ECO 1102 Lecture Notes - Lecture 6: Canada Pension Plan, Old Age Security, Real Interest Rate

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Gordon Lenjosek

Document Summary

The cpp retirement pension: a monthly bene t designed to replace about 25% of the average person"s lifetime pre-retirement employment earnings, up to a maximum amount. Gdp per person is adjusted annually based on increases in the average wage. Maximum retirement pension is adjusted annually based on increases in the cost of living as measured by the cpi. The oas program: a non-contributory, residence-based program, nanced through general tax revenues, the objective of which is to ensure a minimum income to seniors. Determine the basket : statistics canada surveys consumers to determine what a typical consumer buys. Consists of about 600 goods and services (updated every 2 years now). Find the prices: statistics canada collectes data on the prices of all the goods and services in the basket. Compute the basket"s cost: the data on prices is used to compute the total cost of the same basket at different times.