How to Maximize Your CPP Benefits and Boost Your Retirement Income

Canadians receiving the average CPP benefit have ways to augment the pension and boost retirement income.

| More on:
Muscles Drawn On Black board

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canada Pension Plan Investment Board’s (CPPIB) task is to grow the Canada Pension Plan (CPP) and create retirement security for future retirees. However, the pension fund manager reminds everyone that the CPP is a foundation for retirement, not a retirement plan. Moreover, not everyone qualifies to receive the maximum benefit.

Only those who contributed for at least 39 years between 18 and 65 can expect to receive $1,364.60 monthly when they retire and start payments at 65. Otherwise, most users will make do with an average of $815 (July 2024 for new beneficiaries).

Give your retirement income a boost

Fortunately, Canadians have ways to boost retirement income. The Old Age Security (OAS) kicks in at age 65 but even with an additional $713.34 monthly, there’s still an income gap to fill. To receive more or an amount near the CPP maximum benefit, generate investment income.

Consider holding dividend stocks in retirement accounts like the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP). Gibson Energy (TSX:GEI) and Atrium Mortgage Investment Corp. (TSX:AI) are eligible investments in either investment account.

Besides the high dividend offers, both are steady performers in 2024. Given the average yield of 7.4%, a $25,000 investment in each will generate $3,695 in passive yearly income. The $50,000 capital transforms into an additional $307.92 monthly for your CPP and OAS benefits.

Highly contracted infrastructure business

Gibson Energy operates in the Oil & Gas Midstream industry. The $3.9 billion liquids infrastructure company boasts a storage capacity of 25.2 million barrels and has over 500 kilometres of crude pipelines across North America, not to mention high-quality terminal assets.

Created with Highcharts 11.4.3Gibson Energy PriceZoom1M3M6MYTD1Y5Y10YALL9 Apr 20204 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024202520251015202530www.fool.ca

The competitive advantage is the stable, highly contracted infrastructure business. According to management, Gibson’s existing projects assure infrastructure growth. In Q2 2024, revenue and net income increased 23.7% and 17.9% to $3.2 billion and $63.3 million compared to Q2 2023.

Notably, in the three months ending June 30, 2024, distributable cash flow rose 23% year-over-year to $101.5 million. As of this writing, GEI trades at $23.99 per share (+25.8% year-to-date) and pays a hefty 6.8% dividend (quarterly payout). The uninterrupted quarterly payouts since 2014 lend confidence to invest in the mid-cap stock.

Defensive lending

Atrium, a $527.7 million mortgage investment corporation (MIC), extends financing or lends to commercial real estate and development communities in Ontario and major urban centres in Ontario and Western Canada. Around 96.8% of the total portfolio are first mortgages and 89.5% have a loan-to-value of less than 75%.  

Created with Highcharts 11.4.3Atrium Mortgage Investment Corporation PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Suppose you invest today at $11.30 per share (+14.1% year-to-date). You can partake in the over-the-top 8% dividend. AI’s dividend track record dates back to 2013. Furthermore, it has paid special dividends every year on top of the regular monthly dividends.        

According to management, the focus remains on navigating challenging real estate market conditions. Atrium’s mortgage portfolio at the end of Q2 2024 rose to a record $908 million despite slower market activity. Its CEO, Rob Goodall, said the MIC will continue to lend defensively in preferred sectors.   

Comfortable retirement

Canadians can live comfortably in retirement by utilizing retirement accounts like the TFSA and RRSP. Passive income from both can augment the CPP and OAS benefits.

Should you invest $1,000 in Atrium Mortgage Investment Corporation right now?

Before you buy stock in Atrium Mortgage Investment Corporation, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Atrium Mortgage Investment Corporation wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Gibson Energy. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »