• The CPP is the core of Canada's social safety net.o' canada image by Kathryn Palmer from Fotolia.com
  
  Introduced in 1966 by the federal government, the Canada Pension Plan (CPP) provides retirement income benefits to all Canadians when they reach the age of 65. The CPP retirement pension forms the core of Canada's social safety net and aims to replace about 25 percent of a person's earnings from employment up to a maximum amount. For 2010, the maximum CPP pension is $934.17 per month.
  
  

Indexation

• The CPP Pension is adjusted to increases in the Consumer Price Index (CPI) in January of each year.
  
  

Early Payment Option

• The CPP pension can replace up to 25 percent of your employment earningsretirement worries image by Jale Evsen Duran from Fotolia.com
  
  You can request to have your CPP pension begin as early as the month following your 60th birthday, as long as you have stopped working. Although the pension amount is reduced by 0.5 percent for each month below age 65, the benefit of receiving the pension earlier can outweigh the reduction for people facing financial hardship or who are of below average health.
  
  

Option to Delay Past Age 65

• If you are still working, or do not need the income, you can elect to delay the start of your CPP pension. The monthly benefit is increased by 0.5 percent for each month above age 65 for which you delay the start of your CPP pension. The maximum increase is capped at 30 percent, which is equivalent to delaying the start of the pension until age 70.
  
  

Lifetime Income

• Once you begin receiving the CPP pension, your benefits continue until you die.
  
  

Pension Sharing

• Spouses or common-law partners who are both age 60 or over can elect to have their CPP pensions split evenly between them in order to save taxes. This is especially beneficial when one spouse has contributed significantly more into the plan and stands to receive a higher CPP pension.
  
  

Living Outside of Canada

• The CPP pension payment can be made anywhere in the world. No Canadian residency requirements exist for people receiving the CPP pension.
  
  

Survivor's Pension

• The spouse or common-law partner of a CPP pensioner who dies is eligible to receive a survivor's pension, even if she is currently receiving her own CPP pension. The CPP pension and survivor's pension will be combined into one single amount, and even though it cannot exceed the maximum allowable CPP pension for one individual, the survivor's pension can greatly increase the amount of retirement income a person can receive following the death of a spouse or common-law partner.
  
  

Other Pension Benefits Available

• The Canada Pension Plan also provides retired Canadians with additional income sources such as the Old Age Security (OAS) pension, which begins at age 65. Depending on income levels, retired Canadians can also qualify for the Guaranteed Income Supplement (GIS).