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Retirement in Canada

Updated: December 5th, 2022

If you want to retire in Canada, there are various requirements you’ll have to meet. The government also offers you opportunities for a pension, or you can open your own retirement fund privately. Find out if it's time to kick back, relax and enjoy your retirement in Canada.

How Does Retirement Work in Canada?

In Canada, pensions may be public, private, collective, or the result of individual savings. The foundation of the state pension system is the Canada Pension Plan (CPP). Every employed person who is at least 18 years old is required to put some of their earnings into a pension plan.

Since government retirement benefits like Old Age Security (OAS) are intended to begin at age 65, many Canadians choose to retire around that time. Old Age Security (OAS), funded by Canadian taxes, offers benefits to qualified Canadians 65 and older. This is one component of Canada's three-part system. Benefits are made accessible as early as age 60 under the Canada Pension Plan (CPP), which is supported by payroll deductions (much like Social Security in the United States).

Pensions and Financial Assistance

In Canada, retired individuals and senior citizens are well-looked after. There are many programs, facilities and services that cater exclusively to this demographic.There are two programs you should be looking into: the Canada Pension Plan (CPP) and a Registered Retirement Savings Plan (RRSP).

Canada Pension Plan (CPP)

When you retire, you can replace a portion of your income with the monthly, taxable retirement pension from the Canada Pension Plan (CPP). If you meet the requirements, you will always be eligible to receive the CPP retirement income. To be eligible, you must:

be at least 60 years old and have made at least one legitimate CPP contribution

Valid contributions may come from work you did while living in Canada or as the result of getting money from an ex-spouse or ex-common-law partner after the relationship has ended.

Your monthly payment is determined by your average earnings over the course of your working career, your CPP contributions, and the age at which you begin receiving your CPP retirement income. Your CPP contributions are determined by your income.

The usual pension eligibility age is 65. You can, however, begin getting it as early as 60 or as late as 70 years old.

The amount you would get each month will be less if you begin receiving your pension early. You will be paid more each month if you opt to start later. There is no advantage to delaying pension receipt until after age 70. When you become 70, you can no longer get more than that much each month.

Registered Retirement Savings Plan (RRSP)

A Registered Retirement Savings Plan (RRSP) allows individuals to save for retirement while lowering taxes through their banking institution. Putting money into this account means that you can deduct the amount from the taxable income for that year.

This type of account should be opened as quickly as possible to start saving for retirement, however, in some cases you can use the money for other essential items like the purchase of your home.

You will, however, need to decide what you would like to do with your RRSP when you turn 71 years old. Most Canadians opt for a Registered Retirement Income Fund (RRIF).

You are eligible to open an RRSP if you:
Are a Canadian resident for tax purposes and file income taxes in Canada
No age limit
Have an income

When you retire you may be eligible for government pension assistance, though you will need to assess whether you are eligible for the specific programs.


There is no age limit for an RRSP. You or your guardian can set one up.

What financial assistance will I recieve from the Government when I retire?
Canada Pension Plan (CPP) Retirement Pension
Old Age Security (OAS) Pension
Guaranteed Income Supplement (GIS)
Allowance and Allowance for the Survivor

Employment Pension

While working, you may receive a pension plan from your employer which will help you save for retirement. There are usually two types of pension plans; the Defined Benefit Plan, which gives you a specific percentage of your salary when you retire, and the Defined Contribution Plan, which allows you to benefit based on the amount you and your employer contributed, including interest.

Your company agrees to provide you with a consistent income once you retire under a defined benefit pension plan. The plan usually include contributions from both you and your employer. Your donations are combined to create a fund. The fund is managed and invested by your company or a pension plan administrator.

Let Us Help You

By becoming a Canadian permanent resident, you could benefit from a great retirement plan. Look toward your furture now and plan what’s to come. Speak to a consultant now who will guide you through the process.


What is the Average Canadian Retirement Income?

According to, in July 2022, the typical monthly payment for a new retirement pension (at age 65) will be $737.88. The amount you can get up to the maximum will depend on your circumstances. By entering into your My Service Canada Account, you may obtain a preliminary estimate of your monthly CPP retirement pension payments.

How Much do you Need to Retire in Canada?

According to, A single person should have $800,000 saved for retirement. In contrast, a couple should have $1.6 million, according to estimates based on the average income in Canada. Based on the amount, this pension fund should last you for approximately 25 years at $32,000 per year.

Can a Foreigner Retire in Canada?

Retirement visas are not available in Canada. Pathways to permanent residency include the Express Entry immigration procedure, which is designed for those with certain talents or who wish to start enterprises in Canada. You can apply for a pension benefit if you have permanent residency

.What is the Retirement Age in Canada?

The typical retirement age is 65. You can, however, begin getting a pension fund as early as 60 or as late as 70.

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