Government Pension
The Canada Pension Plan (CPP) is a retirement pension plan in Canada. Anyone who is employed contributes a percentage of their salary to the plan.
After retirement, the annual pension amount you receive is based on your total contributions each year before retirement as well as the number of years you contributed.
According to statistics, the average CPP benefit received by retirees in 2012 was $529 per month.
The Canada Pension Plan (CPP), commonly known as Canada’s public plan retirement pension , is based on contributions made by people who are employed, with a percentage of their salary deducted and paid into the plan.
In contrast, the Old Age Security (OAS) pension does not require employment or contributions. However, to qualify, you must have lived in Canada for at least 10 years after the age of 18 and before age 65. To receive the full benefit, you need 40 years of residence in Canada; otherwise, the amount is reduced proportionally based on your years of residence.
In 2012, the standard OAS benefit was approximately $545 per person per month. For example, if you are 65 years old and have lived in Canada for 20 years, you would be eligible for about 50% of the full amount, or roughly $273 per month.
Employer Pension Plan
In Canada, many public institutions and large corporations offer retirement pension plans for their employees. If you are fortunate enough to work for such an employer, you may be entitled to receive a lifetime pension under the plan.
Establish Your Own Retirement Account
For many immigrants who arrive in Canada in mid-life, stay for only a relatively short period, and have not worked extensively, the public pension benefits described above are clearly far from sufficient to support a comfortable retirement.
As a result, building your own retirement savings plan becomes an important issue that must be addressed. There is no need to worry, we have solutions to help you plan for a more secure financial future.
