Investment in your retirement
Planning for retirement is essential to ensure financial security and peace of mind. Canadian pension plans are designed to provide retirees with a stable source of income during their golden years. These plans offer a variety of options for individuals to save and invest their hard-earned money, aiming to secure a comfortable retirement.
Pension plans for a secure future
Canadian pension plans come in different forms, including the Canada Pension Plan (CPP) and the Old Age Security (OAS) pension. The CPP is a mandatory plan that deducts contributions directly from your paycheck, while the OAS is available to all Canadian citizens upon reaching a certain age. These plans provide a foundation for retirement savings, ensuring a steady income stream once you’re no longer in the workforce.
The benefits of pension plans
One of the main advantages of Canadian pension plans is the guarantee of income in retirement. With these plans, you can rest assured that you’ll have a steady stream of money to cover your expenses and maintain the lifestyle you desire. Additionally, pension plans offer tax advantages, allowing you to reduce your tax liability and maximize your savings. Whether through employer-sponsored plans or individual retirement savings accounts, Canadian pension plans provide opportunities for long-term financial stability.
Understanding Canada’s Retirement Income System
Canada’s retirement income system is designed to provide individuals with benefits, security, and income during their retirement years. The system includes various investment plans and savings options, such as Canadian pension plans, to help individuals prepare for a financially secure future.
Canadian pension plans are a key component of the retirement income system. These plans, which include the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP), provide eligible individuals with a regular income in retirement. Contributions to these plans are made throughout a person’s working years, and the amount of the pension benefit is based on factors such as the individual’s earnings history and the number of years they contributed to the plan.
In addition to pension plans, Canada’s retirement income system also includes other savings options to help individuals build nest eggs for their retirement. These options may include registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), and employer-sponsored pension plans. These investment vehicles allow individuals to save and invest money for their retirement while benefiting from tax advantages and potential growth over time.
One of the main goals of Canada’s retirement income system is to ensure that individuals have a secure and reliable income during their retirement years. The system provides a combination of public and private retirement benefits to help individuals meet their financial needs once they stop working. This includes not only pension benefits but also government programs such as Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) for low-income seniors.
Understanding Canada’s retirement income system is crucial for individuals who want to plan for their financial future. By taking advantage of pension plans, savings options, and government programs, Canadians can work towards a comfortable and financially secure retirement.
Types of Canadian Pension Plans
When it comes to saving for retirement, Canadian residents have a variety of pension plans to choose from. These plans offer different benefits and investment options to help individuals secure a stable income during their retirement years.
One type of Canadian pension plan is the Canada Pension Plan (CPP). This plan is a government-sponsored program that provides retirement benefits to eligible individuals. The CPP is funded through contributions made by both employees and employers, and the amount of benefits received is based on the individual’s earnings history and the number of years they have contributed to the plan.
Another popular pension plan in Canada is the Registered Retirement Savings Plan (RRSP). This plan allows individuals to contribute a portion of their income to a retirement savings account on a tax-deferred basis. The funds invested in an RRSP can be used to purchase a variety of investment options, such as stocks, bonds, and mutual funds, to help grow the account’s value over time.
For individuals who are self-employed or do not have access to a pension plan through their employer, the Tax-Free Savings Account (TFSA) is another option to consider. The TFSA allows individuals to save and invest money on a tax-free basis, making it a flexible and convenient way to save for retirement.
In addition to these pension plans, employer-sponsored pension plans, such as the Registered Pension Plan (RPP), are common in Canada. These plans are set up by employers and provide retirement income based on the individual’s years of service and salary. Employers may contribute a portion of the funds to the plan, making it an attractive option for employees.
Overall, there are a variety of Canadian pension plans available to help individuals save and invest for retirement. Each plan offers its own set of benefits and features, so it is important to carefully consider your options and choose the plan that best suits your financial goals and needs.
Eligibility for Canadian Pension Plans
In Canada, the pension system is designed to provide financial security to retirees by offering various benefits and income streams. Canadian pension plans are a key component of retirement planning and can supplement personal savings and investments.
There are several types of Canadian pension plans, including the Canada Pension Plan (CPP) and the Old Age Security (OAS) program. To be eligible for these plans, individuals must meet certain requirements.
