Pension Indexation – Planning To Retire

Federal Pension Indexation

At the end of each year, the Treasury Board provides the Association with information on the pension indexing increase that is effective on January 1^st. The pension indexation rate effective January 1, 2023, is 6.3%.

CPP Indexing

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600 – up from $64,900 in 2022.

The employee and employer contribution rates for 2023 will be 5.95% – up from 5.70% in 2022, and the self-employed contribution rate will be 11.90% – up from 11.40% in 2022.

The indexing rate (COLA) for current pension recipients for January 2023 is 6.5%, based on the average CPI from November 2021 to October 2022.