Why this matters for newcomers
Canada's public pensions are based on how long you've lived and worked in Canada. Because newcomers arrive partway through their working lives, many will receive a smaller public pension than people who were born here. That's not a reason to worry. It's a reason to start your own savings early, even with small amounts.
Canada's two public pensions
Canada Pension Plan (CPP). Contributions are automatically taken from your paycheque when you work. Your pension is based on how much you contributed and for how long.
Old Age Security (OAS). A monthly payment from age 65, based on how many years you've lived in Canada after age 18. You generally need at least 10 years of residence to qualify, and 40 years for the full amount. With fewer years, you receive a partial pension: one-fortieth for each year.
Example: arriving at 35
Someone who arrives at 35 and stays until 65 will have 30 years in Canada, so they'd receive about 30/40, or 75%, of the full OAS pension. Personal savings in a TFSA or RRSP help fill that gap.
Newcomer tip
Canada has social security agreements with more than 50 countries. Time you lived or contributed in one of those countries may help you qualify for OAS sooner, and you may also be able to claim a pension from your home country. Check with Service Canada whether your country has an agreement.
The Guaranteed Income Supplement provides extra monthly support to seniors with low incomes who receive OAS.
Buying your first home
Homeownership is a dream for many newcomer families. The steps that help most are the ones in this guide:
- Build your credit (Module 3), since lenders look closely at your Canadian history.
- Save your down payment in an FHSA (Module 5), and consider the RRSP Home Buyers' Plan later.
- Ask lenders about newcomer mortgage programs, which are designed for people with a short Canadian credit history.
- When you buy, ask about the first-time home buyers' tax credit and any provincial land transfer tax rebates.
Your next small step
Pick one. Do it this week.
- Look up whether your home country has a social security agreement with Canada.
- Pick one long-term goal and give it a name and a separate account.
- Revisit this guide once a year, perhaps when you file your taxes.
Track it on your first-year checklist →
Learn more
Official, free sources. Always check these for the latest amounts before making a decision.
- Canada Pension PlanService Canada
- Old Age SecurityService Canada
- International social security agreementsService Canada
- Guaranteed Income SupplementService Canada
- Buying a homeFinancial Consumer Agency of Canada