The purpose of Canada’s retirement income system is twofold: to alleviate poverty among seniors and to help seniors who are better off to avoid significant declines in living standards when they retire. This HillStudy outlines the different components of the system, who they target, how much they cost and how they are financed. Canada's retirement income system is typically described as having three pillars. The first pillar provides benefits based on age and years of residence in Canada. It includes the Old Age Security (OAS) pension, the Guaranteed Income Supplement (GIS), the Allowance and the Age Credit. The second pillar consists of mandatory earnings-related programs: the Canada Pension Plan (CPP) and, in Quebec, the Quebec Pension Plan (QPP). The third pillar is composed of workplace registered pension plans (RPPS) and private savings (RRSPs) and Tax-Free Savings Accounts (TFSAs).
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