Pensioners > Pensioner Handbook > Other forms of retirement income

Other forms of retirement income

Your retirement income

Your pension makes up only one part of your total retirement income. It's important to take into account the other sources that may be available to you. These include your government pensions and post-retirement employment, as well as your personal savings, such as RRSPs.

Government pensions

Most Canadians are eligible to receive retirement income through one or more of the social programs offered by the federal government.

If you have spent time in the Canadian workforce, you have likely made contributions to the Canada Pension Plan (CPP). Your employers have also paid into the CPP on your behalf. When you retire, you can begin collecting the CPP benefits you have earned.

You must apply to Social Development Canada to begin collecting your CPP benefit. If you apply at age 65 you will receive the full benefit you are entitled to collect. However you have the option to begin collecting a reduced CPP pension as early as age 60 if you meet the eligibility criteria. The reduction in your benefit is not a penalty. It reflects the longer length of time you are expected to collect your pension. You will be pleased to know that choosing to collect a CPP pension before reaching age 65 does not affect your CAAT Plan Bridge Benefit.

If you are over 65 and have not yet applied for your CPP pension, you may do so at any time until you turn 70. In this case, you will receive a benefit that is larger than the benefit you would have received at age 65 or before.

Old Age Security

The Old Age Security (OAS) benefit may also be available to you once you turn 65. You must also apply for the OAS benefit in order to begin collecting it. This benefit provides a minimum retirement income to all Canadians, regardless of whether or not you have worked in Canada. You do have to have lived in Canada for a certain period of time and you may have to repay some or all of the benefit if you are a higher-income senior. OAS also offers low income supplements, such as the Guaranteed Income Supplement and the Allowance, to those who qualify.

For more information see Sources of retirement income. To get details about applying for your government pensions, contact Social Development Canada by phone at 1-800-277-9914 or visit their website at www.sdc.gc.ca.

October 2005