What is a CPP retirement pension?
Canada Pension Plan (CPP) - Retirement Pension, Service Canada, March 2008
A CPP retirement pension is a monthly benefit paid to people who have
contributed to the Canada Pension Plan. The pension is designed to replace
about 25 percent of the earnings on which a person's contributions were based.
http://www.hrsdc.gc.ca/en/isp/pub/factsheets/retire.shtml
How does the CPP calculate my retirement pension?
The CPP retirement pension is indexed to the Consumer Price Index annually. The average monthly retirement pension at age 65 in 2009 was $472.36. The maximum for 2010 is $934.17. Will you have enough to retire?
http://www.servicecanada.gc.ca/eng/isp/pub/factsheets/rates.shtml
Canada Pension Plan and Old Age Security
Human Resources and Social Development Canada
The OAS (Old Age Security) and CPP (Canada Pension Plan) are designed to
"provide a modest base upon which Canadians can build their retirement income."
Find out more about your retirement readiness based on HRSDC's criteria.
Links on this page include:
- Application forms
- Retirement income calculator
- Old age security program
- Canada pension plan
http://www.hrsdc.gc.ca/en/oas-cpp/index.shtml
Baby boomers
The baby boomer generation will begin retiring at the
end of this decade. In Canada there are 6 million "boomers"
or roughly 20% or the total population.
Net worth of family units, by selected family characteristics
Statistics Canada compiles a number of tables on income, pensions, spending and wealth.
Inflation
Don't forget to include inflation when calculating projected value of your
investments. A 5-10 year government bond yields about 4% interest. After
inflation, real returns would be about 2%.
For the full inflation report, go to:
http://www.bankofcanada.ca/en/ragan_paper/inflation.html
Planning for retirement: are Canadians saving enough?
Canadian Institute of Actuaries, Jun. 2007
If you are considering retiring in 2030, ask yourself the following three simple questions:
- Do you contribute at least 15 percent of your yearly earnings to a Registered Retirement Savings Plan?
- Does your employer sponsor a workplace pension plan?
- Do you own a home and do you intend to have it paid for by retirement?
If you are 40 years old or over, and have not given much thought to these questions,
your retirement planning picture may be somewhat troubled. While this is not good news,
you should know that you are not alone. Estimates show that two-thirds of Canadians
may not be saving at the levels required to meet required household expenses in retirement.
For the full report, go to:
http://www.actuaries.ca/members/publications/2007/CIA%20Retirement%20(E).pdf