Medical and Dental Programs for Retirees in Canada

When you’re working, it’s easy to take health and dental benefits for granted, I know I did. But when you retire, one of the biggest surprises can be realizing just how much those workplace plans used to cover, and how much you may need to pay out-of-pocket now.

If you’re planning your retirement, or already retired, understanding your healthcare options isn’t just smart, it’s essential.

What Is Covered by Government Programs?

In Canada, we’re fortunate to have publicly funded healthcare. The provincial and territorial health plans (like BC MSP or Ontario Health Insurance Plan) cover most medically necessary hospital and physician services. But they do not cover:

·         Most prescription drugs (outside of hospitals)

·         Dental care

·         Vision care (eye exams and glasses)

·         Hearing aids

·         Physiotherapy

·         Private or semi-private hospital rooms

·         Ambulance services in some provinces

What About Prescription Drug Coverage?

Thankfully, there are public drug programs for seniors. These vary by province, but here are a few examples:

·         BC Fair Pharmacare: Deductible and co-payment model based on income; applies to residents over 65.

·         Ontario Drug Benefit (ODB): Available at age 65, it covers over 5,000 prescription drugs.

·         Alberta Coverage for Seniors: Covers prescriptions and other health-related services at reduced cost.

Tip: Contact your province’s Ministry of Health or search “[Your Province] drug coverage for seniors” to find out exactly what’s available.

Dental and Vision: Often Overlooked, Always Important

Government coverage for dental and vision care is extremely limited for most seniors. If your teeth and eyes are important to your quality of life (and they are!), you’ll likely want to budget for private care, or consider a retiree health benefits plan that includes these services.

Some provinces are beginning to expand dental programs for lower-income seniors, such as:

·         Ontario Seniors Dental Care Program (for those 65+ with low income)

·         Alberta Dental Assistance for Seniors Program

·         Quebec's RAMQ dental coverage (very limited)

Private Health and Dental Plans for Retirees

Some employers offer retiree benefits, but they are becoming rarer. If you don’t have one, consider buying individual health and dental insurance. These plans help cover services not included in government programs, and they come in various tiers.

Common providers in Canada include:

·         Green Shield Canada

·         Sun Life

·         Manulife

·         Blue Cross

·         Canada Life

Some plans guarantee acceptance if you apply within 60 to 90 days of losing workplace benefits, without needing a medical exam.

Tip: Look for plans that cover your specific needs and let you keep your family doctor or dentist.

What About Long-Term Care and Home Care?

Publicly funded home care and long-term care are available across Canada but often come with wait times and means-testing. Services include:

·         Nursing support

·         Personal care (bathing, dressing)

·         Meal delivery

·         Respite for caregivers

If aging at home is your goal, now is the time to learn about what's available and plan ahead. Many seniors also buy long-term care insurance, although premiums can be high, especially if purchased later in life.

How to Plan Smartly

1.   Inventory your current benefits – What will end when you retire?

2.   Understand government coverage – Know what’s included and what isn’t.

3.   Shop around for private plans – Get quotes, compare options, and don’t wait too long.

4.   Talk to your doctor and dentist – Ask what services you might need more of as you age.

5.   Factor these costs into your retirement plan – Health isn’t just medical, it’s financial too.

     Universal Healthcare: Canada has a universal healthcare system, meaning everyone, including retirees, has access to essential medical services. 

Helpful Links (all Canadian sources)

·          BCFair PharmaCare

·         OntarioSeniors Dental Care Program

·         Blue Cross Retiree Plans

·         SunLife Health Insurance for Retirees

Final Thought

Your health is one of your greatest assets in retirement. While Canada’s healthcare system provides a strong foundation, it doesn’t cover everything. Planning early can help you avoid nasty surprises, and keep you enjoying life with peace of mind.

What is the Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS)?

When it comes to retirement income in Canada, there’s a trio of programs that many people rely on: Canada Pension Plan (CPP), Old Age Security (OAS), and for lower-income seniors, the Guaranteed Income Supplement (GIS). These aren’t savings accounts like RRSPs or TFSAs, but public programs you may be entitled to after a lifetime of work and contributions.

This post helps you understand what each program offers, when you can apply, and how to get the most from them.

🧱 What These Programs Are, and Aren’t

CPP and OAS are not meant to replace your entire income in retirement.

Together, they’re designed to replace about 30% to 40% of the average Canadian’s pre-retirement earnings. This means that if you were earning $60,000 annually while working, you could expect around $18,000 to $24,000 per year from government benefits like CPP and OAS (combined).

For many people, especially those without a workplace pension or substantial personal savings, this gap can come as a shock.

🔍 Why the gap?

