Canada pension plan - how it works? [Archive]

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mika

11-01-2006, 09:33 AM

Hi all,

I was thinking about the Canada pension plan the other day. I am a contractor and I have to pay my CPP but how does this work? How much is the pension here in Canada and when can you retire? I am too far from retiring but I want to know more.

Tsveta

11-02-2006, 09:26 AM

Hi Mika,
It is not that simple to explain. It depends on how many years you have contributed and what was your income during that period.
To qualify for a CPP retirement pension you have to be at least 65 years old.
The maximum pension for 2005 was $828. :rolleyes: I don't know if they've made any adjustment for 2006.

lookingforjob

11-03-2006, 09:46 AM

You can hardly live on $828 per month now, can you? I see CPP as just another tax imposed on already heavily taxed Canadians. The best thing you can do is to contact a qualified accountant, and he/she will explain how things work...

contractor

11-06-2006, 09:02 AM

I wouldn't say it works. Some people work all their life and their pension is less than the amount some people get from welfare.... Think about it, can you live with $800 a month? And this is the maximum!!!
You have to do your own savings and RRSP.

mika

11-06-2006, 09:51 AM

I now that this pension is not enough but I was curious to know more...Thanks for the replies! :rolleyes:

lana

11-06-2006, 05:37 PM

I think contractor and lookingforjob are right. You have to take care of yourself! I personally think when the babyboomers start to retire this CPP fund will collapse...

Tsveta

11-07-2006, 08:29 AM

I think contractor and lookingforjob are right. You have to take care of yourself! I personally think when the babyboomers start to retire this CPP fund will collapse...

There are some speculations about that. The baby boomers will start to retire around 2010. They were born between 1946-1964 - but think about the job prospects - employers will compete to fill the positions they vacate.

amal

11-07-2006, 09:05 AM

What about those companies who have a retirement plan and this is part of the benefits they offer, like Bell for instance?

Tsveta

11-13-2006, 08:57 AM

What about those companies who have a retirement plan and this is part of the benefits they offer, like Bell for instance?

You can receive CPP and a pension from this private retirement fund as well as money from your RRSP.

RSTech

11-13-2006, 10:48 AM

You have to take care of yourself!
I agree, I plan my retirement as though I will be getting nothing from other sources. If I do end up with CPP and/or company pension then it will be a bonus. I know a number of people where their company has gone bankrupt and they lost their job and pension. There are now lawyers and the government involved but good luck to them in trying to get a large sum of money out of a bankrupt company.