Canada's retirement income system
Besides your personal savings and investments, do you know how much money you can expect to receive in retirement? To help you better plan for your retirement, it's important to understand the various parts of Canada's retirement income system.
The retirement income system in Canada has three levels.
First level - the Old Age Security Program
The Old Age Security Program is funded through general tax revenues. It provides a basic monthly pension to more than 95% of Canadian seniors.
Second level - the Canada Pension Plan
The Canada Pension Plan is funded through contributions by Canadian workers and their employers as well as the earnings on the investment of the Plan's funds. The Plan provides retirement pensions, disability benefits, survivor benefits and benefits for children.
Third level - private savings
Private savings include employer-sponsored pension plans, Registered Retirement Savings Plans (RRSPs) and other private savings.