CPP disability benefit versus early retirement pension
If you are over 60 and qualify to receive a Canada Pension Plan (CPP) disability benefit, you are better off applying for that benefit than applying to take your CPP early. Let’s take a look at who is eligible for a CPP disability benefit, how the benefit is calculated, and what you need to know about your options.
Who is eligible for a CPP disability benefit?
In order to qualify for a CPP disability benefit, your condition must meet the legislative definition of “severe” and “prolonged,” and you must have made contributions for at least the minimum qualifying period (described below).
Severe means that your disability makes you “incapable regularly of pursuing any substantially gainful occupation.”
Prolonged means that your disability is “likely to be long continued and of indefinite duration or is likely to result in death.”
Each of the words in the above definitions has a specific meaning within the disability guidelines that have been developed, but for the purposes of this article let’s just consider that they mean that you are permanently incapable of doing any type of paid employment.
There are currently two methods of meeting the minimum qualifying period, as follows:
- You must have made “valid” CPP contributions for at least four of the last six years in your contributory period, or
- You must have made “valid” CPP contributions for at least 25 years, at least three of which must be within the last six years of your contributory period.
Note: Valid CPP contributions means contributions on earnings that are equal to at least 10% of the Year’s Maximum Pensionable Earnings (YMPE) for that year.
How is a CPP disability benefit calculated?
A CPP disability benefit is a monthly benefit that consists of a flat-rate portion ($485.20 for 2018) plus 75% of a person’s calculated CPP retirement pension.
Related article: How to calculate CPP Retirement Pension
Let’s assume the maximum CPP retirement pension is $1,134.17, we can calculate that the maximum CPP disability benefit for 2018 would be $1,335.83.($1,134.17 x 75% = $850.63 + $485.20 = $1,335.83)
Should I apply for a CPP disability benefit or an early retirement pension?
If you think that you meet the medical and contributory requirements for a disability benefit, you should always apply for that. This is because the amount of a disability benefit is always more than a retirement pension, and when you reach age 65 it will convert automatically to an unreduced retirement pension. If you apply for an early retirement pension, it will be paid at that reduced rate for life.
If you do apply for a disability benefit and are denied because you don’t meet either the medical or the contributory requirements, you will be offered the option to have your disability application used as an application for an early retirement pension. Since the disability adjudication process normally takes several months, this means that your early retirement pension would effectively be paid retroactively.
One further option that exists is to submit simultaneous disability and early retirement applications. Your early retirement application will be approved immediately, and if your disability application is eventually approved, it will replace your early retirement pension at the higher rate. The advantage of this is that it guarantees that you have an income stream while your disability application is being adjudicated.
What happens to my disability benefit at age 65?
As mentioned above, a CPP disability converts automatically to a retirement pension at age 65. The easiest way to estimate the amount of the retirement pension in this situation is to subtract the flat-rate portion of the disability benefit and divide the result by 75%.
Example: Susan is receiving a CPP disability benefit of $900.00 per month. When she turns age 65 in 2018, her disability benefit will convert to a retirement pension of $553.07.
($900.00 – $485.20) / 75% = $553.07).
How much would I receive in disability benefit versus an early retirement pension?
Just for comparison, if in the example above Susan had applied for an early retirement pension at age 60 instead of applying for a disability benefit, her retirement pension at age 65 would have been reduced by the actuarial adjustment of 36% for taking it early. As a result, it would have been approximately $353.96 (64% of $553.07 as calculated above).
Related article: Should I collect CPP retirement pension early?
By applying for a disability benefit at age 60 instead of applying for an early retirement pension, she is ahead by $199.11 ($553.07– $353.96) monthly at age 65. In addition, she received the higher CPP disability pension of $900.00 for five years instead of the early retirement pension of $353.96, for a total of $32,762.40 more during those five years ($900.00 – $353.96 = $546.04 x 60 months = $32,762.40).
So you can see that if Susan is eligible for a disability benefit and pursues that option, she is much further ahead than if she applies for an early retirement pension. This applies both to the period of time that she receives the disability benefit, and after it converts to a retirement pension at age 65.
In the example above, you advise that the alternative 5-year-early CPP would have been reduced by 30%. Does this reduction apply to the 75%xCPP component of the disability pension? The numbers in the example seem to imply that it wouldn’t?
You are correct that the 75% component of the CPP disability pension calculation is not reduced by the 30% factor that would apply if the person took the early CPP retirement pension instead.
I should also mention that since I originally wrote this article, the reduction factor for an early CPP retirement pension has been increasing. For 2015, this factor is now 0.58% per month and beginning 2016 it will increase to 0.60% per month.
Are your CPP Benefits affected at age 65 if you collect CPP Disability Benfits previously? Is your CPP reduced in any way by collecting disability?
Thanks very much!
The amount of your CPP retirement pension is not reduced by having received a CPP disability pension. That period of time is simply excluded from your contributory period.
I have been quite penalized. I started claiming the disability benefit in 2005 so I have made no contributions from 2006 to 2016. Prior to that my contributions were the maximum for 30 years. My entitlement to CPP is now far, far, below the maximum when my CPP starts at 65 in November, 2016. Maggie
Maggie – How much is your CPP disability pension now, and what amount do you think your CPP will be ay age 65?
so if I’m on cpp disability until age 65 my cpp retirement won’t be reduced
Hi Darin – Your retirement pension at age 65 will be less than what you’re receiving as a CPP disability pension, but it won’t be reduced as a result of the age-reduction factor. In effect, it will be the same amount as it would have been if you had been age 65 when you became disabled.
So if I understand this correctly – If you are receiving CPP Disability you are no longer contributing to the CPP during the time you are receiving CPP Disability payments – So in the example above after age 65 when CPP Disability ends and converts to CPP the amount will be much less because you have “lost” years of contributions into the CPP whilst receiving CPP Disability payments – Correct?
