefit rate determines the percentage of the average earnings that an individual will receive as CPP benefits. The actual benefit rate depends on the years of contributions and the total amount of average earnings.
How Does the CPP Work in Canada?
The Canada Pension Plan is a mandatory program for most individuals who work in Canada. A portion of an individual’s earnings is deducted and contributed to the CPP while they are working. These contributions are then used to fund the CPP and provide benefits to retired and disabled individuals.
The amount of CPP benefits that an individual receives is based on the number of years they contributed to the plan and their average earnings during that period. The CPP benefits are paid monthly and are subject to annual increases based on the Consumer Price Index.
It is important for individuals to understand how the CPP is calculated and how it works to plan for their retirement and ensure they receive the maximum benefits they are entitled to.
Eligibility for the Canada Pension Plan
In order to be eligible for the Canada Pension Plan (CPP), there are several criteria that you must meet. First and foremost, you must have made enough contributions to the CPP during your working years. The amount of contributions required may vary depending on the year in which you turn 65, so it’s important to check the latest requirements.
In addition to the contributions, you must also have reached the age of 65. However, it’s important to note that you can choose to start receiving your CPP retirement pension as early as age 60, but your monthly payments will be reduced. On the other hand, if you decide to delay receiving your CPP pension until after the age of 65, your payments will be increased.
Furthermore, you must have stopped working or have a significant reduction in your income. This means that you must have either retired or reduced your work hours to meet the eligibility requirements for the CPP.
Lastly, you must have lived in Canada for at least 40 years after the age of 18. This requirement ensures that you have made a substantial contribution to the Canadian workforce and economy.
Once you meet all of these eligibility requirements, your Canada Pension Plan retirement pension will be calculated based on various factors, including your earnings throughout your working years and the age at which you start receiving your CPP pension.
It’s important to note that the CPP is a valuable source of income for retirees, so understanding the eligibility requirements and how your pension is calculated can help you plan for your retirement effectively.
How Contributions to the Canada Pension Plan Work
Contributions to the Canada Pension Plan (CPP) are an essential part of ensuring financial security during retirement. The CPP is a government pension plan that provides eligible Canadians with a stable source of income after they retire.
The amount of CPP pension you receive is calculated based on the contributions you make throughout your working life. As an employee, you contribute a certain percentage of your income to the CPP, which is matched by your employer. If you’re self-employed, you are responsible for both the employee and employer portions of the contributions.
The CPP contribution rates are set annually, and the amount you contribute is based on your income up to a maximum limit. For example, in 2021, the contribution rate for employees is 5.45%, with a maximum limit of $61,600 of pensionable earnings. This means that if your income is above $61,600, you will only contribute the maximum amount required.
It’s important to note that the CPP uses a formula to calculate your average earnings, which determines the amount of pension you’re eligible to receive. This formula takes into account your contribution period, average earnings during that period, and the general drop-out provision, which excludes certain low-income years from the calculation.
For most Canadians, the CPP is an integral part of their retirement income. Understanding how contributions to the CPP work can help you plan and make informed decisions regarding your finances.
Calculating Your Canada Pension Plan Retirement Benefit
Your Canada Pension Plan (CPP) retirement benefit is calculated based on several factors. It is important to understand how the plan works and what factors are taken into account when determining your CPP retirement benefit.
Firstly, the amount of your CPP retirement benefit is based on your contributions to the CPP throughout your working years. These contributions are deducted from your paycheck and deposited into the CPP fund. The more you contribute, the higher your CPP retirement benefit will be.
Secondly, the age at which you begin receiving your CPP retirement benefit will also impact the amount you receive. You can choose to start receiving your benefit as early as age 60, but your monthly payment amount will be reduced. On the other hand, if you delay receiving your benefit until after age 65, your monthly payment amount will be increased.
Lastly, the number of years of contributions you have made to the CPP will also affect the amount of your retirement benefit. The CPP retirement benefit is based on a formula that takes into account your average earnings over the course of your contributory period. The more years of contributions you have made, the higher your average earnings will be and the larger your CPP retirement benefit will be.
