Canada pension plan - how it works?
 

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.

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.

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...

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.

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