Retraite Québec announces a 6.5% pension increase in 2023

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Retraite Québec announces a 6.5% increase in pensions in 2023

The 6.5% increase in pensions in 2023 is higher than those of the past five years, which ranged between 1.0% and 2.7%.

< p class="e-p">The approximately 2.2 million beneficiaries of the Quebec Pension Plan (QPP) will see their pensions increase by 6.5% in 2023, Retraite Quebec announced on Friday.

The pensions of the QPPs are indexed each January to take into account changes in Statistics Canada's Consumer Price Index (CPI), thus protecting its beneficiaries from inflation. The QPP indexation calculation takes into account the annual variation in the average Canadian CPI for the period from November to October.

The household current expenditure basket studied by Statistics Canada to establish its CPI looks in particular at the prices of the food, housing, clothing, transportation and health care sectors, for compare to a reference year.

According to this index, a purchase of $100 in goods and services from the reference basket of 2002 was worth $153.80 in October 2022, which represented growth of 53.8% over 20 years.

As a result of the high inflation that has plagued the country for several months in most consumer sectors, the 2023 increase imposed on pensions is particularly high compared to those of the last five years, which ranged between 1.0% and 2.7%.

Those affected by the increase in pensions are the beneficiaries of pensions for retirement, surviving spouse, disability, disabled contributor's child and orphan. These pensions are available to people who have contributed sufficiently to the QPP or to their relatives.

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