Hi Jakestar – Not exactly. The retirement pension at age 65 will be less that the disability pension was, because the disability pension includes a flat-rate benefit of $496.36 (2019 rate) plus 75% of the calculated retirement pension. At age 65, you get 100% of the calculated retirement pension as of the effective date of the disability, escalated to the year that you turn age 65. Although you have zero earnings/contributions while receiving a CPP disability pension, the entire period of disability is excluded from the calculation also, so your retirement pension remains protected.
My husband has been at a company 22 years. He has a permanent injury in his neck and was on modified duty when his company”were in albertA”laid off everyone.now he is on medical ui as he can’t apply for work.He’s appealing his job for short or long term disablity benefits but if he doesn’t get that and can’t work.Should he be Appling for early disablity now,
Yes, if he’s unable to work due to an injury and if it’s permanent or long-term, he should be applying for a CPP disability pension now.
Hello my name is Rodi Kalicharan. I’m 49 years old in November coming, and I have a learning disability. Through personal tragedies I was force to go on welfare because the companies will not give me a chance to pass the probation period. Yesterday I was visiting my uncle and my cousin who is on long term disability for kidney problems told me I should tap in my pension plan. So my question is is he right, because I will be 49 years old.
Hi Rodi – Have you ever worked and contributed to CPP? If yes, approx what years did you work and contribute to CPP?
I have been off work since 2013 due to a motor vehicle accident. I didn’t know I could apply for cpp disability but have been receiving cpp & survivors cpp since 2015. I recently turned 65, is it possible to apply for retroactive cpp disability for the past 8 years.
Hi Brenda – I’m sorry, but in the circumstances that you describe it is not possible for you to receive any retroactive disability payments at all.
Hmmm… In my situation I am not currently collecting CPP Disability because it is a taxable claw back to my Insurer – So my understanding is that I am no longer contributing to the CPP and thus my CPP Pension at age 65 will be much less than if I was still actively employed and contributing to the CPP – From what I have read here it appears that I should apply for CPP Disability and collect it because it will increase my CPP at age 65 – Is this correct?
It’s true that your CPP retirement pension will almost certainly be better (it can never be worse) if you were currently receiving a CPP disability pension rather than not receiving it and having zero earnings. How much difference it will make depends on your lifetime record of earnings between age 18 and now, and how close you are now to age 65. I could do those calculations for you for a fee of $50 plus GST. If you’re interested, email me at [email protected]
Can i ask do you work for cpp?
Hi Karen – I used to work for CPP, but I retired from there in 2003.
Hi, Doug, you use to work for cup, I like to ask you a question, I’m 56 years old, I will not see 65 due to terminal cancer, I applied and now get Canada disability pension, but it’s tuff to come down from clearing 55 thousand dollars a month at work to one thousand dollars a month on this cdp.im wondering, is there something else I can apply for? Eh. Can I apply for old age security Benita also? or something else? After praying so much in taxes for 30 years it don’t seem fair, thank you for your time and looking forward to your expertise,,,Jack
Hi Jack – My sympathies with your situation, but unfortunately you can’t receive the OAS prior to age 65 and I’m not aware of anything else that you might be eligible for.
I’m receiving CPP disability and I’m 55. My question is, if I take my company‘s pension at 60 would this affect my CPPD? I’ve spoken to my company’s pension and was told that the CPPD would not affect my company’s pension. If you could please let me know that would be greatly appreciated. Thank you.
Hi Sandra – No, taking your company pension won’t in any way affect your CPPD.
Hi Doug ,
Thank you for this article I have been reading queens printer and other research sources trying to grasp the situation but until now was still confused. I am 34 on dialysis and have been on disability since 22 . Although on disability through the alberta secured program , I have always worked with a stable career until the last 5 years (also attended post secondary ) , I have contributed to CPP all my working life since 18. I have been asked to apply for the CPP disability benefit and sign the CPI document by AISH , the document has a clause stating its irrevocable consent to my cpp payments and deductions.
I was very wary to sign any document that stated “irrevocable consent” but also given my age and uncertainty with the government. I have never touch any of my cpp, no EI, no CPP disability etc. I’m worried about signing the documents jeopardizing what little CPP I do have down the road . I would prefer to leave it there and not touch it at all, however I’ve been told it’s now legislation that I MUST sign the documents and I MUST apply . Are there are concerns for someone my age entering into this contract with CPP ? Thank you again so very MJ but for sharing your knowledge and for everyone who has shared on this article.
Hi Jenna – I wouldn’t mind seeing a complete version of the clause that you’re referring to, but nothing that you sign will result in any of your future CPP benefits being lost to you, other than if your CPP disability pension is approved they may be entitled to any retroactive payments that you are eligible for from the date that you signed the consent until the date that your CPP disability is approved.
Hi Doug ,
The clause I’m referring to is on the CONSENT TO DEDUCTION AND PAYMENT (CPP)
SC ISP-1613( 2014-08-01) E
Under the section
Pursuant to the Canada Pension Plan and its Regulations ,
It’s the 4th and final clause stating
– this consent is irrevocable
Hi Jenna – Because it is irrevocable doesn’t mean that you are giving up anything from your future CPP. It just means that you can’t change your mind later, because the province is going to be providing you with some benefits on the basis that they will be paid back from your first CPP payment. That is the end of the monies that they can receive back from CPP though, so don’t worry about signing this form.
I am 64 yrs old and have been on Ltd through my employer for about
a year. They have asked me apply for ccpd if I qualify for benefits
Will it reduce my regular ccp benefits when I qualify at age 65.
Hi Richard – No, it will increase it!
