A new year means new limits and data. Here’s a list of new financial planning data for 2018 (In case you want to compare this to past years, I’ve included old data as well).
If you need any help with your rrsp deposits or clarification on other retirement issues please do not hesitate to contact Henley Financial and Wealth Management, we are here to ensure your financial success.
Pension and RRSP contribution limits
- The new limit for RRSPs for 2018 is 18% of the previous year’s earned income or $26,230 whichever is lower less the Pension Adjustment (PA).
- The limit for Deferred Profit Sharing Plans is $13,250
- The limit for Defined Contribution Pensions is $26,500
Remember that contributions made in January and February of 2018 can be used as a tax deduction for the 2017 tax year.
More articles on RRSPs
- How to find out your exact RRSP limits
- The proper use of RRSPs: the one formula approach
- Lesser Known Facts of RRSPs
- Do Spousal RRSPs still make sense?
- Advantages of Self-Directed RRSPs
TFSA limits
- The TFSA limit for 2018 is $5,500.
- The cumulative limit since 2009 is $57,500
TFSA Limits for past years
More articles on the TFSA
- TFSA Basics: Contributions and Withdrawals
- Understanding the Tax-Free Savings Account (TFSA)
- TFSA or RRSP: Why not do both?
Canada Pension Plan (CPP)
Lots of changes are happening with CPP but here’s some of the most important planning data.
- Yearly Maximum Pensionable Earning (YMPE) – $55,900
- Maximum CPP Retirement Benefit – $1134.17 per month
- Maximum CPP Disability benefit – $1335.83 per month
- Maximum CPP Survivors Benefit
- Under age 65 – $614.62
- Over age 65 – $680.50
Reduction of CPP for early benefit – 0.6% for every month prior to age 65. At age 60, the reduction is 36%.
CPP rates for past years:
For more information on CPP
- Four reasons why you should still take CPP early (post 2011 rules)
- Three current debates of Canada Pension Plan
- How much will you get from Canada Pension Plan in Retirement?
- New proposed changes for CPP
- Will Canada Pension Plan (CPP) be there when you retire?
Old Age Security (OAS)
- Maximum OAS – $586.66 per month
- The OAS Clawback (recovery) starts at $74,788 of income. At $121,720 of income OAS will be fully clawed back.
OAS rates for past years:
| Year | Maximum Monthly Benefit | Maximum Annual Benefit |
|---|---|---|
| 2018 | $586.66 | $7,039.92 |
| 2017 | $578.53 | $6,942.36 |
| 2016 | $570.52 | $6,846.24 |
| 2015 | $563.74 | $6,764.88 |
| 2014 | $551.54 | $6,618.48 |
| 2013 | $546.07 | $6,552.84 |
| 2012 | $540.12 | $6,481.44 |
| 2011 | $524.23 | $6,290.76 |
For more information on OAS Clawback:
New Federal Tax Brackets
For 2018, the tax rates have changed.
@ Henley Financial and Wealth Management Inc. 