Pension Maximization
Canada Pension Plans
Every Canadian over the age of 18 that earns a wage has contributed money toward the Canada Pension Plan. This is an earnings related social insurance program designed to help people and their families financially after they retire, become disabled or die. It ensures that all contributors are protected.
Pension Credits
How much money you'll receive from the Canada Pension Plan depends on the amount of pension credits you build up. These credits are based largely on the total amount of money you contribute. The higher your annual salary and the more years you work between age 18 and retirement, the larger your pension will be.
Couples
In the event of divorce, the pension credits earned as a couple can be evenly split, even if one spouse or common-law partner did not pay into the Canada Pension Plan. A retired couple can also share pension credits for tax purposes, if one of their pensions is significantly higher than the other.
Receiving Payment
You will begin receiving pension payments when you retire, or any time you become disabled and are no longer able to work. If you choose to retire in another country, you are still able to receive your pension, paid in Canadian dollars, anywhere in the world.
Other Benefits
If you're over 65 you may qualify for the Old Age Security Act. If you're between 60 and 65 and married or widowed you may be eligible for an Allowance. If you're living on a low-income, you may also be able to receive a Guaranteed Income Supplement. Information on these and other federal and provincial programs is available through Human Resources Development Canada.