New Financial Planning Data for 2014

A new year means new limits and data.  Here’s a list of new financial planning data for 2014 (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 2014 is 18% of the previous year’s earned income or $24,270 whichever is lower less the Pension Adjustment (PA).
  • The limit for Deferred Profit Sharing Plans is $12,465
  • The limit for Defined Contribution Pensions is $24,930

Remember that contributions made in January and February of 2014 can be used as a tax deduction for the 2013 tax year.

Year
Defined Contribution Pension  limit
RRSP limit
DPSP limit
1990$11,500(Old limits)$5,750
1991$12,500$11,500$6,250
1992$12,500$12,500$6,250
1993$13,500$12,500$6,750
1994$14,500$13,500$7,250
1995$15,500$14,500$7,750
1996$13,500$13,500$6,750
1997$13,500$13,500$6,750
1998$13,500$13,500$6,750
1999$13,500$13,500$6,750
2000$13,500$13,500$6,750
2001$13,500$13,500$6,750
2002$13,500$13,500$6,750
2003$15,500$14,500$7,750
2004$16,500$15,500$8,250
2005$18,000$16,500$9,000
2006$19,000$18,000$9,500
2007$20,000$19,000$10,000
2008$21,000$20,000$10,500
2009$22,000$21,000$11,000
2010$22,450$22,000$11,225
2011$22,970$22,450$11,485
2012$23,820$22,970$11,910
2013$24,270$23,820$12,135
2014$24,930$24,270$12,465

Financial Planning CalculationMore articles on RRSPs

TFSA limits

  • The TFSA limit for 2014 is $5500.
  • The cumulative limit since 2009 is $31,000
Year
TFSA Limit
2009$5000
2010$5000
2011$5000
2012$5000
2013$5500
2014$5500
Cumulative limit$31,000

More articles on the TFSA

Canada Pension Plan (CPP) data

Lots of changes are happening with CPP but here’s some of the most important planning data.

  • Yearly Maximum Pensionable Earning (YMPE) – $52,500
  • Maximum CPP Retirement Benefit – $1038.33 per month
  • Maximum CPP Disability benefit –  $1236.35 per month
  • Maximum CPP Survivors Benefit
    • Under age 65 – $567.91
    • Over age 65 – $623.00

2014 Reduction of CPP for early benefit – 0.56% for every month prior to age 65.  At age 60, the reduction for 2014 is 33.6%.  This reduction is being phased in over 5 years.

Year
Max CPP Retirement (monthly)
Max CPP Disability (monthly)
YMPE
2014$1038.33$1236.35$52,500
2013$1012.50$1212.90$51,100
2012$986.67$1185.50$50,100
2011$960,00$1153.37$48,300
2010$934.17$1126.67$47,200
2009$908.75$1105.99$46,300
2008$884.50$1077.52$44,900
2007$863.75$1053.77$43,700

For more information on CPP

Old Age Security (OAS)

  • Maximum OAS – $551.54 per month
  • The OAS Clawback (recovery) starts at $71,592 of income.  At $115,716 of income OAS will be fully clawed back.
Year
OAS Max (Monthly)
OAS Max (Annual)
OAS Clawback starting threshold
2014$551.54$6618.48$71,592
2013$546.07$6552.84$70,954
2012$540.12$6481.44$69,562
2011$524.23$6290.76$67,668
2010$521.62$6259.44$66,733
2009$516.96$6203.52$66,335

For more information on OAS Clawback:

New Federal Tax Brackets

For 2014, the tax rates have not changes but the tax brackets have increased according to indexation. The new Federal budget this year could change these figures.

  • $0 to $11,138 – Personal Exemption
  • $11,139 to $43,953 – 15% marginal tax rate
  • $43,954 to $87,907 – 22% marginal tax rate
  • $87,908 to $136,270 – 26% marginal tax rate
  • Over $136,271 – 29% marginal tax rate

Remember these rates do not include provincial tax.

For new provincial rates, visit the CRA site

Provincial tax rates are also subject to change when the provincial budgets are released later in 2014.

For more information on tax rates

 

Written by Jim Yih

Jim Yih is a Fee Only Advisor, Best Selling Author, Financial Expert and a syndicated columnist. He is a sought after financial speaker on wealth, retirement and personal finance. He currently specializes in helping employers implement Group RRSP and Pension plans along with his Financial Education in the Workplace program. For more information you can visit www.retirehappy.ca. You can also follow him on TWITTER @jimyih.

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