These programs are universal and modest by design, so they remain sustainable for future generations. They aim to prevent poverty, not necessarily maintain your working lifestyle.

That's why your own retirement savings (RRSPs, TFSAs, workplace pensions, home equity, or even part-time work) play such a big role in bridging the gap.

1. Canada Pension Plan (CPP): Your Work-Based Pension

If you’ve worked in Canada outside of Quebec and earned more than the minimum annual threshold (currently just under $3,500), you’ve been contributing to CPP through payroll deductions.

✅ Who qualifies?

• Anyone who has worked in Canada and made at least one valid CPP contribution.
• You can apply as early as age 60 or delay until age 70.

💰 How much do you get?

• The average monthly CPP payment in 2024 at age 65 is about $758.32.
• The maximum you could get is $1,364.60 per month (2024).
• Your amount depends on how much and how long you contributed.

👉 See current CPP payment amounts

🕒 When should you apply?

• Age 65 is the standard, but:
• Apply as early as 60: You get less (0.6% deducted per month early = 36% less at 60).
• Delay until 70: You get more (0.7% added per month = 42% more at 70).
• If you need income earlier, it may make sense to take it at 60. But if you're healthy, expect to live longer, or don't need the money right away, delaying can pay off. I applied at age 60, and used the money to invest in other retirement savings programs. I think I made up more than the 36% I lost by applying early. But I was lucky and not everyone is willing to take bigger risks.

📌 Tip: You must apply for CPP, it’s not automatic. Apply online through your CRA My Service Canada Account. A friend of mine did not apply as he thought he would receive this pension automatically. He finally realized he had to apply but it took him over a year.

2. Old Age Security (OAS): Your Citizenship-Based Benefit

OAS is not based on your work history. It’s a federal pension for seniors 65+ who have lived in Canada for at least 10 years after age 18.

✅ Who qualifies?

• Legal residents or citizens of Canada.
• Must have lived in Canada for at least 10 years to receive a partial pension.
• 40 years of Canadian residency = maximum benefit.

💰 How much do you get?

• The maximum OAS benefit (as of April 2024) is about $713.34/month.
• If you’re 75 or older, you may receive slightly more.

👉 Current OAS payment amounts

🕒 When should you apply?

• Many people are automatically enrolled at 65.
• You can delay up to age 70 for a 0.6% monthly increase (7.2% per year, up to 36% more at age 70).

3. Guaranteed Income Supplement (GIS): Extra Help for Low-Income Seniors

If your income in retirement is low, the GIS can provide tax-free monthly payments in addition to OAS.

✅ Who qualifies?

• Must be receiving OAS.
• Must meet low-income thresholds.

In 2024, if you are single and your annual income (excluding OAS) is below $21,624, you may qualify. For couples, the combined threshold is higher.

💰 How much can you get?

• GIS payments vary based on income and marital status.
• For a single senior, the maximum monthly GIS payment is about $1,065.47 (as of 2024).

👉 Use the GIS calculator to estimate your benefit.

Stacking the Benefits: What You Might Expect

Let’s say you’re a 65-year-old with a moderate work history:

• CPP: $758/month
• OAS: $713/month
• GIS (if eligible): $500–$1,065/month

Combined, that’s between $1,971 and $2,536/month. If you’ve saved in an RRSP, TFSA, or have a workplace pension, this supplements your retirement lifestyle further.

What About Quebec?

If you worked in Quebec, you contributed to the Quebec Pension Plan (QPP) instead of CPP. It’s similar but administered separately. Learn more at Retraite Québec.

Tips for Navigating These Programs

1.   Apply early: It can take time to process applications. Apply about 6 months before you want benefits to begin.

2.   Register for “My Service Canada”: It’s your online portal to check eligibility, apply for benefits, and view statements.
👉 Register here

3.   Keep your address and banking up to date so payments arrive on time.

4.   Reapply for GIS annually: It’s income-tested and based on your previous year's tax return.

5.   Talk to someone: If you’re unsure, call Service Canada or visit a local Service Canada Centre. The staff are trained to help you.

Takeaway

CPP, OAS, and GIS form the foundation of retirement income for Canadians. Knowing how and when to access these benefits can make a big difference, especially if you're relying on fixed income in retirement. Even if you have savings, understanding these programs is key to making your money last.

Understanding RRSPs and Spousal RRSPs – Saving Smarter for Retirement

One of the most common questions people ask when thinking about retirement planning is: “What’s the difference between a TFSA and an RRSP, and do I need both?”

If you’ve already opened a Tax-Free Savings Account (TFSA, discussed in Post 2), you’re off to a great start. But there’s another essential tool in the Canadian retirement planning toolkit: the Registered Retirement Savings Plan, or RRSP. And if you’re married or in a common-law relationship, a spousal RRSP can be a powerful strategy to help reduce taxes in retirement and build savings as a team.