If you take CPP early and are later disabled is there provision to then apply for disability for how many yrs remain til age 65?
Hi Krista – There was no such provision when I wrote this article, but effective January 2019 you can now apply for a post-retirement disability benefit if you become disabled after starting your early CPP retirement pension and prior to turning age 65. The amount of this new benefit is the same as the flat-rate portion of the regular CPP disability pension ( $505.79 for 2020) and it will stop when you turn age 65 and you will then revert back to your normal reduced early retirement pension after age 65.
Thank you very much Doug.
Hello, I have a quick question I have chronic disease called Ankylosing spondylitis and there is no cure for it. I am really struggling, everyday is a long day for me, I am fatigued 24 hours, should I apply For Canada pension disability?
Hi Afa – If your condition prevents you from working and it is a permanent condition, then Yes you should definitely apply for CPP disability.
I’m on a CPP disability and I just turn 61 in November, I been on it for a long time, I can’t read or write very good.
Hi Rita – Did you have a question, or is that just your comment?
$55000 a month?. I guess you should have saved some of your money for emergencies. Cancer is one of those. Hope you recover.
I am on CPP disability and one thing that isn’t mentioned in the article is that at age 65 you have a choice of delaying your regular CPP until up to 70. To do this you have to send CPP a letter stating you don’t want to have it convert automatically at 65. After doing the calculations regarding GIS we will get $200 a month less not taking my CPP at 65 as we will receive more GIS. Folks have to understand that they need to have a large TFSA and other forms of excess cash after 65 to maximize GIS. There are many other benefits to be had while receiving GIS. And you know what I have paid huge amounts of taxes in my working life and want to get as much of it back as possible. Thanks for all the great articles Doug. Cheers Rob
When you apply for CPP disability,how long is the waiting period and how do I survive until I start receiving a cheque.Are you aloud to work until then .And are you given backpay from when you are approved
Unfortunately, it often takes a long time for a decision on CPP disability. 6-12 months is not uncommon, but you will receive backpay if/when it is approved.
If you don’t have enough income or savings to survive in the interim, provincial welfare will likely help you out.
If you are able to work in the interim, you are not disabled for CPP purposes.
No, it took five years for me to get a decision, and no provincial welfare will not help if you have a spouse that has an income; even if it is below the poverty line. And, how is it that once you turn 65 you are not deemed “disabled” anymore?
There is a 4 month waiting period but it goes back from the last day you worked, not the day you applied, if your terminal they also speed up the process, hope this helps margaret,
I’ve been receiving DCPP & a disability pay from work since I was 36 years old. I’m 48 & with all the talk of changes with CPP plus I’m currently going through a divorce, I must admit I’m concerned. CPP just advised me to apply for credit splitting which I did but know nothing about. Ironically I found out my Ex had topped up his CPP contributions just before we separated, all the back from the 1990’s without my knowledge. I didn’t even know that was possible. My questions for you are:
1)I’ve been living & with my Ex from 1992 – 2019. If he topped his CPP up to the maximum amounts & mine were not even close to maxed out, with the credit splitting, do you have any idea how this will affect my DCPP and my CPP payments at 65 and by approximately how much?
2) Because I’ve been on DCPP for so long & probably will be until 65 years old, how bad of a reduction can I expect my monthly amount of my CPP at 65 to be? Right now (without any adjustments for the credit splitting)I receive $1089.51 without tax on DCPP.
Any assistance would be appreciated. Even a ball park guess. I’m currently also responsible for son who also has disabilities & I’m not exactly getting much help so planning is extremely important right now.
Thank you and be safe.
Hi Marilyn – First, there is no such thing as “topping-up his CPP contributions” for the past 30 years, so that didn’t happen. He could have filed amended income tax returns if he had undeclared earnings from self-employment and he could have made contributions on those earnings, but that is generally limited to the last 7 years (I think). In any case, if he did make extra CPP contributions recently, that can only be a good thing for you if you have now applied for a CPP credit split.
Now, in response to your specific questions:
1) I couldn’t even hazard a guess as to how much it will affect your CPP-D, but unless you had higher earnings than your Ex for at least some years, a CPP credit split could never be a bad thing for you.
2) Your current CPP-D rate of $1,089.51 will convert to a CPP retirement pension of approx $771.55 at age 65. Again, if your Ex’s earnings were generally higher than yours, a CPP credit split could only increase that amount, not decrease it.
If you are turning 65 in July and you have just become disabled should you apply for the disability pension now
Unfortunately, there wouldn’t be much of an advantage in applying for a disability pension in your situation, so it might not be worth your effort. If, for example, your disability started this month (March 2015) your disability pension would begin four months later and would then convert immediately to a retirement pension for August 2015.
Depending on your lifetime record of earnings, that could be worth about $1,000 for that one month, and a slightly higher retirement pension at age 65.
My husband has suffered a 2nd seizure that we have not been able to determine a cause for yet. He is on short term disability from work that will last 17 weeks. He turns 65 next week Ana will start to receive CPP. Would he be eligible for a disability pension?
Unfortunately, CPP disability doesn’t become payable until four months after a disability prevents someone from working, and it isn’t payable after age 65.
So unless you think your husband has been disabled for more than four months already, there wouldn’t be any point in him applying now for a CPP disability pension.
Can you apply retroactive if you have been disabled prior. As this is the first I have heard of this and have been out of work for the last 3.5 years? This is due to several medical conditions.
You can apply retroactively, but you can only receive a maximum of 12 months of retroactive disability benefits and you can’t have been receiving a CPP retirement pension for longer than those 12 months.
I am a veteran is there any claw back to my current benefits from Veterans Affairs by receiving this. Also is this tax free or do you have to pay taxes on it.
