CPP (Canada Pension Plan) Retirement Calculator

To calculate your CPP retirement pension, the first thing you should do is go online to the My Service Canada site and obtain your most recent CPP Statement of Contributions (SOC).

Also, on the My Service Canada site, you can request an estimate of your CPP benefits. These estimates are very accurate if you’ll be eligible for your CPP retirement pension in the next few years.

The most accurate source with details on how to calculate the monthly Pension Payment is by Doug Runchey from Retire Happy. He is also providing a great calculator to download on this Finiki site.

You’ll need to get your statements from the government and fill in the provided spreadsheet. The spreadsheet calculates CPP amounts for ages 60-70.

As seen on the details, there many factors involved including number of contributory months (NCM), Unadjusted Pensionable Earnings (UPE), Year’s Maximum Pensionable Earnings (YMPE), Total Adjusted Pensionable Earnings (TAPE), Average Monthly Pensionable Earnings (AMPE), and then you can calculate your retirement for benefit calculation (RTR-FBC).

There is one very interesting fact about the CPP which allows parents to get more CPP by using the Child Rearing Drop Out. This is explained in detail here. Many people don’t know about CRDO and just miss out on higher CPP payments.

Why should you apply for the CRDO?

Applying for the CRDO may increase your CPP benefit by excluding from the calculation the periods when your income either stopped or was lower. The CRDO could also help you meet the eligibility requirements for a disability benefit, should you need it. In the event of your death, it could help you meet the contributory requirements to provide benefits to your estate and survivors.

You must apply for the CDRO to qualify. If you were a parent raising children, you will not get the CDRO automatically.