The Canada Pension Plan (CPP) is a government-funded retirement benefit program for Canadians. It was established in 1965 and is a mandatory contribution for most employed and self-employed individuals over the age of 18. The goal of the CPP is to provide financial support to Canadians in their retirement years, and it is funded by contributions from both employees and employers.
There are several benefits to the Canada Pension Plan that make it an important source of income for retirees. The most obvious benefit is receiving a regular monthly payment once you reach retirement age. This can help supplement other sources of income, such as savings and personal investments. Additionally, the CPP offers survivor and disability benefits to eligible individuals and their families. These benefits can provide much-needed support during difficult times. Finally, the CPP also provides indexing, which means your payments will increase to keep up with the cost of living.
Overall, the Canada Pension Plan is an essential part of retirement planning for Canadians. By contributing to the CPP during your working years, you can ensure a steady stream of income in your retirement. To learn more about the eligibility requirements and how to apply for CPP, visit the official government website. Your future self will thank you for taking the steps to secure your financial stability in retirement with the help of the Canada Pension Plan.