If you are thinking about retirement in Canada, one important thing to consider is how you will support yourself financially. Pension plans are a common way to save for retirement in Canada and can provide a stable source of income during your golden years. In Canada, there are two main types of pension plans: the Canada Pension Plan (CPP) and the Old Age Security (OAS) pension.
The CPP is a government-mandated pension plan that provides a monthly payout to retired Canadians. The amount you receive from CPP is based on your contributions throughout your working years and the age at which you begin receiving benefits. OAS is also a government-funded pension program that provides a monthly payment to Canadians over the age of 65. Unlike CPP, OAS is available to all Canadian citizens and permanent residents, regardless of their work history.
Pension plans can be a crucial part of your retirement income strategy, so it’s important to understand how they work and what options are available to you. It’s recommended to begin saving for retirement as early as possible, as the longer your contributions have time to grow, the more income you will have in retirement. Consulting a financial advisor can also help you make informed decisions about your pension plan and ensure that you have a comfortable and secure retirement in Canada.