For the CPP, contributors must have made sufficient contributions to the plan during their working years. The amount of contributions needed varies depending on the individual’s earnings and the number of years they contributed. Generally, individuals must have made at least one valid contribution to the CPP to be eligible for benefits.
On the other hand, the OAS program is available to most Canadian residents who have reached the age of 65, regardless of their employment history. However, individuals must have resided in Canada for a certain number of years to qualify for full benefits. The number of required years of residency can vary depending on factors such as the date of birth.
In addition to the CPP and OAS, there are other pension plans and savings options available in Canada. These include employer-sponsored pension plans, registered retirement savings plans (RRSPs), and tax-free savings accounts (TFSAs).
Employer-sponsored pension plans are set up by employers to provide retirement income to their employees. Participation in these plans is typically optional, and eligibility criteria can vary across different companies.
RRSPs and TFSAs are personal savings and investment vehicles that individuals can use to save for retirement. Contributions made to these plans receive tax benefits, and the funds can be invested in various financial instruments to potentially grow over time.
In conclusion, Canadian pension plans play a vital role in providing financial security during retirement. Eligibility for these plans can depend on factors such as contributions, age, and residency. Understanding the requirements and options available can help individuals pave the way for a comfortable retirement.
Contribution Requirements for Canadian Pension Plans
A Canadian pension plan provides security and peace of mind for individuals looking to invest in their retirement income. In order to receive the full benefits of a Canadian pension plan, contributions are required. These contributions are important in building the savings needed for a comfortable retirement.
There are two main types of Canadian pension plans: the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP). Both plans require eligible individuals to contribute a percentage of their income towards their retirement savings.
The contribution requirements for the CPP and the QPP are based on the individual’s earnings and are subject to an annual maximum. In 2021, the maximum pensionable earnings for the CPP and the QPP are $61,600 and $61,600 respectively. This means that individuals who earn more than this amount will not be required to contribute to the plans on the additional income.
The contribution rate for the CPP and the QPP is set at 5.45% for employees and 9.9% for self-employed individuals. The contribution rate is applied to the individual’s pensionable earnings, up to the maximum annual limit.
It’s important to note that contributions to the CPP and the QPP are not voluntary. Employers are required by law to withhold the employee’s contribution from their wages, while self-employed individuals must make their own contributions on a regular basis.
Contributions to Canadian pension plans are an investment in one’s future retirement income. By contributing to these plans, individuals are building a secure financial foundation for their retirement years. It’s never too early to start saving, and the Canadian pension plans provide a reliable and trustworthy option for individuals looking to secure their financial future.
Benefits and Payments from Canadian Pension Plans
Canadian pension plans provide important benefits and financial security for retirees. These plans are designed to help Canadians save and invest for their retirement, ensuring a comfortable and stable income during their later years.
Pension Benefits
One of the main benefits of Canadian pension plans is the regular income they provide in retirement. Depending on the type of plan, retirees may receive a fixed monthly payment or a variable payment based on their contributions and investment returns. This ensures a reliable income stream throughout retirement, helping to cover living expenses and maintain a high standard of living.
Most Canadian pension plans also offer survivor benefits, providing financial support to a spouse or dependent in the event of the pensioner’s death. This adds an additional layer of security and ensures that loved ones are taken care of even after the pensioner passes away.
Investment and Savings
Canadian pension plans are often designed to invest contributions, allowing them to grow over time. These investments are managed by professionals, ensuring that the pension plan can generate solid returns while minimizing risk. This means that retirement savings can grow over time, providing a larger income in retirement.
In addition to providing a source of income in retirement, Canadian pension plans also encourage savings and financial discipline. By contributing a portion of their income towards their pension plan, Canadians are able to build a nest egg for their retirement years. This helps individuals take control of their financial future and ensures that they have enough savings to sustain themselves through retirement.
Conclusion
Canadian pension plans offer a range of benefits and payment options for retirees. They provide a reliable source of income during retirement and include survivor benefits to support loved ones. In addition, these plans encourage savings and investment, helping individuals build a secure financial future. Whether through fixed payments or variable income based on investments, Canadian pension plans play a crucial role in ensuring financial security in retirement.
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a government-administered pension plan that provides income and security in retirement. It is one of the main retirement saving plans available to Canadians.