What Is an RRSP?

An RRSP is a registered account designed to help Canadians save for retirement. You contribute money to your RRSP, and that money can be invested in a wide range of financial products, mutual funds, ETFs, stocks, bonds, GICs, etc. Many of my friends invested in the RRSP at their bank using term deposits. I used mutual funds for the money invested in our RRSPs. Investing in a bank term deposit is safe, while investing in a mutual fund may be riskier. So, before you choose your vehicle consider your risk tolerance.

The big benefit? Your contributions are tax-deductible. That means you reduce your taxable income in the year you contribute. And as long as the money stays in your RRSP, the growth (interest, dividends, and capital gains) is tax deferred. You only pay tax when you withdraw the funds, ideally when you're retired and in a lower tax bracket.

RRSP Contribution Limits

You can contribute up to 18% of your previous year’s earned income, to a maximum set by the Canada Revenue Agency (CRA). Here are recent limits:

• 2022: $29,210
• 2023: $30,780
• 2024: $31,560
• 2025: $32,490 (projected)

Unused room carries forward. You can find your personal contribution limit on your latest Notice of Assessment from CRA or through your CRA My Account.

When Should You Contribute?

The RRSP contribution deadline for the previous tax year is usually 60 days into the new year, typically around the end of February or early March. This gives you a chance to make contributions that count toward reducing the taxes you owe for the year just ended.

RRSP vs TFSA – Which Is Better?

It’s not a question of either/or, it’s often both. Here's a quick comparison:

Feature	RRSP	TFSA
Tax on Contributions	Deductible (reduces taxes)	Not deductible
Tax on Withdrawals	Taxed as income	No tax
Effect on Benefits	May reduce income-tested benefits	Does not affect benefits
Contribution Room	Based on income	Flat annual limit for everyone

If your income is higher now than it will be in retirement, an RRSP makes a lot of sense. You get the tax break today, and pay less tax later. For lower-income earners, a TFSA might be a better first option.

What Is a Spousal RRSP?

A spousal RRSP allows one partner (typically the higher earner) to contribute to a retirement account in the name of the other (typically the lower earner). The contributor gets the tax deduction, but the funds eventually belong to the spouse. I did this and was able to maximize the amount of money invested in RRSPs for us.

This strategy helps with income splitting, a way to reduce your total household tax bill in retirement. Here’s how:

• The higher earner contributes to the spousal RRSP.
• The lower earner withdraws the funds in retirement, taxed at their (likely lower) rate.
• This keeps both partners in lower tax brackets.

There are rules to watch out for, especially the three-year attribution rule, which can cause the contributor to be taxed if the money is withdrawn too soon. The rule applies to withdrawals made in the year of contribution and the two preceding taxation years.  A spousal RRSP is best used for long-term planning. Here is how this rule works Example:

If Spouse A (the contributor) makes a $10,000 contribution to Spouse B (the annuitant)'s spousal RRSP in 2025, and Spouse B withdraws $5,000 in 2025, 2024, or 2023, Spouse A will be taxed on that $5,000, not Spouse B.

When to Start With an RRSP

If you're in your 30s or 40s and earning a stable income, an RRSP is a smart way to:

·        Save for retirement while reducing current taxes

·        Build up investment gains without paying annual taxes

·        Create a down payment with the Home Buyers' Plan (HBP)

·        Go back to school with the Lifelong Learning Plan (LLP)

That’s right, RRSPs aren’t just for retirement. They can also help with big life goals.

Where to Open an RRSP

You can open an RRSP at:

• Your bank or credit union
• A financial advisor
• An online brokerage (e.g. Questrade, Wealthsimple, RBC Direct Investing)
• A robo-advisor (like Wealthsimple or Justwealth)

Make sure to choose an investment approach that matches your goals and risk tolerance.

Tips to Make the Most of Your RRSP

1.   Start small, start early – Even $50/month makes a difference. Most financial institutions will help you start even with a small amount of capital. I set up an automatic withdrawal program, so I had a monthly amount going into my RRSP savings. Automating the withdrawal was effective for us.

2.   Reinvest your tax refund – Use your refund to increase your TFSA or RRSP.

3.   Be consistent – Set up automatic contributions to stay on track.

4.   Review annually – Revisit your plan each year as your income and goals evolve.

5.   Coordinate with your partner – Consider spousal RRSPs to reduce long-term taxes.

Where to Learn More

• Canada.ca - RRSP Basics
• Financial Consumer Agency of Canada – Spousal RRSPs
• TurboTax RRSP Calculator

Takeaway: RRSPs offer a tax-smart way to build retirement savings. They work best when you contribute while earning more, and withdraw when you're earning less. If you're in a relationship, don’t overlook spousal RRSPs, they can help you retire with more money and pay less tax,

What Is a TFSA and How Do I Make the Most of It?

