When you turn 60 years old, you can start replying for your retirement benefit. The maximum amount you can receive is approx. $2,000.00/month
1. CPP retirement pension (taxable income)
To qualify for CPP, you must be
l At least 60 years old
l Have made at least one valid contribution to the CPP
l You must apply in advance of when you want your pension to start
l In 2023, the max amount of CPP is approx. $1,306.57
Source: Canada Pension Plan – Monthly payment amounts - Canada.ca
l When you work while receiving the CPP retirement pension, you can still receive your CPP while under age 70 and decide to keep making CPP contributions; however, your contribution will stop when you reach 70, even if you are still working. ( At age 65, you can choose to stop contributing)
l The calculation using your best 40 years of earnings, however, it will “drop out” up to 8 years of your lowest earnings from your earning history.
l Period of raising children, the child-rearing provision ( for the children under age 7) will enhance your CPP retirement pension.
l Period of disability, the calculation will “ drop out” those months when calculating the base component of the CPP benefit.
l You and your spouse can share your pension to lower your taxes in retirement by decreasing your taxable income.
2. Old age security payment with GIS and allowance
Old age security(taxable income)
l You can estimate your OAS payment online Old Age Security Benefits Estimator: Questions - Canada.ca
l The OAS payment amount is determined by your age (65) ; how long you have lived in Canada and your income
l If you are living in Canada, you must be 65 years old, be a Canadian citizen or a legal resident, have resided in Canada for at least 10 years since the age of 18
l If you are living outside Canada, you must be 65 years old, be a Canadian citizen or a legal resident on the day before left Canada, and have resident in Canada for at least 20 years since the age of 18.
Guaranteed Income Supplement (not taxable)
l To receive GIS, you must be 65 and living in Canada
l Receive the OAS
l Lower income level
Allowance for spouse ( not taxable)
l You are age 60 to 64
l You live in Canada
l Your spouse is eligible to receive the GIS
l Your combined annual income should be less than $39,648
Allowance for the Survivor ( not taxable)
l You are age 60 to 64
l You live in Canada
l Your spouse has died
l Your annual income is less than $28,872