In conclusion, your CPP retirement benefit is calculated based on the amount of your contributions, the age at which you begin receiving your benefit, and the number of years of contributions you have made. It is important to understand these factors and plan accordingly to maximize your CPP retirement benefit.
Factors Affecting Your Canada Pension Plan Benefit
Your Canada Pension Plan benefit is calculated based on several factors that include:
1. Your contribution history: The amount you have contributed to the Canada Pension Plan throughout your working years will directly impact the amount of pension you receive. The more you contribute, the higher your benefit will be.
2. Your average earnings: Your average earnings throughout your working years will also affect the amount of pension you receive. The Canada Pension Plan takes into account your best 25 years of earnings and calculates your benefit based on that average.
3. Age of retirement: The age at which you choose to retire can impact your Canada Pension Plan benefit. If you retire early, your benefit may be reduced. On the other hand, if you delay your retirement, your benefit may increase.
4. Early or late start: The Canada Pension Plan allows individuals to start receiving their pension as early as age 60 or as late as age 70. Starting your pension early may result in a reduced monthly amount, while starting it later may increase your monthly benefit.
5. Combined benefits: If you are also receiving benefits from other sources, such as the Old Age Security or other pensions, it may affect the amount of your Canada Pension Plan benefit.
6. Residency: Your residency status in Canada may also impact your Canada Pension Plan benefit. In order to qualify for the maximum benefit, you must have resided in Canada for at least 40 years after turning 18.
It is important to consider these factors when planning for your retirement and calculating your Canada Pension Plan benefit. Understanding how your benefit is calculated can help you make informed decisions and ensure a stable income during your retirement years.
Early or Late Canada Pension Plan Retirement
When it comes to the Canada Pension Plan (CPP), you have the option to retire early or late. The decision you make can have a significant impact on the amount of pension you receive.
Early Retirement
If you choose to retire early, you can start receiving your CPP pension as early as age 60. However, keep in mind that taking your pension early will result in a reduction in the monthly amount you receive. This reduction is calculated based on the number of months before your 65th birthday that you start receiving your pension.
It’s important to weigh the financial implications of retiring early. While you may access your pension sooner, you will receive a smaller monthly payment for the rest of your life.
Late Retirement
Alternatively, you can choose to delay receiving your CPP pension until after your 65th birthday. By doing so, you’ll be eligible for an increased monthly pension of up to 42% more than if you had started receiving it at age 65.
Deciding to delay your CPP pension can be a smart choice if you want to maximize your monthly income in retirement. However, it’s important to consider your personal financial situation and other sources of income before making this decision.
Overall, the choice between early or late CPP retirement ultimately depends on your individual circumstances and financial goals. Properly understanding the implications and planning accordingly will help you make an informed decision that suits your needs.
Maximum Canada Pension Plan Retirement Benefit
The maximum Canada Pension Plan (CPP) retirement benefit is a monthly payment that eligible individuals can receive upon reaching the age of retirement. The amount of the maximum CPP retirement benefit is calculated based on various factors, including the individual’s earnings throughout their working years and the age at which they choose to start receiving the pension.
Calculation Method
The maximum CPP retirement benefit is determined using a calculation method that considers the average earnings of an individual during their contributory period. The contributory period is the time frame during which the individual made contributions to the CPP, typically between the ages of 18 and the year before they start receiving the pension.
During the calculation, the individual’s earnings are adjusted to account for inflation and then divided by the average wages of all contributors to the CPP. The result is the individual’s CPP earnings factor, which is the percentage of the maximum CPP retirement benefit they are eligible to receive.
Maximum Benefit Amount
The maximum CPP retirement benefit amount is adjusted annually to account for changes in the average wage level in Canada. The maximum benefit is set at a certain percentage of the average wage, which is referred to as the Year’s Maximum Pensionable Earnings (YMPE). The YMPE is updated each year and serves as the upper limit for determining the maximum CPP retirement benefit.
For example, if the YMPE for a particular year is $60,000 and an individual’s CPP earnings factor is 0.65, they would be eligible for a maximum CPP retirement benefit of $39,000 per year, or $3,250 per month.
