As more countries around the world are facing an aging population, the topic of pension has become increasingly relevant. Canada is no exception, with around 6.5 million seniors aged 65 and above, and this number is expected to double in the next two decades. This has brought attention to the crucial role pensions play in ensuring financial stability and security for the retired population in Canada.
The Canadian pension system is divided into three main components: the Canada Pension Plan (CPP), Old Age Security (OAS), and private pension plans. The CPP is a mandatory program for most working Canadians, while the OAS is a basic income supplement provided by the government for eligible seniors. Private pension plans are offered by employers to their employees as an additional retirement savings mechanism. These three components work together to provide a comprehensive and reliable source of income for retired Canadians.
Having a strong pension system is vital for the well-being of senior citizens in Canada. It not only provides them with a regular income stream, but also allows them to maintain their standard of living and have a sense of financial security during their retirement years. Moreover, the CPP and OAS are indexed to inflation, providing seniors with a stable income that can keep up with the rising cost of living.
However, it is important for Canadians to plan and save for their retirement on their own as well. With the rising cost of