The Role of Old Age Security in a Comprehensive Retirement Plan
Old Age Security (OAS) is a government-funded pension program that provides a basic level of income to seniors in Canada.
While OAS is an important part of Canada's retirement income system, it's not intended to provide all the income you'll need in retirement.
Here's a look at the role of OAS in a comprehensive retirement plan.
First, it's important to understand what OAS is and how it works.
OAS is a monthly pension that's available to most seniors who are 65 years of age or older and who have lived in Canada for at least 10 years after the age of 18.
The amount of your OAS pension will depend on how long you've lived in Canada and how much you've earned, and it will be adjusted for inflation.
Next, it's important to understand the limitations of OAS. OAS is intended to provide a basic level of income, so it's not enough on its own to provide a comfortable retirement.
In fact, the maximum OAS pension is currently just over $600 per month, which is not enough to cover the basic expenses of most seniors.
This is why it's important to have a comprehensive retirement plan that includes other sources of income, such as a workplace pension, an RRSP, or other investments.
By combining OAS with other sources of income, you can ensure that you have enough money to maintain your standard of living in retirement.
In conclusion, OAS is an important part of Canada's retirement income system, but it's not intended to provide all the income you'll need in retirement.
To ensure a secure and comfortable retirement, it's important to have a comprehensive retirement plan that includes other sources of income in addition to OAS.