It’s important to note that not everyone will be eligible for the maximum CPP retirement benefit. The actual amount individuals receive may be lower, depending on their earnings history and the age at which they choose to start receiving the pension.
How to Apply for the Canada Pension Plan
If you are a resident of Canada and have reached the age of 60, you may be eligible to receive benefits from the Canada Pension Plan. Applying for these benefits is a relatively straightforward process that can be completed online or through the mail.
Online Application Process
To apply online for the Canada Pension Plan, you first need to ensure that you have the necessary information and documents. This includes your Social Insurance Number, your banking information for direct deposit, and your birth certificate or proof of Canadian citizenship or residency. Once you have these documents ready, you can visit the official Canada Pension Plan website and follow the instructions to complete the online application.
Mail Application Process
If you prefer to apply for the Canada Pension Plan benefits through the mail, you can request an application package by calling the Canada Pension Plan toll-free number. The package will include the necessary forms and instructions for filling them out. Once you have completed the forms, you can mail them to the address provided on the application package.
Regardless of whether you choose to apply online or through the mail, it is important to ensure that you provide all the required information accurately. Missing or incorrect information may delay the processing of your application.
| Canada Pension Plan | Application Process |
|---|---|
| Eligibility | – Be a resident of Canada |
| – Reached the age of 60 | |
| Online Application | – Visit the official Canada Pension Plan website |
| – Complete the online application | |
| Mail Application | – Call the Canada Pension Plan toll-free number to request an application package |
| – Fill out the forms and mail them to the provided address |
Once your application is submitted, it will be reviewed by the Canada Pension Plan authorities. If approved, you will start receiving your Canada Pension Plan benefits on a monthly basis, as determined by the calculations based on your contribution history.
Remember, it is important to plan ahead and apply for the Canada Pension Plan in a timely manner to ensure that you receive the benefits to which you are entitled.
Additional Benefits Available from the Canada Pension Plan
In addition to the basic retirement pension, the Canada Pension Plan also provides other benefits that individuals can access based on certain criteria. These additional benefits are available to eligible individuals and can provide financial support in various situations.
One of the additional benefits available from the Canada Pension Plan is the disability benefit. This benefit is designed to provide financial assistance to individuals who have a severe and prolonged disability that prevents them from working. To qualify for the disability benefit, individuals must meet certain medical criteria and have contributed to the Canada Pension Plan for a specified period.
Another benefit available from the Canada Pension Plan is the survivor’s pension. This benefit is designed to provide financial support to the surviving spouse or common-law partner of a deceased contributor. To be eligible for the survivor’s pension, individuals must meet certain criteria, such as being legally married or in a common-law relationship with the deceased contributor and being between the ages of 60 and 65.
The Canada Pension Plan also provides a children’s benefit, which is available to eligible individuals who have dependent children. This benefit is designed to provide financial support to help with the cost of raising children. To qualify for the children’s benefit, individuals must meet certain criteria, such as being eligible for the Canada Pension Plan and having dependent children under the age of 18.
| Benefit | Criteria |
|---|---|
| Disability benefit | Severe and prolonged disability, contribution to the Canada Pension Plan |
| Survivor’s pension | Legally married or in a common-law relationship with the deceased contributor, between the ages of 60 and 65 |
| Children’s benefit | Eligible for the Canada Pension Plan, dependent children under the age of 18 |
It is important to note that the amount of these additional benefits is calculated based on various factors, including the individual’s earnings, contributions to the Canada Pension Plan, and the specific eligibility criteria for each benefit.
In conclusion, the Canada Pension Plan offers additional benefits aside from the basic retirement pension. These benefits include the disability benefit, survivor’s pension, and children’s benefit, which provide financial support to eligible individuals in different circumstances. Understanding the criteria for each benefit is crucial in determining eligibility and the amount of financial assistance one may receive from the Canada Pension Plan.
Canada Pension Plan Disability Benefits
The Canada Pension Plan Disability Benefits (CPP-D) is a program designed to provide financial support for individuals who have a severe and prolonged disability that prevents them from working. These benefits are calculated based on the individual’s contributions to the Canada Pension Plan (CPP).
