TORONTO, ONTARIO — (Marketwire) — 02/11/12 — As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito-s new book .
Tip Number 21:
Learn how much you are entitled to receive under the Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP)
When you estimate your retirement income, factor into the equation how much you expect to receive from the CPP or QPP (for residents of Quebec). The CPP and QPP are defined benefit pension plans that offer guaranteed income for the life of plan members. However, your entitlement will depend upon how much you contributed as a member of the plan and how long your contributions remained in the plan.
Anyone aged 18 years and older is entitled to participate in the CPP/QPP, but you must have made at least one contribution to the plan and you can only begin to receive CPP/QPP payments after you reach the age of 60. You can apply for your benefits any time between the ages of 60 and 70; you can choose to work after you have begun collecting, and you can continue to contribute until you are 70 years old.
To give you an idea of the size of pension you may be entitled to receive under the CPP/QPP, contact Service Canada and obtain a pension statement.
Tip Number 22:
Understand the benefits of the Old Age Security (OAS) pension
With the OAS pension; you are entitled to receive a monthly income after the age of 65, and eligibility is based on your age and on Canadian residency.
While the maximum OAS pension you are entitled to receive is not a large amount, it is important to understand the rules surrounding OAS pensions and how they are calculated:
For more information on retirement:
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