Financial Assistance after retirement in Canada- helps you lead great life after retirement

The age of retirement in Canada varies from person to person depending on the job they do and the health condition they are in. After retirement, people might qualify for financial assistance provided they fulfill some eligibility criteria set by the Government. The Government of Canada runs three programs that oversee financial assistance and pension schemes catering to retired senior citizens. Here is some more information about the retirement in Canada programs.

Financial Assistance after retirement in Canada- helps you lead  great life after retirement
Financial Assistance after retirement in Canada- helps you lead great life after retirement

Canada Pension Plan – Helps you retire and lead luxury life

This retirement in Canada pension plan is the most widespread pension plan in Canada after excluding Quebec. Quebec province has its own pension plan named Quebec Pension plan (QPP). Both the schemes work together to provide limited income replacement in the case of a death, disability, and retirement.

The financial assistance of the pension plan can start from the age of 60 but the payments are decreased. The age for getting a full pension is 65 and after that, the pension increases.

Eligibility depends on an individual’s contribution to the plan. The benefits are calculated on the basis of how long and how much a person has contributed to the CPP. The pension doesn’t start on its own and an application must be made to start the same. Ideally, you apply 12 months before you want your payments to start.

Old Age Security (OAS)- Helps Canadians lead better life in retirement than in work

This is probably the largest financial assistance program that the Government of Canada has. Funded by the revenue of the administration, people do not contribute to it directly. Provided that an individual meets the residential and legal requirements of Canada, senior citizens who are aged 65 and above may be provided with a monthly payment. The same applies to workers who have worked abroad for Canadian employers.

Must Read :  Long Wait For Foreign Caregivers To Call Canada their Home

The benefits are calculated based on certain conditions. One of the main conditions is for how long has the applicant lived in Canada after the age of 18. On the basis of that, people either qualify for a partial or full pension. Before the start of the OAS pension, the beneficiary must have resided in the country continuously for 10 years.

The pension benefits can be deferred for up to five years with an increase of up to 36% in the pension. It should be noted that Old Age Security pension is not dependent on your employment status.

Guaranteed Income Supplement (GIS)- Makes old age great in Canada

The beneficiary must be eligible for and receiving the Old Age Security Pension. The GIS benefits are given to individuals with low income and the financial assistance is exempted from any tax liability.

There’s a maximum annual income threshold and the applicant’s annual income needs to be lower than that. Besides OAS pension, this is the only other eligibility criterion.

The eligibility for GIS is reviewed every year based on the returns that are filed by a beneficiary. Based on that information, it is decided whether the payments should be stopped, renewed or if more information is required to make any evaluations.

Besides these programs, provisions are made for spouses as well as survivors of an individual who are spouses or common-law partners.