The world of retirement planning is constantly evolving, and the latest changes to pension laws are no exception. As a retiree or someone who is planning for retirement, it is important to stay informed about these updates and how they may affect your future plans. In this article, we will discuss the new pension laws and provide you with the necessary information to navigate through them with ease.
The first thing you need to know about the recent changes to pension laws is that they were implemented to increase the retirement security of Canadians. The most notable change is the introduction of the Canada Pension Plan (CPP) enhancement, which will gradually increase the amount of retirement income that individuals can receive. This means that when you retire, you will be able to receive a higher monthly pension from the CPP. Furthermore, the maximum earnings limit for the CPP will also increase, allowing individuals to contribute more towards their retirement savings.
Another important change to note is the increase in the age at which individuals can receive their Old Age Security (OAS) pension. The age will gradually increase from 65 to 67 starting in 2023, affecting those born after 1958. This means that if you were born after 1958, you will need to plan for an additional two years of retirement before being eligible for OAS. It is also important to note that for those who are already receiving O