CPP is funded through a combination of contributions from employees, employers, and self-employed individuals. The amount of pension benefit you receive when you retire depends on how much you have contributed throughout your working years.
Contributions to CPP are deducted from your earnings and are based on a percentage of your income, up to a specific annual maximum. These contributions are then invested by the Canada Pension Plan Investment Board (CPPIB), which manages the CPP’s assets.
The CPP provides a range of benefits, including retirement pensions, disability pensions, survivor benefits, and children’s benefits. The retirement pension provides a monthly income to eligible individuals who have reached the age of 65 and have contributed to CPP.
In addition to the retirement pension, CPP also provides a post-retirement benefit, which allows recipients to continue making contributions to CPP and receive additional benefits.
Overall, the Canada Pension Plan plays a crucial role in providing Canadians with a reliable source of retirement income and financial security. It is important to understand the benefits and rules of the CPP in order to make informed decisions about your pension planning and saving for the future.
Old Age Security (OAS) Pension
The Old Age Security (OAS) Pension is one of the retirement income plans available to Canadians. It is a monthly payment that provides financial support to Canadian seniors who are 65 years or older and have lived in Canada for at least 10 years after the age of 18.
Eligibility:
To be eligible for the OAS Pension, you must meet the following criteria:
- You must be 65 years or older.
- You must be a Canadian citizen or a legal resident of Canada.
- You must have resided in Canada for at least 10 years after the age of 18.
Benefits:
Once eligible, you can receive a monthly OAS Pension payment. The amount you receive depends on you:
- The number of years you have lived in Canada after the age of 18
- Your income level
- Your marital status
- Any other pensions or benefits you may be receiving
Planning for the OAS Pension:
The OAS Pension is a government-supported plan that provides a steady stream of income during retirement. It is important to consider this income when planning for your retirement. You may also want to think about how the OAS Pension fits into your overall retirement savings and investment strategy.
Conclusion
The Old Age Security (OAS) Pension is a valuable resource for Canadian seniors. It provides financial support and a stable income during retirement. To ensure you receive your benefits, it is important to meet the eligibility criteria and plan accordingly. Consider your overall retirement goals, savings, and investment plans as you navigate the Canadian pension system.
Quebec Pension Plan (QPP)
The Quebec Pension Plan (QPP) is a government-run pension plan in the province of Quebec, Canada. It is designed to provide financial assistance and income support to retired individuals and their families.
Benefits
The QPP offers various benefits to eligible individuals. These benefits include:
- Pension Payments: The QPP provides a monthly pension payment to eligible individuals who have contributed to the plan during their working years. The amount of the pension is based on the individual’s average earnings and years of contribution.
- Survivor Benefits: In the event of the death of a QPP contributor, survivor benefits may be available to their spouse or common-law partner and dependent children.
- Disability Benefits: The QPP offers financial support to individuals who become disabled and are unable to work. Disability benefits are available to eligible individuals under certain conditions.
- Death Benefits: A lump-sum death benefit may be paid to the estate or the person responsible for the funeral expenses of a deceased QPP contributor.
Investment and Savings
The funds collected through contributions to the QPP are invested to generate returns and ensure the sustainability of the plan. The contributions made by employees and employers are pooled together and managed by the Caisse de dépôt et placement du Québec, which is responsible for investing the funds.
Contributions to the QPP are based on a percentage of an employee’s earnings, up to a yearly maximum. These contributions are deducted from an individual’s salary or wages and are matched by the employer.
Retirement Income
When an individual reaches the age of eligibility for retirement benefits, they can start receiving pension payments from the QPP. The amount of the pension is determined by the individual’s average earnings and years of contribution to the plan. It is important for individuals to plan and save for retirement to ensure a comfortable income during their later years.
The QPP works in conjunction with the Canada Pension Plan (CPP), providing additional retirement income to eligible individuals.
In conclusion, the Quebec Pension Plan (QPP) is a valuable resource for Canadians, providing retirement income and financial support to individuals and their families. By contributing to the QPP and planning for retirement, Canadians can ensure a secure and comfortable future.
Registered Retirement Savings Plans (RRSP)
Registered Retirement Savings Plans (RRSP) are a popular type of pension plan in Canada. These plans provide security and benefits for individuals looking to save for their retirement.
