The “Government Benefits Will Cover Me” Myth - Why CPP and OAS Aren’t Enough

Some Canadians assume that government programs like the Canada Pension Plan (CPP) and Old Age Security (OAS) will cover their retirement needs. While these programs provide important support, they were never designed to fund retirement alone.

Pros:

• Guaranteed, inflation-indexed income

• Predictable payments for life

• Accessible to most Canadians who worked and contributed

Cons:

• CPP maximum payout in 2025: ~$16,000/year (if you qualify fully)

• OAS maximum payout: ~$8,500/year

• Combined, that’s only ~$24,500 — before taxes

• Doesn’t account for housing, travel, healthcare, or unexpected costs

For single retirees or couples without additional savings, this can lead to a sharp reduction in lifestyle or even financial insecurity. The risk increases with rising healthcare costs and inflation.

A financial advisor can help:

• Supplement government income with investment income, annuities, or pensions

• Optimize when to start CPP/OAS for maximum value

• Build a budget that balances government support with personal assets

Government programs are a foundation — not a full plan.

Retirement Planning

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