You’d have to ask someone at Veterans Affairs whether receiving CPP disability would affect your benefits from them, but all CPP benefits are taxable.
Hi! I currently receive cpp disability and turning 65 in December! What does disability exclusion mean when determining how much my cpp will be? I worked 24 years! And also does service ontario know how many kids I had to include child rearing years?
Hi Angela – The CPP disability exclusion means that the amount of your CPP retirement plan will not be reduced due to your zero employment earnings during the months that you were eligible for CPP-D. I’m not sure what Service Ontario might know about anything, but Service Canada would only be aware of any children that you claimed when you applied for the CPP disability pension.
My mother was forced to retire at 61 due to brain tumour no has dementia. She was on sick benefits for a year then started her early retirement. Can i apply for disability she should have received before cpp kicking in at 65. She was never advised and struggles she has dtc and is now 71 she became ill in 2007
Cassandra – I’m sorry, but it’s too late for your mother to apply for CPP disability now. The maximum retroactivity for applying for a CPP disability pension would have been approximately 15 months after she started receiving her early CPP retirement pension.
I am 62 and collect a survivor’s benefit plus a disability pension. What is going to my income when I turn 65.
Rebecca – Your CPP disability pension will convert to a retirement pension at age 65, and your CPP survivor’s will also be recalculated at the same time. The end result will be a lower benefit from CPP, but you should also become eligible for OAS at the same time. I’d suggest that you call Service Canada at 1-800-277-9914 to see if they will estimate what your combined retirement/survivor’s pension when you reach age 65.
My wife only worked few months and then she became disabled due to a car accident.she was declared disabled for prolonged and severe disability.can she apply for disability pension.
The answer depends somewhat on when your wife became disabled, but for the most part she would need to have made contributions to CPP for at least four years in order to qualify for a CPP disability pension.
So i am receiving disibility now and when i turn 65 how much cop will I get and does it automatically turn to pension
Hi Anna – How much is your current monthly CPP disability pension?
I am on long term disability with worksafe nb .i am eligible for cppd but worksafe will take my part.i am also eligible for medical retirement from my federal job with 11 years of service….any advice
Even if worksafe reduces their benefit by the amount of your CPP disability, you will still be ahead in the long run. That’s because if you receive CPP disability, your CPP retirement will be higher at age 65 than if you simply don’t receive CPP disability but don’t have any earnings during that time.
If i medicaly retire will worksafe take my pension untill i am 65 ?
I’m sorry, but my expertise is limited to CPP and OAS. You’ll have to check with Worksafe to see what they will do in this situation.
Thank you very much
I am a Canadian but was working in USA earlier. Now I am in Middle East, but paying my taxes in Canada regularly for the last almost more than 5 yrs. I will turn 60 by the end of October, 2015. In your opinion how will be my situation for CPP, as I am almost 60 now. Is it advisable to proceed for CPP right now? What contributions I have to proceed with to attain CPP, with the possibilities of retirement pension when I will be 65?
You would have to contact Service Canada to see how much your CPP might be. Here’s a link that might work for you: http://www.servicecanada.gc.ca/eng/online/mysca_credential.shtml
Hello and great site you have here. Question: if I apply for CPP disability and it is granted, and I receive benefits for 2 years while waiting for Wsib to decide if they will pay my claim, can I cancel my cpp disability once Wsib takes over paying for my claim? 2nd part to question: will applying for cpp disability because of my workplace injury affect the amount of cpp I will receive when I retire?
thank you for your feedback
No, you can’t cancel your CPP disability unless you cease to be disabled. But why would you want to?
Yes, receiving CPP disability will affect the amount of your CPP retirement pension. It will be more!
I am currently receiving CPP Disability and a reduced pension. If my spouse dies am I entitled to receive his CPP
You would likely be eligible for a portion of your spouse’s CPP survivor’s pension, but there’s a complex formula for calculating how much it would be.
If you want an estimate, you and your spouse should call Service Canada at 1-800-277-9914.
I got CPP when I turned 60. I didn’t know about disability type CPP until 16 months later. I applied and say I only had 15 months to apply. I don’t it, why is that? Am I beat for the rest of my life. That’s your country?
If you like this country feel free to leave
If you dont like this country feel free to leave
just having fun, waiting for the answer.
Waiting for doug to say why the 15 month thing.
The explanation for the 15 month restriction is:
– you can’t receive CPP disability if you “become disabled” after starting your CPP retirement pension;
– there is a limit to retroactivity of all benefits under the CPP, and the limit for CPP disability is 11 months of payment plus the 4-month waiting period;
– as a result of the above two legislative provisions, you can no longer qualify for CPP disability once you have been receiving a CPP retirement pension for more than 15 months, even if your disability actually existed before you started receiving your CPP retirement pension
this is not an explanation .it simply states what is in the act. did you ever consider that this time limit is discriminatory? it restricts your right to disability benefits even though you meet the eligibility requirements. i am interested in your opinion as i am appealing my claim based on discrimination. thanx.
I believe that there needs to be some limit on retroactivity, and I’m OK with the current one. Where would you draw the line?
Are you providing(for a fee)a personalized service re: Disability Tax Credit, for which I have been approved in 2014. Please advise
No, I don’t provide any service regarding the Disability Tax Credit.
On LTD for last 3yrs, recently was suggested to me by my Fed. Employer to apply for Early Retirement due to my med condition. 1. If, I’d apply for such retirement will my LTD Benefits stop or, they will continue until my 65?
2. I am not certain at this moment about my options, alternatives and of course what would be the best or, most profitable for 53yrs old female with MS with no other support except her salary-benefits?
