Retirement Income Benefits for Canadians
In Canada there are two main retirement income benefits that are spearheaded by the government: CPP and OAS. And combined, they can actually make up a decent amount of income.
CPP stands for Canada Pension Plan and it’s funded by both employees and employers and is actually, at this point in time, a really well-funded and well-managed pension plan. The amount you will receive from CPP totally depends on how much you’ve put in over the years you were working.
OAS stands for Old Age Security and this plan is funded purely by current tax dollars and has nothing to do with how much you put into it or much you work. The amount you get for OAS, is based entirely on how long you’ve lived in Canada. Simple as that.
Obviously, there are more details to discuss and I’ll cover those another time, but for now the key point to note is that most Canadians can expect to receive at least a portion of each of these benefits in retirement.
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