The basic building blocks of retirement income
Old Age Security
You will likely be eligible for benefits under the Old Age Security (OAS) program, also administered by the federal government.
The OAS basic pension is a flat rate monthly payment (about $442 today) that is paid to people who are 65 years of age and over and who meet the residency requirements.
Generally, you receive the full pension if you have lived in Canada for 40 years after the age of 18. Partial pensions are also available for newcomers to Canada.
Guaranteed Income Supplement
Moreover, if for whatever reason you are unable to save for your retirement,the federal government also provides the Guaranteed Income Supplement (GIS) which is an income-tested benefit that goes to low-income OAS pensioners. But at a maximum of $6,300 per year currently, it is a very modest income.
Allowance benefits are also available to low-income 60-64 year olds who are married to GIS recipients or who have been widowed.
The CPP and the OAS form a secure, modest part of your retirement income and should be supplemented with additional personal savings.
If you are also a member of a company pension plan, then you are already supplementing your CPP and OAS savings.