To be eligible for CPP-D benefits, individuals must have made enough contributions to the CPP and must have a disability that is expected to last for at least one year or result in death. The disability must also prevent the individual from being able to regularly work at any job.
When applying for CPP-D benefits, individuals are required to provide medical documentation to support their claim. This documentation must demonstrate that the disability is severe and prolonged, and that it prevents the individual from being able to work.
Once approved for CPP-D benefits, the amount of the monthly payment is calculated based on the individual’s average annual earnings and their contributions to the CPP. The exact formula used to calculate the benefit amount is complex and takes into account a variety of factors, including the number of contributory years the individual has, their average earnings, and the year in which they became disabled.
It’s important to note that CPP-D benefits are not automatically granted to all individuals who apply. Each application is carefully reviewed, and decisions are based on the individual’s specific circumstances and the medical evidence provided. If an application is denied, individuals have the right to appeal the decision.
In conclusion, the Canada Pension Plan Disability Benefits provide financial support to individuals who have a severe and prolonged disability that prevents them from working. These benefits are calculated based on the individual’s contributions to the CPP and are subject to approval based on medical documentation and individual circumstances.
What Happens to the Canada Pension Plan if You Work or Live Outside Canada
If you work or live outside of Canada, you may be wondering what happens to your Canada Pension Plan (CPP) benefits. The good news is that in most cases, you can still receive your CPP pension, as long as you have contributed to the plan.
Contributions
The amount of CPP pension you receive is calculated based on the contributions you have made throughout your working life. Even if you work or live outside of Canada, you are still eligible to contribute to the CPP. This means that you can continue to build up your pension while living abroad.
However, it’s worth noting that if you are working outside of Canada and contributing to a foreign social security system, you may also be required to contribute to the CPP. This is to ensure that you receive credit for your foreign contributions and that your CPP pension is calculated correctly.
Residence Requirements
In order to receive your CPP pension, you must meet certain residence requirements. These requirements include having made at least one valid contribution to the CPP and having lived in Canada for at least one year after reaching the age of 18.
If you have lived or worked outside of Canada for an extended period of time, you may still be eligible for CPP benefits. The Canadian government has bilateral social security agreements with many countries, which can help you qualify for CPP even if you didn’t live in Canada for the required period.
| Country | Agreement |
|---|---|
| United States | Canada-United States Social Security Agreement |
| United Kingdom | Canada-United Kingdom Social Security Agreement |
| Australia | Canada-Australia Social Security Agreement |
| …and many more | … |
If you have lived or worked in any of these countries, you may be able to count your foreign residence or work towards the residence requirements for CPP benefits.
It’s important to note that the amount of your CPP pension may be affected if you have lived or worked outside of Canada. The CPP is based on a formula that takes into account your average earnings and the number of years you have contributed to the plan. If you have gaps in your contributions due to living or working abroad, it could result in a lower CPP pension.
Overall, if you work or live outside of Canada, it’s important to understand the implications for your CPP pension. Make sure to review the residence requirements and consider any bilateral social security agreements that may help you qualify for CPP benefits. Consulting with a financial advisor or contacting Service Canada can also provide you with more information and guidance regarding your specific situation.
Canada Pension Plan Survivor Benefits
In addition to providing retirement benefits, the Canada Pension Plan also offers survivor benefits. These benefits are designed to provide financial support to the surviving spouses or common-law partners of deceased plan contributors.
To qualify for survivor benefits, the deceased plan contributor must have made contributions to the Canada Pension Plan. The amount of the survivor benefit is based on the deceased contributor’s pension credits. The longer the deceased contributor made contributions, the higher the survivor benefit will be.
When a plan contributor passes away, their surviving spouse or common-law partner can apply for survivor benefits. The survivor benefit amount will depend on various factors including the age of the survivor and their relationship to the deceased contributor.
The survivor benefits provided by the Canada Pension Plan can help support the financial needs of the surviving spouse or common-law partner after the loss of their loved one. These benefits provide a measure of financial security and can assist with daily living expenses.
