Canada Pension

There are many types of retirement pension plans in Canada, including various commercial insurance companies, life insurance bonuses, etc. Here we only select the most common ones:

The first level of protection is OAS. If you are over 65 years old and have lived there for more than 10 years, you can receive OAS. The full amount is currently $484/month. To get the full amount, you must live for 40 years, if not, each year counts as 1/40. If you live there for 15 years, you can receive OAS of $185/month per person per month (I’m not counting the fraction, everyone knows one and it’s probably enough). The official website is here: (/en/particu...s/guidreer.pdf

Simply put, RRSP is a personal investment behavior. You put a part of your salary into it every year. This part It is tax-free. For example, if you earn 100,000 yuan a year and put 10,000 yuan into an RRSP every year, your income will only be calculated as 90,000 yuan. So the most direct benefit is that you can get a tax refund because you pay a tax refund every month. 100,000 is used to deduct taxes, but the actual amount you need to declare is only 90,000. The 10,000 put into the RRSP is an investment and can grow year by year. You can also choose the investment projects yourself, and the investment income is also tax-free after retirement. , your income decreases, and you withdraw the money from the RRSP year by year. Because you have retired and your income is low, withdrawing the money at this time is equivalent to making money. Therefore, the money in the RRSP has two benefits. , one is the added value brought by the investment, and the other is the tax difference. Of course, there are also benefits such as the plan to buy the first house. For details, see the link above, but the annual RRSP is up to 18% of your income, and the maximum is. The amount cannot exceed 13,000 per year.

For many immigrants, the main problem is that most of the jobs are temporary workers, and some even provide cash, so they do not provide CPP or QPP at all. Without the protection of a pension plan (to know whether you have a plan, check whether there is a C.P.P or Q.P.P column in the deduction section of your pay stub in addition to provincial and federal taxes). If your annual income is relatively low, There is no benefit to buying an RRSP. Assuming that your current income tax rate is already very low, there is no need to make any tax difference at all, and the money you have in savings can still be used for investment, and they must have lived in Canada for many years. Less than 40 years. Therefore, the "care for old age" that many people dream of when moving to Canada can only be a dream.

The only guarantee for immigrants who do not have a job or whose job is temporary. Your retirement life is your own savings.

With an annual salary of 30,000 yuan, the annual CPP paid is 1312*2=2624 (half paid by the employer, half paid by you), which is 9.9% of the annual salary. After retirement, you will receive 25%, so it is:

2624*25%/9.9% = 6626, which is 6626/12 = $552 per month

But the working years are not included in the above , I don’t know how much working years are a factor, because CPP is calculated based on the age of 18 to 65. If you only work for 20 years, that is, according to ordinary people, if you work at the age of 45 and retire at the age of 65, then you will receive it. The pension is definitely not $552. I think $400~450 is a better estimate. Let’s calculate it as $450 a year.

In addition to the pension, if you have lived in Canada for 20 years. You can receive OAS $242, which is $2904 for the whole year.

Assuming you are single and have an income of 5,400 per year (excluding OAS), you can apply for GIS and get $377.91 per month. 2904 + 5400 = $8304. Although it is taxable income (taxable income), But in fact, the income is very low and there is no need to pay. So it’s about 377.91 + 450 + 242 = $1070 every month

Assuming you have a spouse, but he/she has never worked and does not have a pension, you two can get GIS 283.54/person per month, taxable income It is 5400 + 242*2*12 = 11208. After tax deduction, you will get about 10384, so every month there is about 283.54*2 + 10384/12 = $1432

Suppose you have a spouse, but he/ She has a job exactly like yours, with an annual salary of 30,000, and she has worked for 20 years. Your combined pension is 10,800. You can still apply for GIS, and each of you has 170.54 per month. At this time, the taxable income is 10800 + 242*2*12 = 16608, and you will probably get 14208, so every month there is about 14208/12 + 170.54*2 = $1525.

Let’s look at this situation. A couple has never worked a day and has lived there for 20 years. Then they can get OAS + GIS = 242*2 + 395.54 *2 = $1275.

The above is calculated based on Ontario tax rates. Of course there are many assumptions, but the error should not exceed $200/month. The above calculation may not be correct, and corrections are welcome.

But you can see that CPP or QPP actually do not play a very big role. Canadians' comfortable retirement life depends to a great extent on RRSP.