Are you age 18 or over and working part-time? Surprise: you are probably contributing to the Québec Pension Plan (QPP). Even odd jobs can help you save for retirement!
The
QPP starts young
No need for a large salary to contribute. If you earn more than $3500 during the year, you contribute automatically to the
QPP. Contributing is mandatory as soon as your salary reaches that threshold. Whether you work as a barista, a paper carrier, a first-aid attendant or a seasonal employee, your contributions build your future retirement pension.
Why contribute at such a young age?
Because starting early, even with small amounts, means investing in your long-term financial security.
The
QPP is not just for retirement. It also protects you in the event of disability and ensures an income to your family if you die.
An automatic and shared contribution
No paperwork to complete, no alarms to activate: contributions are deducted automatically from your pay. More good news: your employer contributes as well, and just as much as you. It is like a two-for-one deal.
Continuing to work... in retirement
Are you done with your full-time career and are now working a little, just to stay in action? Here is what you need to know:
- Before age 65, you must continue to contribute to the
QPP is you have employment earnings.
- As of age 65, you can stop contributing... or continue. It is your choice!
If you continue contributing, each additional contribution increases the amount of your pension. In addition, years when your income is lower than others may be excluded from the calculation of your pension.
A solid foundation for your future
Remember: the pension under the
QPP is a solid foundation for your future, to which you should add other sources of income to have a comfortable retirement. It is therefore essential that you also set aside some personal savings.
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