It is important to note that survivor benefits from the Canada Pension Plan are not automatic. The surviving spouse or common-law partner must apply for these benefits and meet the eligibility criteria. The application process may require providing documentation such as a death certificate and proof of relationship to the deceased contributor.
Overall, the Canada Pension Plan provides survivor benefits to help alleviate the financial burden on surviving spouses or common-law partners. Understanding the eligibility criteria and application process is essential for those who may be facing the loss of a loved one and need financial support.
How Taxes Affect Your Canada Pension Plan Benefit
When calculating the amount of your Canada Pension Plan (CPP) benefit, it’s important to consider the impact of taxes. The CPP benefit is calculated based on your contributions to the plan throughout your working years, and it is considered taxable income in Canada.
This means that when you receive your CPP benefits, they are subject to federal and provincial income taxes. The amount of tax you pay on your CPP benefit will depend on your total income from all sources, including CPP, and your tax bracket.
It’s important to note that taxes are not deducted automatically from your CPP payments. Instead, you will need to include your CPP benefits as income on your annual tax return. The government will then calculate the amount of tax you owe based on your total income.
While taxes can reduce the amount of your CPP benefit, it’s still an important source of income for many Canadians during retirement. It’s important to plan accordingly and factor in any taxes you may owe on your CPP benefits.
If you have any questions about how taxes may affect your CPP benefit, it’s recommended that you consult with a tax professional or financial advisor. They can help you understand your specific tax situation and ensure you are properly accounting for any taxes owed on your CPP benefits.
Ensuring Accuracy in Your Canada Pension Plan Calculations
When it comes to calculating your pension plan in Canada, accuracy is crucial. The Canada Pension Plan (CPP) is an important source of income for many Canadians, so it’s essential to ensure that your calculations are correct.
Keep Track of Your Earnings
One key factor in accurately calculating your CPP is keeping track of your earnings throughout your working years. The CPP is based on the average earnings you received during your contributory period, which is typically from age 18 to 65. Keeping detailed records of your employment income will help ensure that your calculations are accurate.
Understand the Eligibility Requirements
It’s important to understand the eligibility requirements for CPP in order to ensure accurate calculations. To qualify for CPP, you must have made at least one valid contribution, which means you must have worked and made contributions to the CPP during your contributory period. Additionally, you must have reached the age of 60 and have stopped working, or you must have a disability that prevents you from working.
Properly Calculate Your Pensionable Earnings
When calculating your CPP benefit, it’s important to accurately determine your pensionable earnings. Pensionable earnings are the income on which you have made CPP contributions and are subject to the CPP’s maximum earnings limit. This limit changes each year, so it’s essential to ensure that you are using the correct limit for the applicable year when calculating your benefits.
In conclusion, ensuring accuracy in your Canada Pension Plan calculations is crucial for receiving the correct benefits. By keeping track of your earnings, understanding the eligibility requirements, and properly calculating your pensionable earnings, you can ensure that your CPP calculations are accurate and receive the correct amount of income.
Planning Ahead for Canada Pension Plan Retirement
When it comes to retiring in Canada, having a solid plan for your pension is essential. The Canada Pension Plan (CPP) is a program designed to provide retirees with a steady income in their golden years. It is important to understand how this pension is calculated and to plan ahead accordingly.
The CPP retirement pension is calculated based on the number of years you have made contributions to the plan and the average amount of your earnings during those years. It is important to note that the maximum CPP retirement pension amount is adjusted each year. Therefore, it is crucial to stay updated on any changes that may affect your future pension income.
In order to plan ahead for your Canada Pension Plan retirement, it is advisable to keep track of your CPP contributions throughout your working years. This can be done by reviewing your annual CPP Statement of Contributions. Additionally, it is recommended to estimate your future retirement income by using the online CPP retirement pension calculator provided by the Government of Canada.
By keeping an eye on your CPP contributions and estimating your retirement income, you will be better prepared to make informed decisions regarding your retirement. It may be beneficial to consult with a financial advisor who can help you create a comprehensive retirement plan that includes your CPP pension and any other sources of income, such as personal savings or investments.
