CPP was created in 1965 by the Liberal government to replace 25% of your average working income up to a maximum per year. In 2017 the Liberals introduced changes to gradually take affect between 2019 and 2025 to increase the CPP replacement amount to 33% and greatly increase the maximum pensionable earnings.
OAS was originally created in 1927 and paid out to people 70 and older with income below some level (means tested). In 1965 the Liberal government changed the age to 65. In 1967 it was expanded to include the Guaranteed Income Supplement for low income seniors. As part of the Conservative governments 2012 budget they planned to increase the eligibility age to 67 gradually by 2023.
- https://maplemoney.com/the-history-of-oas/
- https://www.bnnbloomberg.ca/government-won-t-raise-oas-cpp-eligibility-families-minister-1.666405
RRSP is a tax deffered account that can hold savings and investments that will be taxed on withdral. It was created in 1957 by the Liberal government and originally only allowed up to 10% of you gross income to be saved. In 1990 the Progressive Conservative government increased the contribution limit to 18% and allowed unused room to be carried over to future years.
As of January 2019 the average payout from CPP for someone turning 65 is $723.89/month or $8,686.68/year. The maximum possible payout is $1,154.58/month or $13,854.96/year. CPP is indexed to inflation every January.
If you take the CPP retirement pension early, it is reduced by 0.6% for each month you receive it before age 65 (7.2% per year). This means that, an individual who starts receiving their CPP retirement pension at the age of 60 will receive 36% less than if they had taken it at 65.
A full OAS pension of 601.45/month or $7,217.40/year is available to anyone who's lived in Canada for 40 years. The amount is reduced proportionally for fewer years. The amount is reduced if your income is over $77,580 (2019). If you make over $125,696 (2019) you will get no OAS.
- https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html
- https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/recovery-tax.html
GIS is available to low income seniors and is relative to your OAS pension amount. Assuming you get the full OAS, are single, and make under $18,240/year you will get $898.32/month or $10,779.84/year. Couples who both get OAS and combined make under $24,096/year you each will get $540.77/month or $6,489.24/year.
If you get the max CPP, OAS and GIS and no other income, you cwould have a combined income of $32k/year.
http://www.cppib.com/en/who-we-are/governance-overview/independence/
CPPIB is internationally recognized as a leading example of sound pension plan management. We are independent of the Canada Pension Plan (CPP), operate at arm’s length from federal and provincial governments and are guided by an independent highly qualified, professional Board of Directors.
CPP is managed by an independant board with no control from the government. It has full discression of the funds it controls (currently $329B. The government can't raid CPP to fund other programs.
A pension is not a savings or investment account. You can't just add up all the money you put in and add compounding interest and decide how much you are owed. CPP is a defined benefit plan where the payout is derived from a formula derived from how much you put in. It will then pay you that much as long as you live.
Pensions employ actuarials to crunch the numbers on life expectancy and investment risk and ensure they have enough funds to pay the defined benefits. This balance is usally achieved by adjusting the contribution rates to make up for increasing life expectancy.
A pension is more like insurance than a savings account. You may live to 101 and get out far more than you paid in, or you may die before collecting a penny.