I’m afraid that your questions go well beyond the CPP. I can only suggest that you make sure that you fully understand all of your options before you make any decision.
my disabilaty is now 690 and i am now 61 what it will be at my age of 65
Hi Jadranka – Your CPP disability pension will end with payment for the month that you turn age 65, and it will convert automatically to a CPP retirement pension in the amount of approx $245 (in 2020 dollars).
1. Since, you don’t provide any service regarding the Disability Tax Credit would, you be able to provide me a key contact for an individual or, a Company who does for a fixed fee?
2. Are you providing a personalized service re: CPP for a fixed fee?
1. I’m sorry, but I don’t know anyone who provides service regarding the Disability Tax Credit.
2. Yes, I provide service regarding the CPP for a fixed fee. You can email me at [email protected]
In a person was awarded monthly LTD benefits through an insurer up until 65, (not a lump sum payment) does that persons CPP retirement income match the value of the LTD monthly benefit once the person is over 65 ? Thank you.
There is no connection at all between the amount of your private LTD benefit and your CPP retirement pension.
Do you know how much your children get for college or university if your on cppd thanks
Children who are under age 18 or between age 18 & 25 and attending fulltime at school or university receive a monthly benefit of $234.87 (2015 rate) if one of their parents is receiving a CPP disability pension.
What if both parents are separated and both are on disability pension, can both parents apply for this? Or only one parent? Thank you
Hi Jack – As long as the children are still considered as dependant children of both parents, then children can be eligible for both disable parents. Payment will be made to whichever parent has custody and control of the child(ren), or directly to the children if they are over age 18.
I RECIVE CPP DISABILATY FROM 1996 IN 3 YEARS I WILL BE 65 WHAT WILL HAPPEN TO MY DISABILATY AND HOW MUCH I WILL GET
Hi Jadranka – How much is your current monthly CPP disability pension?
Thank you again you are the best
I am 47 a person with disability (PWD), receiving 906 dollars. what age will CPPD replace my PWD and how much.
Your provincial PWD benefits will never convert to a CPP disability pension, because they are totally separate programs run by two different levels of the government.
If you have made enough contributions to CPP and if your disability meets the above definition of “severe and prolonged”, you should likely apply for a CPP disability pension immediately, although your PWD benefits will likely be reduced by any amount that you receive from CPP.
As mentioned above though, your CPP retirement pension will be much more when you reach age 65 if you receive a CPP disability pension now, compared to if you simply don’t work and contribute to CPP for the next 18 years.
Currently receiving CPP Disability. Am I entitled to survivor benefits even if 23 year marriage ended in divorce?
No, you can’t receive CPP survivor benefits if your marriage ended in divorce. You may however be entitled to a CPP “credit split”.
Here’s a weblink with some details on a credit split: http://www.esdc.gc.ca/en/cpp/credit_splitting.page
Just a heads up if you receive cppd and get medical retirement with pension your pension is lower then if you dod not have cppd.so in my case worksafe takes my cppd (not the kids portion).and my pension is 300$ lower a month.so not sure if i made right choice.any idea how much having cppd will help me at 65 i am 44 now
If you continue to receive CPP disability until age 65, your CPP retirement pension will be considerably more than if you weren’t receiving CPP disability and had zero earnings.
“WorkSafeBC may deduct 50 percent of the money CPP pays to you from your WCB permanent disability benefits.” …for the same injury…
…and the province takes 100%
Not easy to calculate. PWD going up to $983 in Sept.2016 if you don’t take the buspass. Provincial vs CPP-D ?! Support or maybe more money?!
I’m currently on LTD. I’ve been contributing since 1992 and I’m assuming my LTD has been contributing as well since it began in 2014. Do I need to wait one more year so it’s 25 before I can apply for CPP disability? I live in Manitoba are there any other benefits I can/should apply for?
I don’t fully understand your question, but if you think that your disability meets the “severe and prolonged” definition above, you should apply for a CPP disability pension immediately.
Can you cancell your canada pension dosability if its to your advantage even if you started receiving it.
The only provision to cancel a CPP disability pension under the legislation is if you feel that you are no longer disabled.
I stopped working due to layoff at the end of October 2014. I collected EI while unsuccessfully looking for work until sometime in early August 2015. I have been advised by my daughter (an MD) to apply for a disability pension owing to severe hearing loss that is progressively getting worse with time. Question 1: If my doctor agrees to my application can he also agree to backdate the start of the disability to the end of my EI claim base on medical evidence? If so, does the 4 month waiting period commence in August 2015 or the following month September? Question 2: Additionally, at age 59, I can potentially apply for a reduced CPP pension. If I do and my disability claim is eventually approved does this mean my CPP pension that replaces it at age 65 will be at my full CPP rate or at the reduced rate because I applied before getting a disability benefit? In the later case, it would likely be foolish to apply for CPP now and have to live on a much reduced CPP benefit after I turn 65.
1) Yes, your doctor can indicate the date that he believes your condition first prevented you from working. The 4-month waiting period will start with whatever month CPP agrees that your disability first prevented you from working.
2) Although you can apply for your early retirement pension at age 59, the first payment isn’t until the monthly following your 60th birthday. If your CPP disability pension is approved later, your CPP retirement pension at age 65 would be your full rate, not the reduced rate.
I am 54 on EI claim claim which runs out shortly.I receive the Disability Tax Credit. My doctors have suggested i apply for cpp disbility should i wait until my Ei claim is exhausted before filling out paperwork. i ve worked since i was 19 full time except for 4 maternity leaves. second question are you able to earn any additional income while on cpp disability
It would be a good idea to wait until your EI runs out before you apply for CPP disability, because you have to claim that you’re able to work to receive EI and you have to claim to be incapable of working to apply for CPP disability.
There are limited allowable earnings if you’re approved for CPP disability, and they will explain those rules if/when you are approved.
