Third level - Private savings
The third level, private savings, includes employer-sponsored pension plans and Registered Retirement Savings Plans (RRSPs), as well as investments and other savings. It is very important to consider how to use these to supplement your Old Age Security and Canada Pension Plan pensions and to start planning for retirement today.
Your Statement of Contributions forecasts the amount of CPP you may receive in retirement. Keep in mind that this amount is a current estimate and subject to change depending on how much you contribute to CPP and for how long (contributory period). If your retirement estimate appears insufficient to you, remember that it assumes your earnings will continue at the same level to age 65.
CPP is, along with OAS, designed to provide a secure, modest base upon which to build additional retirement income.
Now is the time to look at the other resources that may be available to you for retirement planning. It's important for you to look at your own circumstances to decide what level of income will be right for you.
- First level - the Old Age Security programs
- Second level - the Canada Pension Plan
- Third level - private savings