RRSPs are tax-sheltered savings accounts designed to encourage Canadians to save for retirement. Contributions to an RRSP are tax deductible, meaning that individuals can deduct the amount they contribute from their taxable income. The income earned within the RRSP is also tax sheltered, allowing for potential growth and investment opportunities.
One of the main advantages of RRSPs is their flexibility. They offer a wide range of investment options, including stocks, bonds, mutual funds, and more. This allows individuals to choose investments that align with their risk tolerance and financial goals.
RRSPs also provide a source of income in retirement. When individuals reach the age of 71, they must convert their RRSP into a Registered Retirement Income Fund (RRIF) or purchase an annuity. These options provide a regular income stream based on the funds accumulated in the RRSP.
Contribution Limits
There are limits on how much individuals can contribute to their RRSP each year. The contribution limit is calculated as a percentage of an individual’s previous year’s earned income, up to a maximum amount set by the government. Contributions made in excess of the limit may be subject to penalties and taxes.
Withdrawals
While RRSPs are primarily intended for retirement savings, there are certain circumstances where individuals can withdraw funds from their RRSP before retirement. These include the Home Buyers’ Plan, which allows individuals to withdraw funds to purchase a first home, and the Lifelong Learning Plan, which allows individuals to withdraw funds for education and training purposes.
In conclusion, Registered Retirement Savings Plans (RRSP) offer Canadians a way to save for retirement while benefiting from tax advantages and investment opportunities. They provide security and potential income in retirement, making them a valuable tool for long-term financial planning.
Taxation of Canadian Pension Plan Benefits
As you plan for your retirement, understanding the taxation of Canadian pension plan benefits is essential. The Canadian pension system is designed to provide income security for retirees, but it’s important to be aware of how these benefits are taxed.
1. Canada Pension Plan (CPP): The CPP is a contributory plan that provides retirement benefits to eligible individuals. The benefits received from CPP are taxable income and are included in your annual tax return. The amount you receive is based on your contributions during your working years.
2. Old Age Security (OAS): The OAS program provides a basic pension to Canadian seniors. The OAS benefits are also taxable income and must be reported on your tax return. The amount you receive depends on your residency status and the number of years you have lived in Canada.
3. Registered Retirement Savings Plans (RRSPs): RRSPs are a popular retirement savings vehicle in Canada. Contributions to an RRSP are tax-deductible, but withdrawals are treated as taxable income. When you retire and start receiving income from your RRSP, these withdrawals are added to your taxable income.
4. Registered Pension Plans (RPPs): RPPs are employer-sponsored pension plans that provide retirement benefits to employees. Similar to RRSPs, withdrawals from RPPs are considered taxable income in the year they are received.
5. Tax-Free Savings Accounts (TFSAs): TFSAs are a tax-advantaged savings vehicle in Canada. Contributions to a TFSA are not tax-deductible, and any income or growth generated within the account is tax-free. When you retire and start withdrawing funds from your TFSA, these withdrawals are tax-free.
It’s important to consult with a tax professional to fully understand the taxation of your Canadian pension plan benefits. They can help you optimize your retirement income and minimize your tax liability.
Understanding Canadian Pension Plan Statements
When it comes to planning for retirement, understanding your Canadian pension plan statements is essential. These statements provide you with important information about your investment, income, and security in retirement.
Types of Canadian Pension Plans
There are several types of pension plans in Canada, including the Canada Pension Plan (CPP), Old Age Security (OAS), and employer-sponsored pension plans. Each plan has its own set of rules and benefits, so it’s important to understand the specific details of your plan.
Key Information in Pension Plan Statements
Pension plan statements typically include information on your contributions, earnings, and projected retirement benefits. They can also provide details on your eligibility for other government benefits, such as the Guaranteed Income Supplement (GIS).
Here are some key pieces of information you can find in your pension plan statements:
| Investment | Income | Security |
|---|---|---|
| Details about where your contributions are being invested | Information on your projected income in retirement | Guaranteed, steady income during your retirement years |
| Expected rate of return on your investments | Breakdown of your pension income from different sources | Pension plan administrator ensures the security of your funds |
| Options for adjusting your investment strategy, if applicable | Details on any other sources of income you may have in retirement | Protection against inflation and market volatility |
By carefully reviewing your pension plan statements, you can gain a better understanding of your retirement savings and make informed decisions about your future financial stability.