Hi Dave: I am 47 and have severe anxiety/panic attack disorders which was diagnosed 13 years ago. For the past three years I have been unable to hold down a job due to my anxiety. I will be applying for CPPD. Would these diagnosis qualify? I have also been diagnosed with emphazema however, I need to be under 40 percent and on oxygen however, I am only at 54 percent so that will not qualify. I have worked for over 30 years. Do you have an idea of what my monthly payment would be from CPP?
There are no specific diagnosis that automatically qualify or disqualify you for CPP disability. It all depends on whether your condition(s) prevent you from working.
Service Canada will give you an estimate if you call 1-800-277-9914.
If it helps Cathy, I am on CPP disability for depression and severe anxiety disorder. I have some kind of weird brain interaction 15 years ago, spent 8 years trying to just work and ignore it but that just added IBS to my problems. The key with psychological complaints is you need really solid documentation. My records tracked back the full 15 years, with a ton of tests. and it was my doctor who said I shouldn’t work any more. I was also a chemical case which meant psychiatrists could do little to nothing for me. I am purely medical.I was working and taking care of my parents suffering from dementia. I was basically blowing all my gaskets (my mother was a particularly bad case), trying to watch out for them and somehow live my life. They are gone now and I am still a wreck 2 years later. At 61, my prospects are crap. But CPP did come through, my disability is about 940 monthly.now. It took a little less than three months and I was awarded the full back pay. (11,000). It very definitely saved my life and I was starting to cut myself, testing ways to end this miserable existence. What a difference a little sum of 940 a month makes.
If a person is awarded a lump sum settlement from a insurance company due to personal injuries or MVA and the same person applies for CPP disability benefits and is successful, will there be an offset or a deduction from the persons CPP disability benefit entitlement amount even if it’s retroactive ?
From my understanding, the only time that retroactive CPP disability benefits can be assigned to an insurance company is where the client has authorized such a recovery.
I apologize. Perhaps my question wasn’t as intended.
Are there any questions on the CPP disability benefit application form that ask for example, ” have you received or will you be receiving any monies from any other source ? And if there is such a question, does this mean CPP intends to deduct such monies from CPP disability benefit entitlements ?
Sorry that I misunderstood your original question.
No, there are no such questions on the CPP disability application, and this would never be done.
Just a bit confused and hoping you will clarify. It states above that when one turns 65, it will automatically convert to an unreduced pension, but the first example shows that it does get reduced. Can you please help me understand this? Also, what effect would the CPP disability pension have on Old Age Security pension when I turn 65? Thanks for your help.
By “unreduced”, I mean that it won’t be reduced by 36% for the “age-reduction factor” that would have been applied had the retirement pension itself started to be paid at age 65.
Receiving a CPP disability pension wouldn’t have any effect on the OAS pension at all.
Okay, that makes sense. Thanks for responding.
I understand a person doesn’t have to report a certain amount of income while receiving CPP disability benefits. Any idea what this annual allowable income amount is for 2016 ?
The “allowable earnings” level for CPP disability is 10% of the YMPE, which is $5,400 for 2016.
For 2016, the increase for the monthly maximum payment of CPP Disability, which is based on the CPI, was 1.2%. However, the increased of the monthly maximum payment for CPP Retirement for 2016 works out to an increase of 2.58%. Why is there such a difference between the increase percentages? I thought CPP Retirement was also increased based on the CPI.
It was $5300/ year right? On the tax side, do you have DTC? around $8000 I think.
On the “eligibility” issue. You might want to mention that in the 4 year (or 3) , you need to earn 10% of max.
Why is this hidden ? Why the “late application” hidden and mysterious? I don’t know. I am trying to contact the about the late application to find out how that goes, but I can’t even get on hold. 🙁
Also, don’t believe what Service Canada website says about “you are not eligible to receive CPP-D” as they only use the information they have.
So if you been sick for 3 years, but not been able to work with a doctor or just simply didn’t know about it, it seems you can apply with this “late application”. So Service Canada is very misleading! You might just give up after reading that!
I don’t know why there be a limit to this, the fact that you get money retroactively is understandable but not even being able to apply?! Just one of the many things need to be changed.
You make a good point that the earnings need to be at least 10% of max to qualify for CPP disability.
You also make a good point that the “late applicant” provision is probably not well communicated.
Hello, I got injured at work and was on sunlife disability 2 times before for 2 years each time, and now I am back on sunlife LTD. I just learned about medical pension. Is there a write up about the prolonged disability and severe. I am wondering if I will qualify. Sunlife is giving me a hard time. I have the application coming in the mail. thank you
Hi doug if iam collecting insurance benefits does collecting cpp benefits affect the amount off money the insurance pays for example my insurance is to pay me 60% off my pay for long term disability and iam collecting cpp pension does this affect the insurance benefits please advise
Hi Jim – That answer depends on the terms of your insurance policy, so only your insurance advisor can tell you the definite answer, but it probably does.
I have a severe (3 points from profound hearing loss) I am 41 and been off work for 6 months due to this disability. I have applied for LTD through my work where I have worked for 20 years. They have requested me to apply for CPP disability benefit. I am not clear why when I have paid into this policy for 20 years, they are requiring me to get CPP Disability Pension. However my audiologist has stated that people with severe to profound hearing loss often get denied CPP Disability Pension. Is being deaf not considered a disability? I already have the Disability Tax Credit and have for many years. Is disability through one area of the government not disability through another? Perhaps you can shed some light on this for me as I am puzzled. I thank you kindly in advance for any knowledge you can provide.
As far as your first question, most private disability insurance plans will require that you apply for CPP disability, so that they can reduce their payout to you if you’re approved. As far as what condition(s) qualify for CPP disability, it all depends on how your condition affects your ability to work. Although deafness may limit your ability in your current job (thus you may be approved for LTD benefits), there may be other suitable jobs which you could do (thus you may indeed be denied for CPP disability). As you are realizing, there is not a singular definition of disability.
