A new year means new limits and data. Here’s a list of new financial planning data for 2020 (In case you want to compare this to past years, I’ve included old data as well).
Pension and RRSP contribution limits
- The new limit for RRSPs for 2020 is 18% of the previous year’s earned income or $27,230 whichever is lower less the Pension Adjustment (PA).
- The limit for Deferred Profit Sharing Plans is $13,915
- The limit for Defined Contribution Pensions is $27,830
Remember that contributions made in January and February of 2020 can be used as a tax deduction for the 2019 tax year.
| Tax Year | Income from | RRSP Maximum Limit |
| 2020 | 2019 | $27,230 |
| 2019 | 2018 | $26,500 |
| 2018 | 2017 | $26,230 |
| 2017 | 2016 | $26,010 |
| 2016 | 2015 | $25,370 |
| 2015 | 2014 | $24,930 |
| 2014 | 2013 | $24,270 |
| 2013 | 2012 | $23,820 |
| 2012 | 2011 | $22,970 |
| 2011 | 2010 | $22,450 |
| 2010 | 2009 | $22,000 |
| 2009 | 2008 | $21,000 |
TFSA limits
- The annual TFSA limit for 2020 is the same at $6,000.
- The cumulative limit since 2009 is $69,500 (assuming you were over the age of 18 in 2009)
TFSA Limits for past years
| Year | Annual Limit | Cumulative Limit |
| 2020 | $6000 | $69,500 |
| 2019 | $6,000 | $63,500 |
| 2018 | $5,500 | $57,500 |
| 2017 | $5,500 | $52,000 |
| 2016 | $5,500 | $46,500 |
| 2015 | $10,000 | $41,000 |
| 2014 | $5,500 | $31,000 |
| 2013 | $5,500 | $25,500 |
| 2012 | $5,000 | $20,000 |
| 2011 | $5,000 | $15,000 |
| 2010 | $5,000 | $10,000 |
| 2009 | $5,000 | $5,000 |
Canada Pension Plan (CPP)
Here’s some of the key planning data around CPP.
- Contribution amounts for 2020
- Employee contribution = 5.25%
- Employer contribution = 5.25%
- Self employment = 10.1%
- Maximum contributory earnings = $55,200
- CPP Benefits
- Yearly Maximum Pensionable Earning (YMPE) – $58,700
- Maximum CPP Retirement Benefit – $1175.83 per month
- Maximum CPP Disability benefit – $1387.66 per month
- Maximum CPP Survivors Benefit
- Under age 65 – $638.28
- Over age 65 – $705.50
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:
| Year | Monthly | Annual |
| 2020 | $1175.83 | $14,109.96 |
| 2019 | $1154.58 | $13,854.96 |
| 2018 | $1134.17 | $13,610.04 |
| 2017 | $1114.17 | $13,370.04 |
| 2016 | $1092.50 | $13,110.00 |
| 2015 | $1065.00 | $12,780.00 |
| 2014 | $1038.33 | $12,459.96 |
| 2013 | $1012.50 | $12,150.00 |
| 2012 | $986.67 | $11,840.04 |
| 2011 | $960.00 | $11,520.00 |
| 2010 | $934.17 | $11,210.04 |
| 2009 | $908.75 | $10,905.00 |
Old Age Security (OAS)
- Maximum OAS – $613.53 per month
- The OAS Clawback (recovery) starts at $79,054 of income. At $128,137 of income OAS will be fully clawed back.
OAS rates for past years:
| Year | Maximum Monthly Benefit | Maximum Annual Benefit |
| 2020 | $613.53 | $7,362.36 |
| 2019 | $601.45 | $7,217.40 |
| 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 |
New federal tax brackets
From 2019, the tax rates have changed.
| Lower Income limit | Upper Income limit | Marginal Rate Rate |
| $0.00 | $12,298.00 | 0.00% |
| $12,298.00 | $48,535.00 | 15.00% |
| $48,535.00 | $97,069.00 | 20.50% |
| $97,069.00 | $150,473.00 | 26.00% |
| $150,473.00 | $214,368.00 | 29.00% |
| $214,368.00 | 33.00% |
@ Henley Financial and Wealth Management Inc. 