Minister Eric Girard believes that the indexation of this Retraite Québec pension will “help more than 2.2 million beneficiaries maintain their purchasing power.”
The increase affects direct beneficiaries of the old-age pension, the survivor’s pension, the disability pension, the child/disability pension and the orphan’s pension.
This increase in retirement benefits is calculated annually based on Statistics Canada’s Consumer Price Index (CPI) for the November to October period compared to the average for the previous 12 months.
Indexation of QPP pensions over time
- 2019: 2.3%
- 2020: 1.9%
- 2021: 1.0%
- 2022: 2.7%
- 2023: 6.5%
- 2024: 4.4%
Source: Retraite Quebec
This announcement comes at a time when nearly one in three seniors find themselves in a precarious financial situation as prices continue to rise. More and more of them are going to food banks to get by.
According to a survey by Sunlife, 30% of people over 60 are affected by the rising cost of living.
SEE ALSO | Seniors, direct victims of the rising cost of living
How do you calculate your QPP retirement pension?
The amount of QPP retirement pension that beneficiaries receive depends on their earned income and the age at which they become eligible for the pension. Higher income means higher pension, and beneficiaries who claim it at age 65 will receive 100% of their pension. You therefore receive 25% of the average professional income, explains Retraite Québec on its website. If you apply for your pension before the age of 65, you will receive a lower pension for life.
Here is the percentage of retirement benefit that claimants are entitled to depending on the age at which they apply:
- 60 years old: 64% to 70%
- 61 years old: 71.2% to 76%
- 62 years old: 78.4% to 82%
- 63 years old: 85.6% to 88%
- 64 years old: 92.8% to 94%
- 65 years: 100% (maximum pension)
- 66 years old: 108.4%
- 67 years old: 116.8%
- 68 years old: 125.2%
- 69 years old: 133.6%
Source: Retraite Quebec
With information from Véronique Dubé and the collaboration of Émile Bérubé-Lupien for Noovo Info.