Canada runs excellent retirement pension plans for its people even as the financial and retirement plans are very useful for the retired senior citizens of the nation. One may gain from it provided he fulfills some eligibility requirements set by the Canadian administration.
The retirement age in the Maple Leaf Country is different from one person to another. It all boils down to the job they could be involved with, and also the health state they could be in. Ottawa has three schemes that supervise monetary help and pension plans for the retired senior citizens.
These retirement pension plans in Canada are the most extensive pension plans in the nation, if we do not include Quebec, as this Canadian province runs its own pension plan, and it is known as the Quebec Pension plan (QPP). These two plans work together to offer limited income replacement in the eventuality of a death, incapacity, and retirement.
Though the financial assistance of the pension plan can begin from the age of 60 the payments are not high. The right age for receiving a full pension is 65, post this age the pension swells.
And if we talk about the eligibility, it depends on a person’s contribution to the pension plan. The benefits are computed on the basis of the time and the amount an individual may have contributed to the CPP. The pension doesn’t begin to arrive on its own; you have to present a petition so that it starts. If possible, submit a petition 1 year prior to you want your payments to begin.
Old Age Security (OAS)
It is, perhaps, the biggest financial assistance scheme that Ottawa runs. Supported by the proceeds of the government, people do not make a contribution to it directly. If a person fulfills the different residential & legal requirements of the nation, senior citizens, who are 65 and above, can look forward to getting payment on a monthly basis. It is applicable to the manpower which has worked overseas for the Canadian recruiters/firms.
The benefits are computed on the basis of some conditions. One key condition is the time-period of the candidate for which he has resided in the nation, post the age of 18, and on the ground of this, aspirants make the cut for either a limited or complete pension. Prior to the start of the OAS pension, it is required that the recipient has lived in the nation nonstop for a decade.
It is possible to defer the pension benefits for an utmost period of 5 years with an increase of a maximum of 36% in the pension. Your employment status does not affect your Old Age Security pension.
Guaranteed Income Supplement (GIS)
It is mandatory that the recipient is qualified for and getting the Old Age Security Pension. The benefits of the GIS are offered to the people with not-too-high income even no tax is slapped on the financial help given.
While there’s a maximum annual income threshold it is required that the candidate’s yearly income is lower than it. Apart from the OAS pension, it’s the only additional eligibility requirement.