LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
The Canada Pension Plan retirement pension is:
- APaid to all residents regardless of work history, since it is funded from general tax revenue
- BA means-tested benefit that is reduced as the recipient's other retirement income rises
- A contributory, earnings-related pension from 65, reduced from 60 or increased to 70
- DA private plan administered by employers, with benefits set by each employer's contribution formula
Correct answer: C) A contributory, earnings-related pension from 65, reduced from 60 or increased to 70
CPP (QPP in Quebec) is contribution-based. It is the first layer of retirement income to assess; its amount depends on the client's contribution record.
Why the other options are wrong
- AIt requires contributions from employment; residence alone does not qualify.
- BOAS and GIS are the residence and income-tested programs; CPP is contributory.
- DCPP is a public, government-administered plan.
Exam tip
CPP: contributory, earnings-related, 60–70 start window with actuarial adjustments.
Common mistake
Assuming every client will receive the maximum CPP.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.