Canada pension plan - how it works?
Hi all,
I was thinking about the Canada pension plan the other day. I am a contractor and I have to pay my CPP but how does this work? How much is the pension here in Canada and when can you retire? I am too far from retiring but I want to know more. |
Hi Mika,
It is not that simple to explain. It depends on how many years you have contributed and what was your income during that period. To qualify for a CPP retirement pension you have to be at least 65 years old. The maximum pension for 2005 was $828. :rolleyes: I don't know if they've made any adjustment for 2006. |
You can hardly live on $828 per month now, can you? I see CPP as just another tax imposed on already heavily taxed Canadians. The best thing you can do is to contact a qualified accountant, and he/she will explain how things work...
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I wouldn't say it works. Some people work all their life and their pension is less than the amount some people get from welfare.... Think about it, can you live with $800 a month? And this is the maximum!!!
You have to do your own savings and RRSP. |
I now that this pension is not enough but I was curious to know more...Thanks for the replies! :rolleyes:
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