How prepared are you for retirement? Once you have a general idea of how much you need to retire comfortably, you can start to think about where that money will come from.
For many Canadians, pensions, whether public, private or a combination of the two, will make up a significant portion of their retirement income. However, Canadians can no longer rely solely on public sources of income to maintain their desired standard of living through retirement. There are many potential sources of retirement income that are available to you.
Provincial and territorial benefit programs
Some provinces and territories offer programs and benefits for seniors and retirees. To find out what benefits and programs might be available in your province or territory, use the Benefits Finder and select your province or territory.
Part-time, temporary work
Many Canadians decide to continue working in retirement to stay socially active, but more do so to add to or supplement their existing retirement savings. If you’re considering working during retirement, you should consider how your post-retirement income will affect your pension and taxes. For example, if you earn more than a certain amount through working, you will have to pay back some or maybe even all of the Old Age Security (OAS) that you receive. On the other hand, if you are receiving a retirement benefit from the Canada Pension Plan (CPP) and you keep working, you can receive a Post-Retirement Benefit from the CPP for every additional year of work you perform. The amount of these benefits will increase with the cost of living and will be paid to you for the rest of your life.
If you’re considering working in retirement, you should speak with a financial professional to discuss how it will affect your retirement income.
For more information on working during your retirement, visit the section, Work After Retirement on the Service Canada website.
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