It’s important to note that the information provided in pension plan statements is subject to change and may not reflect any recent updates or adjustments. It’s always a good idea to consult with a financial advisor or pension plan specialist for personalized advice.
Factors to Consider When Choosing a Canadian Pension Plan
When it comes to retirement savings, Canadian pension plans offer a level of security and stability that is hard to beat. However, choosing the right plan for your needs requires careful consideration of several factors.
Type of Pension Plan: There are different types of Canadian pension plans, including the Canada Pension Plan (CPP), the Quebec Pension Plan (QPP), and employer-sponsored plans. Each type has its own eligibility requirements and benefits, so it’s important to understand which plan suits your needs best.
Investment Options: Some pension plans allow you to choose how your contributions are invested, while others have a predefined investment strategy. Consider your risk tolerance and investment goals when deciding which plan offers the best investment options for you.
Contribution Rates: Canadian pension plans have different contribution rates, and it’s important to understand how much you’ll need to contribute and if you can afford it. Consider your current financial situation and future income projections when determining the contribution rate that works for you.
Retirement Benefits: Consider the retirement benefits offered by each pension plan, such as the monthly income you can expect to receive and any additional benefits, such as survivor benefits or inflation protection. Compare the benefits offered by different plans to ensure they align with your retirement goals.
Portability: If you anticipate changing jobs or moving between provinces, consider the portability of the pension plan. Some plans allow you to transfer your pension credits, while others may impose restrictions or penalties.
Additional Features: Some Canadian pension plans offer additional features, such as disability benefits or early retirement options. Consider these additional features and determine if they align with your long-term financial goals.
Professional Advice: Considering the complexity of pension plans, it’s wise to seek professional advice from a financial planner or pension specialist. They can help you navigate the different options available and make an informed decision based on your individual circumstances.
Choosing a Canadian pension plan is an important decision that will have a significant impact on your retirement security. By carefully considering these factors, you can select a plan that meets your needs and provides you with the peace of mind and financial stability you deserve.
Recent Changes to Canadian Pension Plans
Canadian pension plans are constantly evolving to respond to the changing needs and demographics of the population. Recent changes have focused on improving the retirement income security and financial well-being of Canadians.
One significant change is the gradual increase in the eligibility age for the Canadian Pension Plan (CPP) and Old Age Security (OAS) benefits. The eligibility age for CPP benefits has been gradually increasing from 65 to 67, with the aim of aligning with the average life expectancy and the ability of individuals to work longer. This change ensures that the CPP can remain sustainable and provide adequate income for retirees.
Another change is the introduction of new investment options in pension plans. Canadians now have the opportunity to invest their retirement savings in a wider range of assets, including infrastructure, private equity, and real estate. These alternative investments can offer higher potential returns and diversification, but also come with increased risk. It is important for individuals to understand their risk tolerance and seek professional advice when making investment decisions.
Moreover, the government has also taken steps to enhance the Canada Pension Plan (CPP) by expanding the benefits provided. These changes include increasing the maximum CPP retirement benefit by 50%, providing a larger pension for those who contribute over a longer period. Additionally, the CPP survivor’s pension has been increased to provide more financial security for spouses and dependents of deceased contributors.
Furthermore, recent changes have focused on improving the accessibility and flexibility of pension plans. The introduction of the new Canada Emergency Wage Subsidy (CEWS) allows employers to continue providing pension contributions for their employees during periods of reduced hours or temporary layoffs. This ensures that individuals do not miss out on valuable pension contributions during challenging times.
In conclusion, recent changes to Canadian pension plans have aimed to enhance the retirement income security and benefits for Canadians. These changes include increasing the eligibility age, expanding investment options, improving CPP benefits, and enhancing the accessibility and flexibility of pension plans. It is important for individuals to stay informed about these changes and make informed decisions about their retirement planning to ensure a financially secure future.
Overseas Pension Transfers and Canadian Pension Plans
Retirement income security is a top priority for individuals seeking financial stability in their golden years. Canadian pension plans play a crucial role in providing retirement benefits, savings, and investment options to Canadians. However, what happens if you have an overseas pension and are considering transferring it to a Canadian pension plan?
