retirement

retirement

Canada’s social insurance system is based on a three-tier system. Source : Government of Canada

First level (public) : Old Age Security (OAS) program

  • Funded by general tax revenues
  • Most people are eligible for an OAS pension if they have lived in Canada for more than 10 years after the age of 18.
  • You must be a Canadian citizen or legal resident to receive your OAS pension.

Guaranteed Income Supplement (GIS)

Designed to help low-income OAS pensioners. To receive the GIS, you must :

  • live in Canada
  • receive an OAS pension
  • have an income below a certain amount

Second tier (public) : Canada Pension Plan (CPP) and Quebec Pension Plan (QPP)

  • Financed by employer/employee contributions and investment returns
  • Provides income replacement for people who have worked or were self-employed in Canada
  • The Province of Quebec has its own Quebec Pension Plan

Third tier (private) : Employer-sponsored pension plans and personal retirement savings

For example :

  • Registered retirement savings plan, tax-free savings account, etc.
  • Financed by employer/employee contributions and personal savings

Further information: