Question

16) Susan moved to Canada at the age of 42. She is now 65. If the maximum monthly Old Age Security is $614, how much would she receive per month? a) 397 b) 401 c) 422 d) 353

Answer 1

Susan need to be a resident of Canada for at least 40 years to be get full pension amount. Partial old age security plan will be (1/40)th of full pension.

Number of years that she has been a resident = 65 - 42 = 23

There are 12 months in a year

Total amount of pension = Resident years * 12 * monthly amount

Total amount of pension = 23 * 12 * 614

Total pension = 169,464

Yearly pension = 169,464 * (1/40)

Yearly pension = 4,236.6

Monthly pension = 4,236.6 / 12

Monthly pension = $353