Wages went up 2.3% for the 12 months ending in September. That's both unusual and unfortunate. Falling purchasing power of working households is a problem; under normal circumstances inflation would be circa 2% and a little less than the wage growth. So, CPP is doing better than salaries.

I remember some poor fool about twenty years back complaining to all the media about a very small COLA. He made a big deal out of sending the amount of one payment COLA to the BC government - which I think was the Gordon Campbell "Liberals" (who were actually the Social Credit gang who defaulted on their debts and then took over the small Liberal Party of BC.)

The idiot didn't understand it meant he hadn't lost money during the previous year.

https://www.theglobeandmail.co.....to-expect/

Oh hi, there. The air is getting colder, the days are getting shorter, and the end of the year is creeping up faster than I’d like to admit. But an upside to the calendar racing toward December is that we’re getting a clearer picture of how much government benefits, including Canada Pension Plan payments, could increase next year. And for retirees, there may be some good news. Let’s get into the numbers.
On the up and up

I would never claim to be an oracle, but I can tell you with a high degree of confidence how much CPP payments will rise in 2027.

First, a quick refresher for the uninitiated. CPP payments are adjusted every January to account for inflation. The government looks at how much prices have changed, using Statistics Canada’s Consumer Price Index, over the 12 months ending in October compared with the previous 12-month period. The idea is to help ensure retirees’ pension payments keep pace with the rising cost of living.

Jason Yee, principal financial analyst at Finepoint Solutions Inc. in Saskatoon, estimates that CPP payments will increase by – drum roll, please – 2.7 per cent in 2027 for Canadians already receiving benefits.

That’s a noticeable jump from the 2-per-cent increase in 2026 and slightly higher than the 2.6-per-cent bump in 2025.

I first spoke with Yee before September’s inflation numbers came out earlier this week. At the time, he was forecasting a 2.6-per-cent increase. But after Statistics Canada reported that annual inflation had climbed to 3.1 per cent in September, he nudged his estimate up to 2.7 per cent.

There’s still one more inflation data point to come before the official adjustment can be calculated, but Yee doesn’t expect the final number to change much.

That increase might feel like a nice perk, but it’s just a reflection of higher costs pensioners have already been shouldering for essentials such as groceries or gas.

When he worked as a financial planner, Yee said he told his clients not to think of the increase in CPP payments as a boost to their retirement income, since rising prices could eat up much of those gains.

“Whatever you gain here, you might lose there. It just sort of comes out in the wash,” he said.

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The prescribed inflation adjustment factor for the 2027 TFSA dollar limit and other limits and amounts is 2.6%:

167.525 / 163.275 - 1 = 0.0260297… ⇨ 0.026 ⇨ 2.6%

That exceeds the 1.0% needed to reach a $7,500 TFSA dollar limit.

Dean said
.
No one's questioning the calc ⬆️❗

It's whether it will Really happen ... it's a "Wait An' See".

See you in Jan. '27.

O & O,
Dean  

OK!

It's whether it will Really happen ... it's a "Wait An' See".

See you in Jan. '27.

O & O,

Dean

Dean said
.
Fingers Crossed ⬆️
Dean  

$7500 ($7372 rounded to nearest $500). It's a simple calc...

Dean

hwyc said
We didn't get $7,500 for 2026
... I think we will get $7,500 for 2027 ... watching for early bird offers  

With average inflation Oct 2025 to Sep 2026 at 2.60%, it will be $7500 ($7372 rounded to nearest $500) for 2027 ...

0.9% adjustment factor could be enough. Amounts are rounded to the nearest whole dollar by subsection 117.1 (3):

$7,185.00 * (1 + 0.009) = $7,249.665 ⇨ $7,250.00 raw amount

Rounding

117.1 (3) Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.