Thinking about retirement? Learn about the Canada Pension Plan and the benefits of CPP sharing

July 2015

The CPP and recent changes

The Canada Pension Plan (CPP) provides a base replacement of earnings for retirees throughout Canada, excluding Quebec, where the Quebec Pension Plan (QPP) provides benefits. Changes have recently been made to the CPP that will be become fully implemented as of 2016. The Quebec Pension Plan, which provides benefits in the province of Quebec, has implemented similar changes that are currently effective. 

When can CPP payments be made? 
CPP payments can begin as early as the month after your 60th birthday and as late as age 70. You can choose whether to make early or delayed payments which can be beneficial based on your personal circumstances such as your income, other assets or health and life expectancy.

Post-Retirement Benefit (PRB)
If you continue working after you have begun receiving CPP pension benefits, you are eligible to continue making CPP contributions that will increase your monthly payments through the PRB. Talk to your advisor or access our complementary publication entitled “Canada Pension Plan” to find out about the PRB guidelines.



Sharing CPP with your spouse

CPP sharing, a form of income splitting, is a tax planning strategy that shifts income from a higher income earner to a lower income earner in order to reduce the overall tax paid by the family.

This strategy may offer significant tax savings for individuals that are in different tax brackets. Canadian residents who receive eligible pension income can allocate up to 50% of their CPP payment to their spouse thereby reducing taxes by shifting income from a higher income earner to a spouse who is in a lower tax bracket. 

Who is eligible?

  • At least one spouse must be a CPP contributor
  • Both spouses must be at least 60 years of age and must be receiving or have already applied for a CPP

     Managing your wealth effectively requires an annual review of all CPP opportunities and CPP sharing benefits. To learn more on how to capitalize on your personal CPP payments and CPP sharing strategies in order to help you save taxes and enhance your family’s wealth please contact your Investment Advisor. You can also receive a complimentary copy of our publications entitled “Canada Pension Plan” and “Canada Pension Plan Sharing”.


Previous Tax & Estate Planning Strategies
View items by year:






  • 2015 Tax Planning Checklist

    Dec 07, 2015

    Financial planning is time sensitive. While the following list is not exhaustive, here are some items that must be considered, incurred or paid prior to year-end in order to be included in your 2015 tax return.
    read more
  • Anticipated tax changes with the new Liberal Government

    Oct 27, 2015

    Knowing the results of our most recent federal election, we should take a look at what our new government might have in store for taxpayers. During the election, the Liberal party platform had several initiatives and promises that affected taxpayers.
    read more
  • Registered Retirement Income Fund (RRIF)

    Sep 15, 2015

    A RRIF is a popular RRSP maturity option. While RRSPs allow you to accumulate tax-sheltered savings for retirement, RRIFs generate a taxable retirement income stream from these savings.
    read more
  • Healthcare - Time is of the essence

    Aug 05, 2015

    Living benefits are getting more and more sophisticated. Faster medical treatment is a concern for all of us. What options are available to cut wait times?
    read more
  • Learn about the Canada Pension Plan

    Jul 02, 2015

    Are you nearing the age of retirement? Time to review your Canada Pension Plan strategies and take into consideration the recent changes that have been made to the CPP and QPP which may affect your original retirement plans.
    read more
  • Cottage succession: Keeping it in the family

    Jun 01, 2015

    Do you have a cottage that you want to transfer to future generations without family conflict or potential tax liability? Transferring ownership of a cottage can have unique estate planning issues.
    read more
  • Take advantage of the newly increased TFSA contribution limit of $10,000

    May 01, 2015

    The recently introduced Federal Budget for 2015 includes an increase to the Tax-Free Savings Account (TFSA) contribution limit from $5,500 to $10,000 per year. The Canada Revenue Agency is allowing this new change to be effective immediately – prior to the regular process of the Budget passing through Parliament and before receiving Royal Assent.
    read more
  • Federal Budget 2015

    Apr 21, 2015

    TFSA contribution limit increase, lower RRIF minimum annual withdrawals and reduced tax rates for small businesses. We take a look at the 2015 Federal Budget and how it affects you.
    read more
  • Estate Bonds

    Apr 09, 2015

    Life Insurance can be used as an effective way of accumulating and transferring wealth. An Estate Bond is a financial planning strategy that transfers non registered savings from a tax exposed investment to an exempt life insurance policy.
    read more
  • Changes to the "exempt test" for life insurance policies

    Mar 03, 2015

    Our insurance legislative environment is known to be fairly stable. However, for the first time in many years, major changes to the legislation will modify the landscape of tax-exempt life insurance contracts and prescribed annuities. What are the impacts?
    read more
  • Tax Filing Changes: Foreign Income Verification Statement

    Jan 30, 2015

    The Foreign Income Verification Statement (“T1135”) has been around since 1997. Its purpose is to capture a Canadian taxpayer’s worldwide income and to gain disclosure of foreign holdings.
    read more