Can an immigrant in Canada look forward to a decent old age?
How much do you think a typical Canadian immigrant will get from the government when he or she retires? $500 a month? Or $1000? Or maybe even more?
The Canada Pension Plan (CPP) is a social insurance program with contributions to and payments from a special fund that depend on the recipient's income. It is one of the two most important parts of the public pension system, along with Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), which is paid to retirees who receive too low a pension.
Note that the state pension is supposed to amount to 25-30% of the entire pension (a kind of safety cushion), and everyone should take care of the remaining 70% himself. This could be private pensions at the expense of the employer or individual tax-deferred savings.
The maximum you can get from the state is $24,346.44 per year. In fact, no one gets that much money, because you have to meet many criteria to get it. The real amount will be 2-3 times lower — on average about $ 1,000 per month. Therefore, one cannot rely exclusively on the state pension.
Let's take a closer look at how much you will receive under CPP and OAS in retirement.
CPP
In 2019, Canadian pensioners will receive a maximum of $1154.58 per month, or $13,854.96 per year. But you should understand that you should not expect to receive the maximum — the actual payments will be significantly lower. The average amount is usually just over $640 per month.
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