CPP, Explained - Everything You Need To Know About The Canada Pension Plan (CPP vs OAS)

We probably all want to retire someday - but how do you actually pay for everything when you're no longer working? It comes from two places; the money that you save (aka invest!) yourself, and the money that you get from government funding.

In Canada, there's a few types of government funding you could receive for retirement - CPP, or the Canada Pension Plan; OAS, or Old Age Security, and there's also GIS, or Guaranteed Income Supplement. In this video, we're breaking down what CPP is, how it works, and how CPP Investments grows the money between you contributing it and you withdrawing it.

0:00 Retirement doesn't just happen, you have to prepare!
1:06 You need to be saving (aka investing) for retirement
3:22 You also receive retirement income from the government
4:30 The Canada Pension Plan (CPP)
6:11 Canada Pension Plan Investments
9:48 How to withdraw money from CPP when you retire

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[mcryan]

I remember hearing a retiring co-worker tell her manager "I don't think i have enough to retire". That really stuck with me. I have been living frugally ever since and investing. Financial illiteracy is a real problem and should be taught in schools. Thanks for the video.

[thestorygirl]

Thanks for this helpful information. I think many of my fellow Canadians assume (wrongly) that CPP is designed to cover 100% of their retirement. I wish this was covered more explicitly in highschool or something.. seems like there is a gap in information. But so cool to see the CPP working with you guys and others to get the information out and educate Canadians. Another great video, Steph and Den!

[asmrtomo]

Thank you for this informative video! I love the simple breakdown!

[vicahmed]

I've been fortunate to incorporate the Canada Pension Plan (CPP) into my retirement strategy, and it has been a game-changer for securing my financial future. Diversifying your investments, including CPP, is key to building wealth over time. Big ups to everyone working hard trying to earn a living while building wealth. I’m 63 and my husband 65 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money, saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income...

[janicebr]

Hello! What happens to someone who can't reach 39 years of contribution. I moved to Canada later in life and won't have 39 years. Thank you.

[JamesDowns-iu]

Where can I have my pension reviewed? I am sure that my Quebec contributions were not included in calculating my total. Also while I lived in Quebec I also served in the military for approx. 3 years.
Regards,

James

[wyleecoyotee]

Can you please explain why CPP requests information about work pensions

[mikehumphreys]

You left out what the minimum CPP Benefit payment would be

[ihaziqhabib]

The video was very helpful, can you please make a video on whether we should maximize our contributions in these plans or invest elsewhere?

[delnorth]

Is CPP different from my pension plan with current employer or are they the same thing?

[MrLabradorwildman]

Hi Great Video! Question? I have taken CPP at 60 but still working to 65. So i my am still paying in! because i am still paying in is there a formula to work out from CRA how much the next year it be. The Down size is i never made Maxima CPP never had all my years! Still like to work out how much even if only a few Dollars More! it be thank for your time Dave

[MFTW]

Great video! I only started earning the max once I turned 23. Can we make additional investments for the first 5 years from 18-22, that I didn't max my contributions?

[Walter-jvkr]

I am receiving CPP monthly around $1, 050 per month.

[Handleandgredle]

Is CPP invested in the oil and gas industry and will we see a transition of our investments as climate change continues to evolve our standards?

[zephyrsimon]

6:34 So CPP started as a national Ponzi scheme, then had to turn into a hedge fund that the majority of the people are forced into that only pays < ~ $10, 000 a year?

Does the 10% annualized growth also mean that the contributed amounts also grow 10% a year?

[itz.mariavicz]

So wait, if my mom arrived to Canada at 47 and wouldn't have been contributing for 40 years to CPP by the time she retires, does that mean shes not eligible then? 😢

[Jibril_Abdulkadir]

Great videos guys not even close to retirement but at least it’s some good information for me in the way future 😂

[jennaphillips]

This was SUPER helpful, thank you!! I am starting my first full time permanent role out of school next month and have now started researching how to seriously start saving for retirement. This really cleared up the CPP for me - I'd love to know your other recommendations for investing for retirement :)

[MinnieOnCam]

Well this confirms I won't get the full amount and the years my income was extremely low due to low net profit (self-employed) and ODSP those numbers are worst then what I get from ODSP today.

[nykolasbryden]

Sucks when my single father dies my sister and I will only get $2500 from his lifetime CPP payments (well over $100k) . He likely won’t even draw cpp as he’ll wait until after 65 . Should be something extra for the estate, it’s a middle income tax now.