Planning ahead for your Canada Pension Plan retirement will give you peace of mind and allow you to enjoy your golden years to the fullest. Start early, stay informed, and make smart financial decisions to ensure a comfortable and secure retirement.
Resources for More Information on the Canada Pension Plan
If you want to learn more about how the Canada Pension Plan is calculated and how it can benefit you, below are some resources that you may find helpful:
1. Government of Canada Website: The official website of the Government of Canada provides detailed information about the Canada Pension Plan. You can find information on how the pension plan is calculated, eligibility criteria, and how to apply for benefits.
2. Canada Pension Plan Investment Board: The Canada Pension Plan Investment Board is responsible for investing the funds of the Canada Pension Plan. Their website offers useful information on how the plan is managed and the investment strategies used to ensure the long-term sustainability of the pension fund.
3. Service Canada: Service Canada is the government agency that administers the Canada Pension Plan. They can provide information on how to apply for benefits, calculate your pension amount, and answer any questions you may have about the plan.
4. Financial Advisors: If you are looking for personalized advice on how the Canada Pension Plan fits into your overall retirement plan, it may be helpful to consult a financial advisor. They can provide guidance on optimizing your pension benefits and help you plan for a comfortable retirement.
By exploring these resources, you will gain a better understanding of how the Canada Pension Plan is calculated and how it can support your retirement goals. It is important to stay informed and make the most of this valuable retirement benefit.
Final Tips for Optimizing Your Canada Pension Plan Benefit
As you plan for retirement, it’s important to consider how to optimize your Canada Pension Plan (CPP) benefit. Here are some final tips to help you make the most of your CPP:
1. Contribute for the maximum years: The amount of CPP you receive is based on the contributions you make over your working years. To maximize your benefit, contribute to the CPP for the maximum number of years allowed, which is typically 39 years.
2. Delay your CPP start date: While you can start receiving CPP as early as age 60, your benefit amount will be reduced if you choose to start early. Consider delaying your CPP start date until age 65 or even 70, as this can significantly increase your monthly benefit.
3. Understand the drop-out provision: The CPP allows you to drop out low or zero-earning years when calculating your average pensionable earnings. Take advantage of this provision by understanding how it works and ensuring that the years with the lowest earnings are dropped from your calculation.
4. Coordinate with other retirement income sources: If you have other sources of retirement income, such as a workplace pension or RRSP, it’s important to consider how these sources will coordinate with your CPP benefit. Seeking professional financial advice can help you optimize your overall retirement income plan.
5. Stay informed about CPP changes: The CPP undergoes periodic changes, such as adjustments to contribution rates and benefit calculations. Stay informed about these changes to ensure you’re maximizing your CPP benefit and making informed decisions about your retirement planning.
By following these final tips, you can optimize your Canada Pension Plan benefit and enhance your retirement income for a more secure future.
Q&A:
What is the Canada Pension Plan?
The Canada Pension Plan is a government-run pension program that provides retirement, disability, and survivor benefits to eligible Canadian residents.
How is the Canada Pension Plan calculated?
The Canada Pension Plan is calculated based on your contributions to the plan throughout your working career. The amount you receive in retirement is determined by a formula that takes into account the average earnings over your lifetime, the number of years you have contributed to the plan, and the age at which you choose to start receiving benefits.
Can I start receiving Canada Pension Plan benefits before the age of 65?
Yes, you can start receiving Canada Pension Plan benefits as early as age 60. However, by starting benefits before the age of 65, your monthly payments will be reduced. If you choose to delay receiving benefits, your monthly payments will be increased.
What happens to my Canada Pension Plan contributions if I move out of Canada?
If you move out of Canada, you are still eligible to receive Canada Pension Plan benefits as long as you have contributed to the plan for the required number of years. However, the amount you receive may be affected by your country of residence and any social security agreements in place between Canada and that country.
Can I contribute to the Canada Pension Plan if I am self-employed?
Yes, if you are self-employed, you are still required to contribute to the Canada Pension Plan. The contribution rates and rules are the same as for employees who are not self-employed.
What is the Canada Pension Plan?
The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. It provides income to retired or disabled contributors and their survivors.