Retirement planning: government plans

Wondering about the income you’ll have access to in retirement and whether it will be enough? We’ve got the answers to your questions.

What are the pension plans available in Canada?

There are two government plans: the Canada Pension Plan (CPP) (or, in Québec, the Québec Pension Plan (QPP)) and the Old Age Security (OAS) program.

1. QPP/CPP

These plans are contributory, which means that to be eligible, you must have made contributions out of earned income. Benefits are determined based on three factors:

• Your average working income registered with the plan
• The number of months you contributed to the plan
• The age you start receiving your pension

In 2025, the maximum monthly benefit was $1,433.00.

To see an estimate of your monthly pension payments, you can consult and download your CPP Statement of Contributions from the Canada Pension Plan website or your QPP Statement of Participation from the Retraite Québec website.

2. OAS

OAS is a universal, non-contributory plan. All Canadians who meet the minimum criteria are eligible. To be eligible for the full amount ($734.95 in 2025 for people aged 65 to 74), you must:

• Be aged 65 or over
• You must be a Canadian citizen or legal resident
• Have resided in Canada for at least 40 years since the age of 18 (partial amount for people who have resided between 10 and 39 years)

Will income from government plans be enough to live comfortably in retirement?

Unfortunately, even the maximum amount of government plans are more of a complementary income than a primary source of income. Also, to be eligible for the maximum amount, you have to have contributed for at least 39 years. Many people claim their benefits earlier than age 65, leading to reduced benefits.

Therefore, to achieve your retirement goals, you’ll need to rely on supplemental plans (RRSPs, TFSAs, private pension plans).

The importance of getting advice

If they could turn back the clock, many retirees would consider getting more retirement planning advice.

The role of an advisor in creating a retirement plan goes well beyond simply calculating your available income. A disbursement plan will also take into consideration:

• Your goals (travel, renovations, financial assistance for your children and/or grandchildren, etc.)
• Your family history
• Unexpected expenses
• Inflation
• An increase in health care expenses over time
• A sequence of activity periods, from an active period to gradually less active periods, during which your financial needs will be different

Every retirement plan made by specialists is customized based on your needs, your sources of income and the dreams you have for your retirement.

Find an advisor today.