You qualify for an unreduced retirement pension when you reach your 85 factor (age + qualifying years = 85), or at age 65. This means we don't apply any reduction factors when calculating your basic annual pension.
Until age 65, your pension is based on:
If you earn $85,000 in your five highest salary years and have 30 years of credit, your basic annual pension would be 2% × 30 × $85,000 = $51,000.
However, once you reach age 65 OR begin collecting a disability pension from the Canada Pension Plan (CPP), your pension is adjusted based on:
Reduced retirement pension
You're eligible for a reduced pension when you're at least 50 years old. Your reduced pension is calculated just like a regular retirement pension, and then reduced by a 2.5% or 5% reduction formula.