Jenny
As the cost of living continues to surge, financial planning has become a top priority for Canadians. One pressing question many are asking is: how much do you need to earn to get the maximum Canada Pension Plan (CPP) payout?
With inflation squeezing budgets and long-term goals becoming harder to achieve, understanding your CPP entitlements and how to supplement them is more crucial than ever.
Why CPP Matters More Than Ever
According to Scotiabank’s Q2 Worry Poll, 30% of Canadians are uncertain about how to make their money work effectively.
Younger Canadians, in particular, are feeling the pinch—48% of Gen Z and 49% of Millennials admit they’re having trouble distinguishing between needs and wants.
Many are even sacrificing essentials to maintain their lifestyle. In this economic climate, maximizing your CPP payout could play a key role in your future financial security.
Earning the Maximum CPP: What It Takes
To receive the maximum CPP payout in 2025, you must contribute the maximum amount to CPP for at least 39 years out of the 47 years between ages 18 and 65. This means contributing based on the Year’s Maximum Pensionable Earnings (YMPE), which is set at $71,300 for 2025.
- Any income earned above $71,300 won’t increase your CPP payout.
- You must contribute the full amount each eligible year, not just earn a high salary.
- Partial or inconsistent contributions reduce your potential benefits.
What Is the Maximum CPP Payout in 2025?
If you begin collecting CPP at age 65 in 2025 and have met the contribution requirements, you can receive up to:
- $1,433.00 per month
- $17,196 per year
However, most retirees fall short. The average monthly CPP payment as of April 2025 is $844.53, which shows just how difficult it is to reach the maximum. So how can Canadians bridge the gap?
Boosting Retirement Income With Investments
Brookfield (TSX:BN): A Popular Choice
Many investors are turning to dividend-paying stocks to supplement their retirement income. A standout example is Brookfield Corporation, which recently posted impressive Q1 2025 earnings:
- US$1.5 billion in distributable earnings, up 27% year over year
- US$0.98 per share earnings
- US$25 billion in new fund inflows
- US$165 billion in deployable capital
Brookfield also repurchased US$850 million in shares, signaling strong confidence in its business model and future growth.
Why Brookfield Could Be a Strategic Asset
While the current dividend yield is a modest 0.58% (just $0.49 annually), the company’s strength lies in reinvestment and long-term growth.
Brookfield aims for 15%+ annualized returns, making it a compelling addition to any retirement portfolio—especially if you’re seeking to complement your CPP income with a more aggressive growth strategy.
With diversified holdings in renewable energy, infrastructure, private equity, and real estate, Brookfield offers global exposure and dependable cash flow, which are valuable in any investment strategy.
Important Considerations
It’s important to note that:
- Brookfield is not a guaranteed income source like CPP.
- The low current yield might not appeal to income-focused investors.
- But the long-term growth potential makes it a strong candidate for building wealth over time.
For many Canadians, reaching the $71,300 salary benchmark consistently over 39 years is unrealistic. That’s why a diversified retirement plan—including CPP, RRSPs, TFSAs, and solid investments like Brookfield—can provide a more comprehensive financial cushion.
While maximizing CPP is a smart goal, it shouldn’t be your only one. Given the current economic landscape, most Canadians will need additional income sources to maintain their lifestyle during retirement. Combining government benefits with private investments can help bridge the gap.
Whether you’re starting your career or approaching retirement, creating a flexible income plan that includes both guaranteed income like CPP and growth assets like Brookfield can offer greater peace of mind. In today’s volatile world, smart planning—not just chasing the max CPP—is the real key to financial security.
FAQs
What is the YMPE for CPP contributions in 2025?
The Year’s Maximum Pensionable Earnings (YMPE) for 2025 is $71,300. Contributions to CPP are only required up to this income cap.
What is the average CPP payment compared to the maximum?
As of April 2025, the average CPP retirement pension is $844.53 per month, while the maximum is $1,433.00 per month.
Can Brookfield dividends replace CPP?
No. Brookfield is an investment, not a guaranteed income stream. It can supplement CPP but shouldn’t replace it entirely.