 If there’s one thing I wish I had known earlier, it’s how powerful a Tax-Free Savings Account (TFSA) can be for retirement, and really, for any long-term goal. Whether you’re just getting started or you’re already on your way, understanding how a TFSA works is key to building a strong financial future.

When I started saving seriously in my 50s, the TFSA was one of the tools I leaned on heavily. Even though I came to it later in life, I’ve seen firsthand how it can help supplement a retirement plan. For younger folks, especially those in their 30s and 40s, starting now can be a game-changer. The earlier you begin, the more time you give your money to grow, tax-free.

What Is a TFSA?

A TFSA is a registered savings account introduced by the Canadian government in 2009. The beauty of this account lies in its name: Tax-Free. Any interest, dividends, or capital gains you earn within your TFSA are not taxed, even when you withdraw the funds. That’s a big deal.

You can use a TFSA to save for anything, retirement, a rainy day, a home renovation, or a special vacation. And unlike RRSPs, withdrawals from a TFSA don’t count as income and won’t affect your eligibility for income-tested benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

Who Can Open a TFSA?

If you’re a Canadian resident, age 18 or older, with a valid Social Insurance Number (SIN), you can open a TFSA. You don’t need to have earned income, and you don’t need to be employed.

How Much Can You Contribute?

The government sets a limit on how much you can contribute to a TFSA each year. If you’ve never contributed before, you can make up for past years, going back to 2009.

Here’s a quick summary of TFSA contribution limits by year:

2009–2012: $5,000 per year

2013–2014: $5,500 per year

2015: $10,000

2016–2018: $5,500 per year

2019–2022: $6,000 per year

2023–2024: $6,500 per year

2025: $7,000

So, if you’ve been eligible since 2009 and never contributed, you could add up to $95,000 to your TFSA in 2025. (You can check your personal TFSA room by logging into your CRA My Account: CRA TFSA Information).

How to Open a TFSA

Opening a TFSA is simple. You can do it through:

Your bank or credit union

An online brokerage (like Questrade, Wealthsimple, or TD Direct Investing)

A robo-advisor or online investment firm

When choosing where to open your TFSA, consider how you want to use it. If you're planning to invest in stocks, ETFs, or mutual funds, make sure the provider offers a “self-directed TFSA” or “investment TFSA,” not just a basic savings account.

What Can I Hold in a TFSA?

A TFSA isn’t just a savings account; it’s a flexible investment vehicle. Within a TFSA, you can hold:

Cash

GICs (Guaranteed Investment Certificates)

Mutual funds

ETFs (Exchange-Traded Funds)

Stocks and bonds

Using a TFSA to invest in low-cost ETFs or dividend-paying stocks can generate long-term growth, which you can eventually draw on without paying a cent in taxes.

Tips to Maximize Your TFSA

Start early, contribute regularly: Even small amounts add up thanks to compounding. Setting up automatic contributions can make saving effortless.

Let it grow: Avoid withdrawing unless necessary. Once you take money out, you can’t put it back until the following year (and only if you have contribution room).

Use it strategically: Because TFSA withdrawals aren’t taxed, they can be used to top up your retirement income without affecting benefits like OAS or GIS.

Keep records: Don’t over-contribute! My younger brother did and it cost him a lot of money. The CRA will charge penalties on excess contributions. Track your deposits and withdrawals carefully.

Think long-term: A TFSA is a great way to invest for the future. Choose assets that suit your goals, risk tolerance, and time horizon.

Real Talk: Fear and Uncertainty Are Normal

It’s okay to feel overwhelmed. Many people, including me, didn’t fully understand how to use TFSAs until later in life. The good news? It’s never too late to start, and never too early either. Taking small steps now can mean a lot down the road.

And if you’ve already started using a TFSA but aren’t sure you’re doing it right, don’t worry. You’re not alone. Consider talking to a financial advisor for an hour (some offer hourly rates), or look for free community programs that offer financial literacy coaching. Libraries, seniors’ centers, and non-profits can be great places to find help.

Where to Learn More

·         CRA TFSA Basics

·         Financial Consumer Agency of Canada – TFSAs

·         Wealthsimple Guide to TFSAs

Takeaway: A TFSA is one of the most powerful and flexible savings tools Canadians have. Whether you're in your 30s or starting in your 50s like I did, you can use this account to build a tax-free nest egg for retirement. Don’t wait, open one, even if you start small. Every dollar counts.