Retirement planning is a crucial part of financial management, and pension is one of the most common ways Canadians save for their golden years. Pension in Canada refers to a retirement income plan provided by the government or an employer, and it is designed to supplement the Canada Pension Plan (CPP) and Old Age Security (OAS). Canadians who contribute to a pension plan can rely on it to provide a steady stream of income during their retirement, reducing their financial burden and allowing them to enjoy their golden years with peace of mind.

There are two main types of pension plans in Canada – Defined Benefit (DB) and Defined Contribution (DC) plans. A DB plan guarantees a predetermined amount of pension to the retired individual, usually based on their salary, years of service, and age at retirement. On the other hand, a DC plan allows individuals to contribute a portion of their salary into a pension fund and invest it to grow their retirement savings over time. The amount received during retirement depends on the investment performance of the fund. It is important for Canadians to understand the type of pension plan they have and how it works to effectively plan their retirement.

While pension plans in Canada provide a stable source of income during retirement, it is crucial to have a well-diversified retirement plan that includes other savings and investments. This will ensure a comfortable lifestyle during golden years and provide a safety net in case