Quote:
Originally Posted by Azure
I think the CPP has mandatory contribution rates across the board regardless of how much money you make.
SS is different.
But I could be wrong.  |
CPP in Canada you pay about 5% on your first 42k of income and your employer matches the amount. If you are self employed you have to pay both halves so about 9% of your first 42k. When you reach retirement age your CPP payout is based on your best 25 years (I think) of contributing to CPP. You get CPP based on the total amount you pay in.
In Canada though there is also Old Age Security (OAS) which is funded by the general government revenue to probide a minimum amount of money regardless of if you have ever worked in your life.