Retirement is a major milestone in life that many Canadians look forward to. It’s a time to relax, travel, and spend time with loved ones. However, it’s important to have a solid retirement plan in place to ensure financial stability and comfortable living during the golden years. Luckily, Canada offers a variety of retirement benefits and programs that can help enhance one’s retirement experience.
The Canadian Pension Plan (CPP) and Old Age Security (OAS) are two of the most well-known retirement benefits in Canada. The CPP is a government-run program that provides a monthly income to those who have made contributions throughout their working lives. The amount received depends on how much one has contributed and for how long. OAS, on the other hand, is a basic income provided to all Canadians over the age of 65, regardless of their work history. These benefits are crucial in providing a steady stream of income during retirement.
Aside from these programs, Canada also offers tax credits, savings plans, and pension splitting options to help make retirement funds last longer. For example, the Registered Retirement Savings Plan (RRSP) allows individuals to contribute to their retirement savings and receive tax breaks, while the Tax-Free Savings Account (TFSA) provides tax-free growth on investments. Additionally, couples have the option to split their pension income to lower their overall taxes and save more money for retirement. All of
