Canada Post-Retirement Benefit 2024: Eligibility, Payment Amounts, and How to Apply

As Canadians plan for retirement, understanding the Post-Retirement Benefit (PRB) is essential for those continuing to work after collecting their Canada Pension Plan (CPP) payments. Introduced to provide additional support to working seniors, the PRB helps retirees increase their retirement income. Here’s a detailed guide to the Canada Post-Retirement Benefit in 2024, including eligibility, payment amounts, and how to apply.

What Is the Canada Post-Retirement Benefit (PRB)?

The Post-Retirement Benefit (PRB) is a monthly benefit for Canadians aged 60 to 70 who continue working and contribute to the Canada Pension Plan (CPP) even after starting to receive their CPP retirement benefits. The PRB increases retirement income and is paid for life.

Unlike regular CPP benefits, the PRB is designed to reflect the additional contributions made by those who remain employed during their retirement years. It ensures that retirees can boost their monthly income even while receiving CPP.

Who Is Eligible for the PRB?

Eligibility for the PRB depends on the following criteria:

1. Age Requirement: You must be between the ages of 60 and 70.
2. CPP Retirement Payments: You are already receiving your CPP retirement pension.
3. CPP Contributions: You continue to work and make CPP contributions, even after collecting your retirement pension.
4. Employer Contributions: If you’re employed, your employer will also continue contributing to your CPP.

You are not required to apply for the PRB if you are between 60 and 65 and working, as contributions are automatically deducted from your pay. However, if you are 65 to 70 years old and still working, you can choose whether or not to contribute to the CPP. Opting in will allow you to earn the PRB.

PRB Payment Amounts 2024

The PRB is based on your CPP contributions from working after retirement. Each year you contribute to CPP while receiving your retirement pension, you earn an additional PRB, which is added to your CPP income.

How Much Can You Receive?

• The exact amount varies based on your contributions, but each year’s contributions generate a separate PRB.
• For 2024, the maximum amount you can receive per PRB depends on your annual earnings and contributions. For example, a worker earning $66,600 (the 2024 CPP contribution limit) will receive the highest PRB payment.
• Your PRB payment amount is recalculated every January based on your contributions from the previous year.

Example of PRB Payment:

If you contribute the maximum amount while working and receiving CPP at age 65, you could see an additional PRB payment of up to $30–$40 per month per year of contribution. This can continue to grow for each year you work and contribute to the CPP.

When Are PRB Payments Made?

PRB payments are made monthly, alongside your regular CPP payments. The payments begin the year after you’ve made contributions, and they continue for life, regardless of whether you stop working.

For example:

• If you contributed to CPP in 2023 while receiving CPP retirement benefits, your PRB payments would begin in 2024.
• You do not need to apply to receive the PRB if you’re under 65 and contributing. However, if you’re 65 to 70 and want to contribute to CPP, you must opt in through your employer or Service Canada.

How to Apply for the PRB

If you are under 65, you don’t need to apply for the PRB, as contributions are automatically deducted. If you’re between 65 and 70 and wish to contribute, follow these steps:

1. Notify Your Employer: Inform your employer if you wish to continue making CPP contributions after 65. They will need to adjust payroll accordingly.
2. Apply Through Service Canada: If you’re self-employed or want to opt into contributions, you can apply through the My Service Canada Account or by contacting Service Canada.

Opting Out of CPP Contributions

Once you turn 65, you can choose to stop contributing to the CPP if you are still working. To do this:

• Complete the “Election to Stop Contributing to the Canada Pension Plan” form (CPT30).
• Submit the form to your employer and send a copy to the CRA.

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Benefits of the PRB

The PRB offers several advantages to retirees who continue working, including:

• Increased Retirement Income: The PRB adds to your monthly CPP payments, ensuring additional income for life.
• Flexibility: Whether you work full-time or part-time, your contributions help boost your PRB.
• Automatic Payments: The PRB is automatically added to your CPP, simplifying the process.

The Canada Post-Retirement Benefit (PRB) is an excellent way for retirees to increase their monthly income while continuing to work. With automatic contributions for those under 65 and the option to contribute for those aged 65 to 70, the PRB provides financial flexibility and lifelong payments. Understanding the eligibility, payment amounts, and application process ensures that you can maximize your retirement benefits in 2024.