Want to test your investment and retirement knowledge?! Take this 5-question quiz to test your understanding of Canadian retirement planning basics. Choose the best answer for each question, then check your responses against the answers. Don't worry if you don't know all the answers – this quiz is designed to help you learn!
A) $800 per month
B) $1,800 per month
C) $2,800 per month
Answer A - $800 per month.
As of early 2026, the average Canada Pension Plan (CPP) retirement pension for new beneficiaries starting at age 65 is approximately $803.76 per month. While the maximum possible payment for a 65-year-old in 2026 is $1,507.65 per month, most recipients receive less than the maximum based on their lifetime contributions.
A) Pension income from Canada Pension Plan (CPP)
B) Rental income from renting your basement apartment
C) Interest income from a Guaranteed Investment Certificate (GIC)
Answer B - Rental income from renting your basement apartment
Rental income is considered "earned income" for RRSP contribution purposes, which surprises many Canadians. When you rent out a property (including part of your own home, like a basement apartment), the net rental income you report on your tax return counts toward building your RRSP contribution room.
A) You pay no tax on withdrawals from the plan after age 65
B) Your contributions into the plan are tax-deductible
C) You receive a tax credit for the full amount when you withdraw the money
Answer B - Your contributions into the plan are tax-deductible
One key advantage of an RRSP is that your contributions into the plan are tax-deductible in the year you make them. In essence, the government is encouraging you to save for retirement by giving you an immediate tax break. This makes RRSPs particularly valuable if your tax bracket is higher now than it will be in retirement.
A) Your spouse is a better investor than you are
B) You've already contributed the maximum to your own RRSP
C) You expect your spouse to have a lower tax rate in retirement
Answer C - You expect your spouse to have a lower tax rate in retirement
The primary reason to use a spousal RRSP (rather than an individual RRSP) is for income splitting purposes when spouse one has a higher income than the other. The spousal RRSP can help direct retirement income away from the higher income partner and toward the lower income partner where it is taxed at a lower rate.
A) Old Age Security (OAS) pension
B) Canada Pension Plan (CPP) benefits
C) Employer pension income
Answer A - Old Age Security (OAS) pension
While you can share CPP benefits and split eligible employer pension income with your spouse or common-law partner to reduce your combined tax bill, Old Age Security (OAS) benefits cannot be split. OAS is calculated based on individual residency and is subject to a clawback (the OAS recovery tax) if your income exceeds certain thresholds.
Remember: financial literacy is a journey, not a destination. Even if you scored perfectly, there's always more to learn about optimizing your personal situation. An Edward Jones financial advisor can help you understand how these concepts apply specifically to your circumstances and create a plan tailored to your retirement goals. This quiz is for educational purposes only and does not constitute financial advice. Please consult with your Edward Jones financial advisor regarding your personal situation.