What are the pension conditions in Canada?

Similar to child welfare, Canada's pension benefits are roughly divided into two categories, direct money and indirect money.

1

Direct payment: OAS

The conditions for paying this pension are relatively simple. The main condition is that you are old. At the age of 65, elderly people in Canada can start applying for a monthly pension. This year's ceiling is $578.53 per month.

However, not everyone in Canada can get this upper limit. This pension mechanism stipulates that after 18 years old and before 65 years old, you must live in Canada for at least 40 years before you can get a full pension. Every year you stay less, you have to reduce the welfare amount accordingly. In addition, before the age of 65, you must have lived in Canada for at least ten years. If it is not continuous enough, it will take the previous three years to make up for each missing year. If you want to get some pension, you must live in Canada for at least 10 years after 18 years.

OAS is essentially a policy of subsidizing the poor and discriminating against the rich. If the retirement income after the age of 65 is too high, OAS will be reduced accordingly. When the pre-tax income of retirement reaches 1 19 and 6 15, this pension disappears completely.

2

Indirect contribution: Canada Pension Plan (CPP)

This kind of welfare is essentially that the working people give money and the retired people take money. People who withdraw money can start withdrawing money at the earliest age of 60, but the policy stipulates that the age is 65 and the latest is 70. In 20 17 years, the upper limit of 65-year-old can be $65438 +0,17/month. Every time he withdraws money one month earlier than the age of 65, the amount will drop by 0.6% permanently, and every time he delays withdrawing money one month, the amount will rise by 0.7% permanently.

However, unlike the above-mentioned RESP, CPP is not an indirect benefit of voluntary giving money, but a benefit of compulsory giving money.

Everyone who works in Canada will make a contribution to CPP every year as long as he has no cash income. This contribution is a fixed proportion of annual income, with an upper limit. Everyone directly understands CPP's contribution as tax payment, and CPP's withdrawal as tax refund.

In fact, even a native Canadian can hardly get the full amount of CPP ($ 1, 1 14. 17). Because a person wants to get all CPP benefits, he must work in Canada for at least 40 years, and then his annual income is not lower than the pre-tax income corresponding to the maximum contribution.

It is not so easy to raise your income after 40 years of work, especially for immigrants.

This is why the average CPP benefit in 20 17 years is $685,438+438+0 per person per month, which is nearly half less than the maximum value. The CPP system is essentially that some people put money into it and some people withdraw money from it. E5a48de588B6E79Fa5E981933133313361332 The aging population has also brought great challenges to the future of CPP.

Generally speaking, for residents living in Canada, Canada is a country where children, medical care and old-age benefits are fairly good, but it is really not enough to rely solely on government benefits.