Thank you Doug, much appreciated. I didn’t even consider that it would reduce their payment to me. Duh moment for me. You have cleared it up for me although I do believe the government should in fact have a singular definition of disability so that everything is transparent and across the board. Thanks again, I didn’t think you would respond so quickly as it took me forever to read all the comments. Have a lovely day.
I was off work for almost 2.years starting in 2011. Numerous medical documents proved I was unable to work. Standard Lifes policy never required me to apply for CPP disability benefits. Regardless, they still denied me LTD benefits that I paid into for 18 years. They were obviously sued and we settled 5 years later. It was a horrible battle. Any insurance company believes they don’t need to pay, regardless of the circumstances. I hear insurance fraud commercials on TV and unfortunately we all suffer from this. In these commercials, they fail to mention what their doing to the insured customers when they know they are required to pay but they simply don’t want too. Not fair when they can get away with it but they complain about fraud.
Anyway, LTD insurers will deduct dollar for dollar that is earned in CPP benefits. It might be best to settle with the LTD insurer first, then apply for CPP disability benefits.
Can you comment on this Doug ? Thanks.
CPP disability benefits allow a maximum retroactivity of one year, so if it did take you 5 years to settle you would have lost 4 years of CPP disability benefits and your CPP retirement pension at age 65 would likely be smaller due to the 4 years of zero earnings while not on CPP disability.
Sorry. I wasn’t working for almost 2 years. Actually it was closer to 1 1/2 years. I went back to work after a year and a half. I worked at modified duties for a year and a half when I was terminated. Was off for another year and settled a year later with LTD.
Does this staggered off and on work have the same affect ? In this case I was off for 1 1/2 years, worked 1 1/2 years, then off for another 2 years.
Also, does EI benefits and LTD benefits affect the amount of CPP disability benefits and CPP pension ?
Whether or not (and by how much) those 3.5 years with zero earnings affects your CPP disability and retirement pensions, depends on your lifetime record of CPP earnings and contributions. This is because the general dropout allows you to drop out the lowest 17% of your contributory years when your CPP is calculated.
Neither EI or LTD benefits affect your CPP disability or retirement pension calculations.
I am 50 years old and have very bad arthritis in my both hands and I can’t do what I’m doing at work anymore an there is nothing else better at work that they give me. I only worked in Canada for 10 years and I don’t have any LTD with my company! Do I am eligible for CPP disability or I have to be 60 years old to be eligible?
Thank you, for all the answers given to people with problems me!
The only age restriction for CPP disability is that you have to be under age 65.
Thank you for your reply!That means at my age of 50, I can apply!
I am receiving my full company pension and a full cppd pension…one does not effect the other or do I have to pay some back….I’m 61…
I recommend that you tell whoever administers your company pension plan that you’re receiving CPP-D, and ask them if that affects what they’re paying you.
I am 56 years old and I live and work on hormon pills from 1993 when I had my pitatuatary gland removed. It’s getting harder and harder working for last couple years. Don’t have energy and even worst handling stress at work. I work and contribute in CPP for 14 years here in Canada and I am wondering can I apply for CPP long term disability?
Hi Vera – If you think your condition meets the “severe” and “prolonged” definitions, then certainly you should apply for a CPP disability pension. Here’s the weblink to apply: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-disability-benefit/apply.html
I’m on CPPD and LTD for four years. I want to change my residency status and move to the country that Canada have social security agreement. Would I be eligible to receive benefits while I reside in other country.
I don’t know about your LTD benefits, but you will continue to be eligible for CPP disability benefits regardless what other country you move to.
I am on CPP Disability since July 2013. I am employed in Canada since December 2005. I get $911/month from CPP Disability. Do you think that my CPP disability payment will affect my CPP payment at the age of 65 years? I mean taking CPP Disability payment is beneficial for me or not?
Receiving a CPP disability pension increases your CPP retirement pension at age 65, but not as much as if you were working and contributing at the maximum level.
I have a question about the calculation of disability benefit. If I’m 36, my contributory months would be until 36 not 70, right? For example, someone who contributed the max from 18 to 36 would receive the max CPP disability benefit if eligible?
Yes, your contributory period would end with the month that you became disabled. So, if you had max contributions from age 18 to 36 and became disabled at age 36 you would receive the max CPP disability pension amount.
In Feb 2015 I was in a vehicle accident, where I broke 1 vertabra and crushed my spinal cord resulting in Carda Enquine Syndrome. I kept my legs but lost all waste management funtions. They don’t expect any return of funtions. I was 56 at the time of the accident. I’m on WCB and I’m going broke rapidly. What are my options.
You should apply for a CPP disability pension ASAP.
Another question for you please:
I stopped working due to a disability in mid 2012 and starting receiving CPPD with an effective start date of April, 2014. I was late in applying for CPPD due to my medical condition and due to my state of mind from when I became disabled to when I finally applied for benefits. I read on the Service Canada website about a form entitled “Declaration of Incapacity” (Form #ISP 1800). This form is not available on the Service Canada website, it is only available by request. This form could allow for a CPPD claim to be backdated to an individual’s original date of disability but I have a feeling that the exceptions made are relatively rare and I have a feeling this form is not often used (otherwise logically it should be available on their website not by request).
I requested the form a few days ago, probably get it in the next week or two. My question: Do you know of anyone that has had their doctor complete this form and been successful in getting their CPPD backdated?
The individual at CPP had no idea of how often this form is used or the % success rate. He did tell me that it is not too late for me to request that my claim be backdated and that any fee that my doctor charges to complete the form will be at my expense.
