Can I rely on Canada Pension Plan (CPP) in retirement?

The Canada Pension Plan (CPP) is a retirement pension plan that you contribute to while you work. The CPP retirement pension is a lifetime benefit that you can receive as early as age 60 or as late as age 70. The amount of your pension is based on your earnings and how long you have been contributing to the Plan.

To receive the CPP retirement pension, you must have contributed to the CPP for at least one year. The maximum pension is paid to contributors with at least 40 years of contributions. If you have less than 40 years of contributions, your pension will be reduced.

The CPP retirement pension is not designed to be your only source of income in retirement. It is intended to supplement other sources of income, such as company pensions, personal savings and government benefits such as Old Age Security.

You cannot start receiving your CPP retirement pension until you stop working or reduce your work hours to less than 30 hours per week. If you continue to work while receiving your pension, you must continue to contribute to the CPP.

The CPP retirement pension is taxable. The amount of tax you pay will depend on your personal tax situation.

The CPP retirement pension is indexed to inflation. This means that the pension is adjusted every year to reflect the cost of living. The indexation rate is based on the Consumer Price Index, which measures the cost of a basket of goods and services.

You can apply for the CPP retirement pension online, by phone or by mail. To apply online, you will need a valid credit card. To apply by phone, call the CPP toll-free number 1-800-277-9914. To apply by mail, complete the CPP retirement pension application form and send it to the address on the form .

The CPP retirement pension is a secure source of income in retirement. It is backed by the Government of Canada and is paid for by working Canadians. The CPP is a sustainable pension plan that will be there for future generations of Canadians.

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Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.