Sources of income during retirement
Understand where your money comes from in retirement. This can help you set goals and make choices with confidence.
Spotlight on
If you need help or someone to talk to, visit our mental health support page.
Public pensions
Public pensions are the Old Age Security (OAS) and Canada Pension Plan (CPP).
These pensions are not intended to cover all your financial needs in retirement. Most Canadians will need to save during their working years or have another source of income to have enough money to maintain their lifestyle when they retire.
Public pensions give you a stable base of income in retirement. You can add to this with a workplace pension, personal savings or investments.
Canada's public pensions are safe and grow over time to keep up with the cost of living.
Old Age Security (OAS) pension
The OAS pension is a monthly benefit payment for eligible seniors aged 65 and older. You don’t need to have worked or made contributions to qualify, eligibility is based on how long you’ve lived in Canada.
You are eligible for a full OAS pension if you've lived in Canada for 40 years, after the age of 18. You could collect a smaller, partial pension if you've lived in Canada between 10 and 40 years.
You may also be eligible for an OAS pension if you've lived or worked in another country that has a social security agreement with Canada.
For more details, visit the OAS pension page.
OAS pension amounts
The amount of your OAS pension depends on:
- Your age; and
- How many years you’ve lived in Canada after age 18
Use the Old Age Security benefits estimator to find out how much money you could get.
To learn more, visit Decide when to start receiving your government pensions.
The Guaranteed Income Supplement (GIS)
The GIS is a monthly tax-free payment for low-income seniors who receive the OAS pension. It provides additional retirement income to OAS pension recipients who have little income other than the OAS pension.
Eligibility is based on your annual income, or your combined income if you have a spouse or common-law partner.
To qualify for the GIS, you must:
- live in Canada
- receive the OAS pension
- have income below a certain amount
Smart tip: The government automatically reviews eligibility each year when you file your taxes. If you are eligible for the GIS when you turn 65, you may be automatically enrolled at the same time as the OAS pension. If you have not been enrolled and believe that you might qualify, you may need to apply.
Visit the Guaranteed Income Supplement page to determine if you qualify, how much you could receive, and how to apply.
GIS earnings exemption
If you are employed or self-employed and receive the GIS, you can earn up to $5,000 with no reduction to your benefit amount. For earnings between $5,000 and $15,000, only 50% of the income you receive will reduce your GIS benefit amount.
To learn more, visit:
Allowances
If you are eligible to receive the GIS, your spouse or common-law partner may also be able to receive the Allowance benefit if they are age 60 to 64 and you have combined income below a specific amount.
Benefit for a surviving spouse or common-law partner
You could receive the Allowance for the Survivor if:
- you are 60 to 64 years of age
- your spouse or common-law partner has passed away and you have not remarried or entered into a common-law relationship
- your annual income is less than the maximum annual income threshold for the Allowance for the Survivor
Canada Pension Plan (CPP)
The CPP retirement pension provides income replacement for those who have worked or been self-employed in Canada. It is a monthly payment that replaces part of your work earnings in retirement. The amount of your CPP pension is based on your earnings, contributions to the Plan and your age when you decide to start receiving your CPP retirement pension.
For more details about if you qualify for the CPP retirement pension, visit the Canada Pension Plan retirement pension page.
If you've worked or lived in Quebec, visit the QPP retirement pension website.
How much you could receive
The amount of your CPP retirement pension depends on how much and for how long you have contributed to the Plan.
The amount of the CPP retirement pension is increased for inflation every January.
To learn more about early and deferred pensions, visit:
Workplace pensions
Employer pension plans are separate from government pensions and will help to provide you with a comfortable standard of living in retirement. If your employer offers a pension plan, it's a good idea to learn about the plan, its structure and the benefits it provides.
Personal retirement savings and investments
Saving for retirement is an important step for many to help maintain their lifestyle in retirement.
There are a number of ways to save for retirement, but the two most common are Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Accounts (TFSA). Planning ahead and contributing to an RRSP or TFSA early can give your money more time to grow, providing you with more financial security in retirement.
To learn more visit: Savings and pension plans
Helpful resources
Other public benefits and financial support
Learn more about other benefits and support you may be entitled to.
- CPP survivor's pension: If you are the legal spouse or common-law partner of a deceased CPP contributor
- CPP children's benefit: If you are a dependent child of a deceased or disabled CPP contributor
- Death benefit: A one-time payment on behalf of a deceased CPP contributor
For more information on programs and services, including federal, provincial, and territorial benefits, visit the Benefits Finder.