Canada's public pensions, namely Old Age Security and the Canada Pension Plan, have served Canadians for decades and have contributed to a significant reduction in poverty among seniors.

Old Age Security is currently the Government of Canada's largest program, providing 3.8 million seniors with more than $24 billion in benefits each year. The Canada Pension Plan provided $18.9 billion in benefits to 3.5 million people in 1999.

Canada's Retirement Income System

Public pensions are an important part of the Canadian retirement income system which can be compared to a three storey house.

The First Storey - Old Age Security
The first storey represents the Old Age Security Program which provides a pension to almost everyone over 65 who has lived in Canada for a required length of time.

The Second Storey - Canada Pension Plan/Quebec Pension Plan
The second storey represents the Canada and Quebec Pension Plans which provide a retirement pension to seniors as early as age 60. The amount of the retirement pension depends on how much and for how long the person contributed.

The Canada Pension Plan operates in every province and territory except Quebec which has the similar Quebec Pension Plan.

The Third Storey - Private Savings
The third storey of Canada's retirement income system is made up of employer-sponsored pension plans, Registered Retirement Savings Plans (RRSPs), and other private savings.

The first and second storeys of Canada's retirement income system comprise Canada's public pension system. Together, Canada's public pensions account for almost 50 percent of current seniors' income.

Old Age Security and the Canada Pension Plan are not intended to meet all the retirement needs of Canadians. They are designed to provide a modest base on which to build additional, private savings for retirement.

Learn more about Public Pensions

Old Age Security and the Canada Pension Plan/Quebec Pension Plan are a Canadian success story. In fact, Canada's retirement income system is considered one of the best in the world in terms of equity, level of benefits and affordability, according to the Organization for Economic Co-operation and Development (better known as the OECD).

To learn more about Old Age Security and the Canada Pension Plan, visit the Human Resources Development Canada's web site at:
http://www.hrdc-drhc.gc.ca/isp