Thousands of Canadians missing out on pension benefits
While it’s not Greece, Canada is still fairly comfortable place to retire.
A working couple who is retiring today at age 65 after earning the average industrial wage throughout their careers will receive a combined annual Canada Pension Plan and Old Age Security pension of about $36,000, indexed for life.
That’s a significant amount of retirement income – which makes you wonder why so many people never get around to collecting so much of it, says consumer advocate Richard Shillington.
*Bing: Where to find government benefits
Here are some startling statistics from a research paper he authored commissioned by the Task Force on Financial Literacy:
- 160,000 seniors are not getting the OAS benefit they’re entitled to receive (representing almost $1 billion in lost pre-tax income);
- 150,000 seniors are not getting the Guaranteed Income Supplement benefit even though they qualify; and
- 55,000 Canadians are not getting the CPP benefit they’d actually paid into.
Shillington also suggests that a significant number of others are getting less than they should from these programs, largely because they don't know the rules.
Taxpayers have to apply for these benefits, which are not paid automatically as soon as you become eligible for them.
Moreover, if you apply too late, you won’t get all the benefits you missed. Retroactive payments are limited to 11 months for OAS, GIS and CPP under federal law.
Shillington believes the federal government should do more to ensure everyone is getting his or her fair share but that would be an expensive exercise.
Do you know anybody who's been missing out? Where they eventually able to set things right?
By Gordon Powers, MSN Money
Posted by: Elmo | Nov 16, 2021 11:16:43 PM
@Dazed & Confused... quote "I think the only thing my generation has to look forward to, is an giant asteroid striking the earth". Awww... poor baby, still wearing that Chicken Little costume aren't ya ? If your generation is really lucky, it'll only be a small asteroid and it'll only crash into your widdle head. Win Win situation !!
Posted by: MARIA KOSTIC | Nov 18, 2021 5:05:32 PM
I think the pensions are adequate. What seniors need is a free TTC, so they go out more and do not get sick of boredom and have yhe OHIP pay for it.
The Europeans are smart. They let Seniors ride from Portugal to all around Europen Union for free.
These new Canadians M.P. do not know anything about human beings, just money, money and more money. They are greedy!
Posted by: S Taylor 1 | Nov 19, 2021 2:03:27 PM
1) People need to prepare for retirement themselves and NOT rely on work pensions. Ask Stelco peeps or anyone else whose company went under.
2) Think about the best planning for you.....RRSPs will cause claw back on gov't pensions so this doesn't mean DON'T get them , it means think strategically. Get them in the lower income spouses name.....but the higher income contributes for the tax deductions. If you are BOTH high income, think of something else.
3) SO MANY people do NOT realize their work pensions are reduced by CPP. Yep,your work pension should be $1000 but you receive $500 CPP.....you should have total $1500 but you don't, work reduces their $1000 by the $500....dollar for dollar. (Worth taking CPP at 60 now isn't it?)
4) Make sure you have a home paid in full for when you retire. Don't be in a position where cost of living is going up. Pension amounts are naturally created based on lower cost needs. too many people are setting themselves up horribly....don't blame the gov't for this, this is your responsibility.
5)Make sure you get everything you need.....CPP- OAS, GIS, GAINS (Is automatically calculated) RRSP, Work Pensions....don't miss deadlines Also, have a TFSA....speak to your financial institution about this.
ALSO....very important....
6) MAXIMIZE your tax returns...use that money to help prepare your future ...... don't rely on everyone else or the gov't.
Posted by: why bother | Nov 21, 2021 5:15:40 PM
with all of the immigrants coming in and collecting welfare, combined with the lazy me, me generation who are raising families on welfare, my pension plan will be a .45 caliber bullet to the head.
Posted by: cash in my pension | Mar 20, 2022 8:10:04 AM
WOW ! ! What a great discussed about pension benefits , thanks author for your great site.