The CPP/EI Max Out Raise

Recently while looking at my pay stub. I realized I’m closing in on maxing out my Canada Pension Plan (CPP) and Employment Insurance (EI) contributions in the next few months. So the question becomes what I’m going to do with my increased take home pay for the last few months of the year?

I thought about saving it towards my early retirement plan, but instead I think I’m going to bank up the money for something else. I haven’t decided what exactly, but it will be something for my family or myself. Perhaps some extra money for a vacation or a renovation to the home.

So why am I planning on spending this little pool of extra cash? Well first off I didn’t plan for it anywhere so it is just an unexpected bonus. I was already a good little saver early this summer when I got a small bonus from work and put it directly on my RRSP account. So I think it is time to get some balance and take this little ‘raise’ and spend it.

After all we can’t be good little savers all the time. It drives you a little crazy after a while if all you do is save. So don’t ever feel bad about the occasional complete selfish moments in your life. We all have them at some point.

6 thoughts on “The CPP/EI Max Out Raise”

  1. Does that mean I can buy the apple laptop I’ve been dreaming of but have little practical use for? Damn you Steve Jobs!

    Seriously though how much do you and everyone else think is a balanced amount of “play money”… 5% of after tax salary?

  2. Jordan,

    Sure buy a laptop if you think it will bring you a lot of happiness. I know I really didn’t need a laptop, but I still got one recently.

    As to play money I don’t have a set % I use. I rather do it more by feel and need. If I need something I tend to get it rather quickly, but other projects and wants tend to be pushed off for a month or two.


  3. Be careful when you disclose such information, we can calculate your salary based on it 🙂

    Take this money and make someone (your wife, kids, any other options) happy.

  4. Agivant,

    Actually if you wanted to there are numberous ways to calculate my salary from the information on this blog. I try to be as indirect as possible and keep it vauge, but I know it is still possible.


  5. I just hit my max outs today! As much as I’d love to start spending… I think I’ll end up putting the excess towards the mortgage 🙁

  6. I did some calculations and see in 2009 we will all have less extra to spend than in 2008. The maximum annual pensionable earnings has been raised yet again. This only makes a difference when you earn over $50K though.

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