Government Retirement Benefits

Canada Pension Plan (CPP/QPP)

Canadian employees and employers fund a mandatory pension plan this is designed to provide a retirement benefit equivalent to 25% of an employee's earnings below the average Canadian wage for those who work 40 years. The benefit is prorated for shorter periods and adjusted for those who retire before or after age 65.

Old Age Security (OAS)

Canada has a social security system for people who are age 65 and older and have resided in Canada for 40 years. The benefit is prorated for shorter periods with a minimum of 10 years required. The program is funded through general tax revenue as a way to redistribute income towards low-income pensioners. As such, benefits are reduced for those with high incomes (approximately 38% higher than the average wage).