CPP versus OAS

Old Age Security pension is a monthly payment available to Canadians age 65 and older. The average monthly payment in late 2011 was $508

• The Canadian Pension Plan is retirement income available to Canadians who have worked and paid into the plan via paycheque deductions. The amount a person receives depends on how many years the person worked and how much money they contributed to the plan.

A worker’s annual contribution is equal to 9.9 per cent of their pensionable income and half is funded by their employer.

According to Service Canada, the average monthly CPP pension amount in 2011 was $512.

• Old Age Security pension is a monthly payment available to Canadians age 65 and older.

Monthly payments are adjusted quarterly, based on the Consumer Price Index. The average monthly payment in late 2011 was $508.

 

Retirees with an annual income of more than $67,668 have their OAS monthly payment reduced.

– Kamloops This Week