Frequently Asked Questions (FAQs)
This page answers some of the most common questions Canadians have about retirement income, including CPP, OAS, GIS, and retirement planning decisions.
Canada Pension Plan (CPP)
When should I start CPP?
You can start CPP anytime between age 60 and 70. Starting early reduces your monthly payment, while delaying increases it. The best choice depends on your health, income needs, and life expectancy.
Can I work while receiving CPP?
Yes. You can work and collect CPP at the same time. If you are under age 70 and still working, you may also continue contributing to increase your future benefits.
How much CPP will I receive?
Your CPP amount depends on how much and how long you contributed during your working years. Lower earnings or years without contributions will reduce your benefit.
Old Age Security (OAS)
When can I start OAS?
OAS normally starts at age 65, but you can delay it up to age 70 to receive a higher monthly amount.
Do I need to apply for OAS?
Sometimes enrollment is automatic, but many people must apply. It’s best to check with Service Canada before turning 65.
Is OAS taxable?
Yes. OAS payments are considered taxable income.
What is the OAS clawback?
If your income is above a certain threshold, part or all of your OAS may be reduced through the OAS recovery tax.
Guaranteed Income Supplement (GIS)
Who qualifies for GIS?
GIS is available to low-income seniors who receive OAS. Eligibility depends on your total income.
Is GIS taxable?
No. GIS payments are not taxable.
Retirement Income Planning
Can I retire if CPP and OAS are my only income?
Many Canadians rely mainly on government benefits, but your lifestyle may need to be adjusted. Planning your housing, expenses, and debt is critical.
Do I have to take money from my RRSP?
By the end of the year you turn 71, your RRSP must be converted to a RRIF or annuity, and minimum withdrawals will begin.
How are retirement withdrawals taxed?
CPP, OAS, RRIF withdrawals, and pensions are taxable. Proper planning can help reduce taxes in retirement.
Self-Employed and Contractors
What happens if I didn’t contribute to CPP?
If you did not make CPP contributions, your CPP benefit will be lower or may be very small. However, you may still qualify for OAS and possibly GIS.
Need Personalized Advice?
Canada Retirement Income provides general educational information only. For advice based on your personal situation, consider speaking with a qualified financial or tax professional.
Canada Retirement Income
Helping Canadians understand their retirement options with clear, practical guidance.