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Voluntary CPP contributions may be coming. What's available now?
OTTAWA – The Harper government will look at allowing people to stash more of their earnings into the Canada Pension Plan to boost retirement savings. Following is a quick look at various programs available to seniors.
The Canada Pension Plan: A monthly payment for those who have worked and made at least one valid contribution to the plan. Standard pensionable age is 65, but people may take a permanently reduced pension as early as age 60 or take a permanently increased pension after age 65.
READ: Why it pays to take CPP early »Old age security: A monthly payment available to most people 65 years of age and older who meet the Canadian legal status and residence requirements. Employment history is not a factor in eligibility.
READ: Getting the most from OAS »Guaranteed income supplement: Available to legal residents who get old age security cheques and whose annual income is below a certain amount.
READ: How the rich can qualify for a GIS »Monthly allowance: For those age 60 to 64 whose spouse or common-law partner gets an old age security cheque and is eligible for the guaranteed income supplement.
READ: Are you GIS eligible? »Registered retirement savings plan: Allows people to save for retirement with tax-deductible contributions. Income earned in the plan is usually exempt from tax as long as the funds remain in the plan. Taxes generally apply when assets are withdrawn.
READ: A guide to RRSPs »Pooled registered pension plan: Applies to people employed or self-employed in the Northwest Territories, Nunavut or Yukon, those who work in a federally regulated business or industry for an employer who chooses to participate in a pooled plan, or those who live in a province that has the required provincial standards legislation in place. Your contributions, your employers’ contributions and any lump-sum contributions, are all pooled together.
READ: Pension solution or illusion? »Tax-free savings account: Allows contributions of up to $5,500 a year (rising to $10,000 if existing budget legislation passes). Investment income is tax free.
READ: The biggest TFSAs in Canada »Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
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