Canada Pension Plan

The Canada Pension Plan is a mandatory deduction, taken from your wages in every pay period, that is matched by your employer. This goes towards a retirement pension at age 65.

The amount is based on your gross earnings, each pay period. It is NOT supposed to be your entire income at retirement, but only a minimum to build on, with your own contributions to a private savings retirement plan, called an RRSP (Registered Retirement Savings Plan).

Contributions to the RRSP are NOT taxed until you officially retire, at which time you will be in a lower tax bracket due to a reduced income level. You choose at what age you want to retire after age 65. There is no age at which you “must retire ” in Canada.

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About Kay McMahon

Kay has been an expat for nearly 30 years. She set up the British Expat website back in early 2000, whilst living in London and missing the expat life. These days she spends much of her time lugging computers and cameras around the world. (Dave gets to deal with all the really heavy stuff.)

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