Planning for Retirement May 2016 | WNH | Financial Empowerment and Problem Solving Planning for Retirement Sources of Income for Seniors How to access them – eligibility Changes to CPP How to calculate your future income Q & A Resources

The FEPS (Financial Empowerment and Problem Solving) Program is generously funded by the Ontario Ministry of Community and Social Services and delivered in partnership with: These FEPS training materials and support documents created by West Neighbourhood House for the FEPS program.

Sources of Income for Seniors Old Age Security (OAS) Based on Age and Residence* Age 65 At least 10 years of legal residence in Canada Other Benefits for Low Income OAS recipients and spouses. Benefits for survivors age 60-64 Based on Income Guaranteed Income Supplement (GIS) - low income seniors  Allowance: Spouse (age 60-64) of the GIS recipient Survivor’s Allowance: Widow(er) age 60 -64   Canada Pension Plan (CPP) Based on Contributions Retirement Benefits Age 60 – Early retirement Partial pension (.6% less for each month before age 65.)  Age 65 – Retirement Full pension Age 70 – (.7% more for each month after 65) Disability Benefits If Contributor becomes disabled. Also benefits for his/her children under age 18 or under 25 if full time student Survivor Benefits For Contributor’s spouse and/or children under age 18 or age 25 if full time student

Your income is guaranteed. How much is the OAS/GIS? If you are 65 years old AND If you have at least 10 years of legal residence in Canada Your income is guaranteed. As of April 2016, the guaranteed income is $1,344.12 (monthly)

How do you come to this amount? The guaranteed income is the sum of the following: Maximum Old Age Security (OAS): $570.52 Maximum Guaranteed Income Supplement (GIS): $773.60 Total OAS/GIS Pension $1,344.12 Guaranteed Income Supplement (GIS) is based on NEED What happens if you have other income, such as CPP, interest, employment, etc. ?

What happens if you have other income? When calculating the GIS amount , the first $3,500 of employment income in a year are exempt. After this amount, for each $1 of income, you lose $0.50 of GIS.

Guaranteed Annual Income Supplement (GAINS – Province of Ontario) If you are eligible for the GIS, you might be eligible for the GAINS. You don’t need to apply. If you are eligible, you receive it. How much? $83 For each $1 of income, you lose $0.50 of GAINS, If your other income is $166, or more, you don’t qualify for GAINS.

Old Age Security Benefit Payment Amounts April – June 2016 Type of benefit Maximum amount Footnote 1 Old Age Security pension Footnote 2 $570.52 Guaranteed Income Supplement (GIS) Single $773.60 Spouse/common law partner of someone who: does not receive an OAS pension receives an OAS pension $512.96 is an Allowance recipient Allowance $1,083.48 Allowance for the Survivor $1,213.00

Canada Pension Plan Payment Amounts How much is the CPP? Canada Pension Plan Payment Amounts Type of benefit Average benefit (January 2016) Maximum amount (2016) Retirement (at age 65) $654.67 $1,092.50 Disability $933.82 $1,290.81 Survivor – younger than 65 $410.94 $593.62 Survivor – 65 and older $339.39 $655.50 Children of disabled contributors $234.87 $237.69 Children of deceased contributors Death (maximum one-time payment) $2,296.85 $2,500.00 Combined benefits Survivor/retirement (retirement at 65) $829.06 Survivor/disability $1,041.57

How much will I receive from CPP? Estimate Request for Canada Pension Plan Retirement Pension PDF, sc-isp-1003(2014-03-03)e.pdf, 1120 KB, printed on 3 pages Application for Statement of Contributions to Canada Pension Plan, PDF, sc-isp-2000(2015-03-12)e.pdf, 1048 KB, printed on 1 page

Changes to the CPP Changes to the Canada Pension Plan (CPP) began in 2011 and will continue to be implemented until 2016. If you started receiving a CPP retirement pension before December 31, 2010, and you remain out of the work force, the changes to the CPP will not affect you.

Resources Canada Pension Plan Old Age Security Open Policy http://www.esdc.gc.ca/en/cpp/index.page Old Age Security http://www.esdc.gc.ca/en/cpp/oas/index.page Open Policy http://openpolicyontario.com/