Transferring an overseas pension to a Canadian pension plan is possible, but the process can be complex and requires careful consideration. It is important to understand the benefits and drawbacks of such a transfer to make an informed decision.
One major benefit of transferring an overseas pension to a Canadian pension plan is the potential for increased retirement income and security. Canadian pension plans typically offer a wider range of investment options and often provide more favorable tax treatment than overseas pensions. This can result in higher returns on your investment and a more stable income during retirement.
However, it is important to note that not all overseas pension plans are eligible for transfer to a Canadian pension plan. Each country has different rules and regulations surrounding pension transfers, and not all plans will meet the requirements for transferability. It is essential to consult with financial advisors and the specific pension plans involved to ensure eligibility and evaluate the potential benefits and risks.
Furthermore, transferring an overseas pension to a Canadian pension plan may result in the loss of certain benefits or rights associated with the original plan. For example, if the overseas pension includes a guaranteed minimum income, transferring it to a Canadian pension plan may forfeit that guarantee. It is crucial to carefully review the terms and conditions of each pension plan before proceeding with a transfer.
In conclusion, transferring an overseas pension to a Canadian pension plan can provide individuals with increased retirement income and security. However, it is a complex process that requires careful consideration and consultation with financial advisors. Understanding the benefits, drawbacks, and eligibility requirements is essential to make an informed decision and ensure the best possible outcome for your retirement savings.
Frequently Asked Questions About Canadian Pension Plans
What is a Canadian pension plan?
A Canadian pension plan is a government-sponsored security program that provides retirement income to eligible individuals. It is designed to supplement personal savings and investments to ensure a comfortable retirement.
What types of pension plans are available in Canada?
There are several types of pension plans available in Canada, including:
| Plan Type | Description |
|---|---|
| Canada Pension Plan (CPP) | A mandatory plan that provides retirement, disability, and survivor benefits to eligible contributors. |
| Old Age Security (OAS) | A basic pension plan that provides monthly payments to individuals aged 65 and older who meet certain residency requirements. |
| Employer-Sponsored Pension Plans | Private pension plans offered by employers to their employees to help them save for retirement. |
| Registered Retirement Savings Plans (RRSPs) | Individual savings plans that allow individuals to save for retirement on a tax-deferred basis. |
What are the benefits of Canadian pension plans?
Canadian pension plans provide several benefits, including:
- Security: Pension plans ensure individuals have a reliable source of income in retirement.
- Income Supplement: Pension plans supplement personal savings and investments to maintain a comfortable lifestyle in retirement.
- Tax Advantages: Contributions to certain pension plans, such as RRSPs, can be deducted from taxable income.
- Government Support: Government-sponsored pension plans, like CPP and OAS, provide additional support to eligible individuals.
Are Canadian pension plans a good investment?
Canadian pension plans can be a good investment option for retirement savings. They provide a secure and reliable source of income, and certain plans offer tax advantages for contributions. However, it is important to consider individual financial goals and consult a financial advisor to determine the most suitable investment strategy.
Q&A:
When can I start receiving my Canadian pension?
You can start receiving your Canadian pension as early as age 60, but the amount you receive will be lower than if you wait until your full retirement age, which is between 65 and 67, depending on the year you were born.
How much will I receive from my Canadian pension?
The amount you will receive from your Canadian pension depends on various factors, including your average lifetime earnings, the number of years you have contributed to the Canada Pension Plan, and the age at which you start receiving benefits. The maximum monthly amount for 2021 is $1,203.75.
Can I contribute to my Canadian pension while living abroad?
If you are living abroad, you can continue to contribute to your Canadian pension as long as you are still earning income from Canadian sources and are under the age of 70. However, your contributions may be subject to certain restrictions and limitations depending on the country you are residing in.
What happens to my Canadian pension if I die?
If you die before you start receiving your Canadian pension, your eligible survivors may be entitled to receive survivor benefits. If you die after you start receiving your pension, your eligible spouse or common-law partner may be entitled to receive survivor benefits based on a percentage of your retirement pension.
Can I receive my Canadian pension while still working?
Yes, you can receive your Canadian pension while still working. However, if you are under the age of 65 and continue to work, you will be required to contribute a portion of your earnings to the Canada Pension Plan. Once you reach the age of 65, you can continue working without making additional contributions.