Turning 65

May 18, 2016

In 2016, May is the month with the highest number of pensioners turning 65. If this is you, your June pension will be adjusted to reflect the end of your bridge benefit.

The month after you celebrate your 65th birthday, you'll notice an adjustment in your Ontario Teachers' pension (unless you're already collecting a CPP disability pension). That's because our pension plan is integrated with the Canada Pension Plan (CPP).

Here's how it works:

During your working years you contributed to both the CPP and your Ontario Teachers' pension. Your Ontario Teachers' contributions were reduced to reflect the contributions you made to, and the benefits you earned under, the CPP during the same period.

Chances are you retired before your 65th birthday. During your early retirement years, up until your 65th birthday, we provide a bridge benefit over and above your Ontario Teachers' pension amount.

This benefit supplements your retirement income until age 65 when you're eligible for an unreduced CPP pension. The month after you turn 65 the bridge benefit stops.

When should you take CPP?

Only you can decide what's best for your personal situation, but we can offer you some general guidelines to consider.

If your expenses are high during early retirement – maybe you still have a mortgage or your kids aren't finished post-secondary schooling yet -- consider collecting a reduced CPP pension. The monthly amount will be less, but you'll collect it for a longer period of time. The maximum reduced CPP pension is about $8,000 a year.

If you wait until you're 65 to collect CPP, it won't be reduced and you'll receive a higher monthly amount. By waiting, you can collect a maximum unreduced CPP pension of about $12,000 a year.

Check out the Government of Canada's Canadian Retirement Income Calculator to help you understand the roles CPP and Old Age Security play in your retirement income.