There are two main retirement benefits available to Canadians: the Canada Pension Plan (CPP) and Old Age Security (OAS). While both are government-funded programs, they have different purposes and eligibility requirements.
The CPP is a monthly payment that aims to replace a portion of an individual’s income from employment upon retirement. In order to be eligible, a person must have made contributions to the CPP during their working years. The amount of CPP received is based on the contributions made and the number of years an individual has worked. It is available to all Canadians who have reached the age of 60, regardless of their employment status.
In contrast, OAS is a monthly pension that provides a basic income to seniors over the age of 65. It is not based on employment history, but rather residency in Canada for at least 10 years after the age of 18. Therefore, even if a person has never worked or made CPP contributions, they may still be eligible for OAS. However, the amount received may be reduced if an individual’s annual income is above a certain threshold. OAS also offers additional benefits such as the Guaranteed Income Supplement for low-income seniors.
Overall, the main difference between CPP and OAS is their eligibility criteria and purpose. CPP aims to replace retirement income from employment, while OAS provides a basic income for seniors. It is