What Is The Canada Pension Plan, And Does It Qualify Me For A Cash Loan?
The Canada Pension Plan (CPP) is a government subsidy that provides pensions and benefits to its contributors when they retire or become disabled. Almost everyone between the ages of 18 and 70 who works in Canada and earns a minimum of $3,500 per year contributes to CPP. Your contribution is based on your annual income, or your pensionable earnings. The minimum amount of pensionable earnings is frozen at $3,500 and the maximum amount is set each January based on the average wage in Canada. In 2015, the maximum is $53,600 and the CPP contribution rate is set at 4.95% of your income.
How Much Pension Income Will I Receive?
You receive full benefits from the Canadian pension plan at age 65. However, you can apply early at age 60 and take a reduction, or apply late at age 70 and take an increase. The exact amount you receive from the Canadian pension plan depends on how many years you've contributed and how much you put into the Canada Pension Plan.
In order to get the maximum CPP benefit, you have to contribute for at least 83% of the time that you're eligible to do so, which is 39 years (of the 47 years from age 18 to age 65). Your total contribution amount also affects your pension income. The more you contribute during each eligible year, the more you'll make during each year of your retirement.
However, when planning for retirement, don't assume you're going to receive the maximum payout each month; the average monthly payout is around $550.
Do I Qualify For A Cash Loan?
If you receive benefits from CPP, then you qualify for a Magical Credit cash loan! Check out our blog for tips on how to live on retirement subsidies.
Magical Credit is a Toronto-based private lender that specializes in providing cash loans to people who are receiving fixed government income, such as the Canadian pension plan benefits. If you need a loan during your retirement, fill out an application or call us at 1-844-521-2088 now!
Disclosures:
Magical Installment Loans: Installment loans are available to eligible residents of Ontario and range from $1,500 to $20,000. Repayment terms range from 18 to 78 payments, with flexible payment schedules available as weekly, bi-weekly, semi-monthly, or monthly.
Example: A $5,000 loan repaid over 18 monthly installments would require payments of $300.40 per month.
NOTE: Loan amount and payment amount are subject to change upon final loan approval. Interest rate for Personal Loans is calculated at 34.8%. The Repayment amount includes optional Loan Protection Plan coverage.
Magical Cash Loans - Ontario, British Columbia, Alberta, Northwest Territories, Nunavut, and Yukon Residents only: We offer Magical Cash Loans in the amount of $100-$1,500.00. The cost of borrowing is $14.00 per $100.00 for each $100.00 borrowed. On a $1,000.00 loan for 14 days, the cost of borrowing is $140.00. The total to pay back is $1,140.00, which is an annual percentage rate of 365.00%. ON License #4741412. BC License#85919 AB License#358423.
The Loan must be paid in full by the end of the term, with no extensions or exceptions, and no automatic renewals. Failure to pay your debt on time will impact your future credit with Magical Credit Inc. and other credit lenders. All delinquencies will be reported to the Credit Bureaus.
