Canada: OAS & CPP Retirement Age - Key Facts

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Understanding the Canada OAS (Old Age Security) and CPP (Canada Pension Plan) retirement age is crucial for financial planning. This article breaks down the key aspects.

OAS and CPP: What are They?

The Old Age Security (OAS) and the Canada Pension Plan (CPP) are foundational pillars of Canada's retirement income system. OAS is a monthly payment available to most Canadians 65 and older, while CPP is a contributory program based on your earnings history.

Standard Retirement Age

The standard retirement age for both OAS and CPP is 65. However, there's flexibility.

  • OAS: You can defer receiving OAS payments for up to 5 years after age 65. Each month you delay increases your payment amount.
  • CPP: You can start receiving CPP as early as age 60, with a reduced monthly payment. Alternatively, you can delay taking CPP until age 70, which increases your monthly payment.

Early vs. Delayed Retirement: Key Considerations

Deciding when to start receiving OAS and CPP depends on your individual circumstances. Consider these factors:

  • Financial Needs: Assess your current and projected income needs.
  • Health: Your health and expected longevity can influence your decision.
  • Other Income Sources: Factor in other retirement savings, such as RRSPs or workplace pensions.
  • Actuarial Adjustment: Understand how early or delayed take-up affects your overall benefit amount.

OAS Clawback

Be aware of the OAS clawback. If your individual income exceeds a certain threshold, a portion of your OAS payments will be clawed back (repaid to the government). — Lewis Cope: Who Is His Girlfriend?

CPP Contribution History

The amount of CPP you receive depends on your contribution history. The more you've contributed, the higher your CPP payments will be. — Travis Alexander Autopsy: Shocking Details Revealed

Planning Resources

  • Service Canada: Provides detailed information on OAS and CPP.
  • Financial Advisors: Can help you create a personalized retirement plan.

Understanding the Canada OAS and CPP retirement age, along with the factors that influence your benefits, empowers you to make informed decisions about your financial future. Planning early is crucial.

[Internal Link: Link to another relevant article on Canadian retirement planning] — Korean Body Scrub: Benefits And How-To Guide

[External Link: Link to the official Service Canada website]