The number of years you work in Canada is not the only factor to determine your qualification to receive CPP benefit. Checkout what parameters contribute towards making you eligible for the Canada Pension Plan.
Canada Pension Plan (CPP)
The residents of Canada generally contribute to the Canadian Pension Plan (CPP), while they are young. These contributions are tax deductible. The federal government in turn gives their money back during their retirement phase which is after their 60 years of age. The benefit that you receive from CPP is taxable.
How many years do you have to work in Canada to get a pension?
The qualification to receive CPP benefit is based on your age – you must be 60 years or older and you must have made at least one contribution.
Those who are self-employed or work for an organization, contribute a portion of their salary into the CPP. You can also contribute the sum you receive from your spouse or partner in law during your separation or divorce. The number of years you work in Canada is not a deciding factor to receive CPP benefits.
Having said that, if you wish to receive the maximum benefit from CPP, then you have to plan well in advance.
Imagine you start working once you turn a major, i.e., 18 years of age and retire during the average Canadian retirement age, i.e., 64.5 years of age. You would have been in the employment workforce for 47 years. You must have contributed the maximum contribution cap set by the Canadian Revenue Agency for 39 years out of 47 years.
Thus, the time span that you are a part of the Canadian employment workforce doesn’t matter for you to receive CPP benefits. It rather depends on how much you have contributed, how long you have contributed and your average earnings.
Working in Canada and Getting Pension
Thus, the number of years you work in Canada does not affect your Canada Pension Plan or CPP benefit directly. The key is that the longer you work, the better you will be able to contribute and your average earnings income will be higher than those who work for a short span of time. This will in turn maximize the benefit you receive.
You can continue to work and still receive CPP benefits simultaneously. This is possible via post retirement benefits that will help maximize the replacement income that you are entitled to receive. Your CPP contribution generally stops at age 70, even if you continue to work.