How Canada's Retirement Income Works
Retirement income in Canada typically comes from government pensions and personal savings. The main public pensions are the Canada Pension Plan (CPP) and Old Age Security (OAS), managed by Service Canada. There are also additional benefits like the Guaranteed Income Supplement (GIS) for low-income seniors.
Canada Pension Plan (CPP)
CPP is a contributory pension based on your work history. You can decide when and how to apply. If you are under 70 and working while receiving CPP, you can continue contributing to increase your pension (called Post-Retirement Benefit, PRB).
Other CPP benefits include:
- Disability benefits for those unable to work due to severe and prolonged disability.
- Survivor's pension for the legal spouse or common-law partner of a deceased contributor.
- Death benefit – a one-time payment for a deceased contributor's estate.
- Children's benefit for dependent children of disabled or deceased contributors.
Old Age Security (OAS)
OAS is a pension for people aged 65 and older, available even if you have never worked or are still working. It is not based on employment history, but may be affected by residence and income.
Guaranteed Income Supplement (GIS)
GIS is an additional benefit for low-income OAS recipients. To receive or continue receiving GIS, you must file your taxes. The official page warns: if you haven't filed your 2024 taxes with the CRA, your GIS payments may stop or be reduced. File your taxes as soon as possible, or report your income directly to Service Canada to renew or confirm eligibility.
Other Benefits
- The Allowance – for low-income individuals aged 60-64 whose spouse or common-law partner receives GIS.
- The Allowance for the Survivor – for low-income widowed individuals aged 60-64 who are not yet eligible for OAS.
How to Apply and Manage
- Use your My Service Canada Account (MSCA) to manage applications and payments.
- Sign up for Direct Deposit to avoid payment delays.
- Contact Service Canada for questions about amounts, dates, or applications.
0 found this useful
Send this page