# Starting your CPP in Dec 2021 versus Jan 2022



## Dogger1953 (Dec 14, 2012)

Ignoring the enhanced portion of the CPP, if you start your CPP in 2021 in will increase b y 2.7% effective January 2022 as a result of the CPI increase from 2021 to 2022. On the other hand, if you start your CPP in 2022 it will be based on the 5-year-average YMPE ending with 2022, which is an increase of approx 3.3% over the 5-year-average YMPE ending in 2021.

Using maximum base CPP amounts as an example, a maximum CPP of $1,203.75 in 2021 will increase to $1,236.25 in 2022 with the 2.7% CPI increase. If you defer your CPP until 2022 however, the maximum base CPP will be $1,243.75. Not a huge difference, but when combined with the increased age-adjustment factor for being at least one month older in 2022, the approximate "breakeven period" for delaying your CPP start date to January 2022 from December 2021 is approx 6 years.

I just thought you might want to know.


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## peterk (May 16, 2010)

Why is the 5 year average YMPE increase 3.3% from 2021 to 2022? None of the CRA indexation increases have been that much in the last five years, around 1-2% each year, 2021 being a big one at 2.4%.

Is it not just a rolling average? so drop 2016 and include 2021?


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## Dogger1953 (Dec 14, 2012)

peterk said:


> Why is the 5 year average YMPE increase 3.3% from 2021 to 2022? None of the CRA indexation increases have been that much in the last five years, around 1-2% each year, 2021 being a big one at 2.4%.
> 
> Is it not just a rolling average? so drop 2016 and include 2021?


You're correct that it's a rolling average, but it's drop 2017 and add 2022. Most indexing is against prices, but the YMPE indexing is based on wages as measured by Canada's average industrial wage.


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