Government Public Pensions
The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life. When you receive your pay cheque, you will note a CPP and CPP2 reduction on your earnings that contributes to this program.
The Old Age Security (OAS) pension is a monthly payment you can get if you are 65 and older.
Information on the public pensions, other benefits and how to apply, is available on the Government of Canada website.
Registered Retirement Savings Plan (RRSP)
An RRSP is a retirement savings plan that you establish through a financial institution, that the Canada Revenue Agency registers, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Each year, you receive new contribution room to add to your RRSP.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan. You generally have to pay tax when you receive payments from the plan.
Learn more about RRPS on the Government of Canada website.