It has been seen that people find financial planning for retirement quite difficult. More often the CPP i.e. (Canada Pension Plan) becomes very difficult for people to not only understand but also to estimate. Seeing this Toronto retirement homes makes it a point to educate you on the various aspects of CPP through this post. We, at retirement homes Toronto do understand that if you are involved in after retirement planning then having a strong knowledge about the CPP is important.
CPP is defined as one of the most important part of the Canadian Public Retirement Income system. The second part of CPP is the OAS (Old Age Security), while the other Canadian Public Retirement Income comes under the RRSP (Registered Retirement Saving Plan). Both of them will be discuussed in our next post.
Now it is imperative to understand the criteria of CPP, which states that all Canadians who are of and above 18 years have to on a mandatory rule contribute a certain portion of their earnings to the CPP. The CPP makes the employer and the employee both to contribute an equal share in an individual CPP. In case a person is self employee then he has to bear the responsibility as employer and the employee. The administrating authority for the CPP is the Human Resources and Social Development Canada.
The income one receives after the retirement depends upon the contribution made and the duration of the contribution. A contribution rate of 4.59% has been decided from the year 2003 and is effective till date. Normally the retirement age benefits are subjected to start by the age of 60 years. But seeking them at the age of 60 will significantly lower the pension and also a penalty of 30% is levied on you , while if you decide to take the pension after 65 or delay it till 70, you will find an increase in the pension as a reward.
The other things which you are entitled under the CPP include the Death Benefits, Sharing Privileges and Disability Pension. The Disability Pension gives you…