Canadian Pension System

Canadian retirement is usually described as a three-pillar system. Pillar 1 is residence-based OAS, Pillar 2 is contribution-based CPP/QPP, Pillar 3 is your own savings — RRSP, TFSA, and workplace pensions. The biggest contrast with Korea's National Pension is that OAS exists separately, paid based on residence alone. A senior who barely worked in Canada can still receive part of OAS if they meet the residency rule.

Pillar 1: OAS (Old Age Security) — residence-based

• Eligibility: generally age 65+, citizen or PR, with a minimum number of years lived in Canada after age 18 (10 years if applying from within Canada, 20 if applying from abroad).
• Amount: full pension after 40 years of residence; pro-rated below that. Auto-increase of about 10% from age 75.
• GIS (Guaranteed Income Supplement) — non-taxable top-up for low-income OAS recipients, set automatically each year from your tax return.
• High-income clawback: above an income threshold, OAS is partly recovered as a "recovery tax."

Pillar 2: CPP / QPP — contribution-based

• Enrolment: mandatory for workers and self-employed aged 18–70 with earnings above the minimum threshold. Quebec residents enrol in QPP instead of CPP.
• Contributions: split equally between employee and employer; self-employed pay both halves. Charged up to YMPE / YAMPE earnings caps.
• Start: standard age is 65; early claim from 60 (with reduction) or delayed claim to 70 (with increase) are both available.
• Disability and survivor benefits: separate payments if you become disabled or pass away while contributing.
• CPP enhancement: since 2019, contributions and benefits have been gradually increasing, so two people the same age can receive different amounts depending on when they contributed.

Pillar 3: personal savings — RRSP, TFSA, workplace pensions

• RRSP (Registered Retirement Savings Plan) — contributions deductible from income, withdrawals taxed. Roughly the equivalent of a Korean tax-deferred pension savings account.
• TFSA (Tax-Free Savings Account) — contributions are after-tax, growth and withdrawals are tax-free. Annual room accumulates.
• Workplace pension (RPP) — DB or DC, often with employer match.

What Korean nationals should pay attention to

• Under the Canada–Korea social security treaty (in force 1999), Korean National Pension contributions can be combined with Canadian CPP, so leaving before reaching the minimum on either side doesn't lose your entitlement.
• OAS is residence-based, so Korean contribution years cannot substitute. Only actual residence in Canada counts.
• Pensions paid out of Canada to Korea may be subject to Canadian withholding under the Canada–Korea tax treaty; the foreign tax credit then reconciles in Korea.
• You must apply — it's not automatic. Apply through Service Canada before age 65 for OAS and CPP; some are auto-enrolled, but if you don't get the confirmation letter, apply yourself.

Official guidance: Canada.ca: Pensions and retirement, Retraite Québec (QPP)