Thomas – From my experience this form is rarely used, and is much more rarely approved. You must not only establish that you were disabled, but that you were incapable of forming or expressing the intention to apply at the time that you became disabled (and continuously thereafter until you did apply). Examples where this might be approved are where someone experienced a serious brain injury or was in a coma for a long period of time.
If I am receiving $692. cpp disability at the age of 50, and i’m unable to return to work as my disability is severe and prolonged, what approximately would my cpp be when I’m 65?
Elizabeth – Your CPP retirement pension at age 65 will be approx. $294.09 (in 2016 dollars).
Hi Doug, I was wondering if there is any sort of thing like rrsp’s that I can start up that I contribute so much and the govt contribute so much….then, I will have abit extra for retirement.
Elizabeth – That’s beyond my area of expertise, so I’ll leave it to others to respond.
Ok, thanks so much for the information. Much appreciated.
I just turned 60, can I apply for early cpp and disability. I am currently on Aish and have been for 3 years. Which would pay more? Should I stay on Aish or take early pension. I receive 1588 per month but they have decreased that to 1300 because I have a friend helping with yard work etc because I own my own home and he helps me out by giving me 500 per month which is nothing and I give him a room.
Sharon – You can’t receive early CPP and CPP disability at the same time. From a CPP perspective, you’re always better to receive CPP disability than early CPP, but I don’t know how either of those will affect your Aish.
I am 56. I’ve been on long term disability with the same company since 1998. I have been receiving CPP disability & private insurance paid through my company throughout this time.
This year, 2016, I qualify for unreduced pension and I am presently in a position to go forward with retiring from the company within the next month or sooner.
My question is will my CPP disability payments continue to be paid ‘uninterrupted’ as they have been until I reach the age of 65 when they will change to CPP retirement?
will entering into official retirement situation with my company make cause for these CPP disability payments to be affected in any way i.e.. change in amount being paid to me currently etc. Do you foresee the need when transitioned from LTD to retirement a need to contact the Gov’t of Canada to inform of situation?
I am presently receiving $1175/mth gross CPP. Can you tell me how much I might receive at the age of 65 assuming it then changes to a CPP pension payment?
Thank you so much in advance for the generosity in sharing your expertise with so many people entering into the somewhat foreign & unknown financial frontier we call ‘retirement’.
Bruce – As long as you’re still unable to work, your CPP disability pension will continue to age 65 regardless what you do with your company pension. At age 65 it will convert to a CPP retirement pension of approx. $938.09.
Hi Doug I am 35 years of age and have been receiving Cpp-d pension and also on aish since 2011 since the age of 26 I think if my memory serves correct. I also work part time two days a week at a coffee shop. My current Cppd is around 681 currently but it increases a little bit every year. What happens to a persons income in my situation when reaching age 65 while on aish and Cpp-d . I also got re-approved for my disability tax credit certificate a second time and it’s good until 2023 which I need to have in order to keep my rdsp open in which I’m receiving $1000 a year from the government until the last grant money is deposited which I believe to be when I turn 43. What is my best course of action from now until age 65. I don’t know how much is a healthy amount to contribute to Cpp from my pay checks every two weeks in order to get a decent amount of cop at age 65 . And I also get $10 dollars taken off of my Cpp-d payments I receive but am unsure if this does me any good other than getting that money back every year when I file my taxes due to my disability tax credit certificate. I don’t know what happens to a person in my position but my illness is long term and prolonged and expected to last. Any advice would really be appreciated.
Hi Dave if you keep receiving CPP-d until age 65, it will convert to a retirement pension of approx. $267. Just out of curiosity, how much do you make yearly at the coffee shop? Does CPP-d know that you’re working there?
Yes they do know I’m working there. I’ve been reporting my earnings to them since I started my job in 2015. One year I made an income that exceeded the 5400$ they said I was allowed to make , but I was able to contact them in time around December after many failed attempts of trying to contact them due to busy phone lines to notify them of my earnings. I was working three days a week at that time but I needed to slow down and lower my working days to two days a week. So now instead of working the 12 hours I was working on three days a week I work 8 hours a week and sometimes less depending on how slow the store is. I know some people can’t imagine feeling as tired as I feel sometimes from those hours but it’s part of my illness and my job is very exhausting due to the nature of what I do there. Our store gets tdl deliveries of three pallets sent to our store and I have to put it all away by myself on top of doing the audit cleaning I also do.
Hi Dave – It sounds like you’re doing everything according to Hoyle. I was just concerned that you might get an unpleasant surprise one day if your income ever exceeded the Allowable Earnings limit.
I’ll clarify a a little bit. I live in Alberta. My previous job I was at (before I had suffered from burnout and the mental illnessI got diagnosed with) I went on to social assistance but was also getting ei. Once I got approved for aish I was also asked to apply for Cpp disability. Once I got on aish and Cpp disability I did not work for about 5 and a half years and was in recovery mode. When I got on aish in those days that income was only $1188 and obviously my Cpp disability was much significantly less than my 681 I’m getting now. My working income a month is around 550 due to my working the two days a week I have already mentioned. If I stay working my job and paying into Cpp for the next 30 years even tho I work very little, shouldn’t that increase the overall Cpp disability I’m already on?.And if so what income supplements will I qualify for once I reach age 65?(ex/ oas Cpp gis) Also my aish I receive is currently 1019$. The way aish was before they would allow you to earn $800 but I never earned that and now they increased how much your can make to even more. I wish I wasn’t so exhausted all the time and would work a third day if I could.
Hi Dave – You can’t make CPP contributions while you’re receiving CPP disability, because all this time is now being excluded from your contributory period. If you were able to contribute at the level that you’re describing, it would probably reduce your CPP retirement pension amount rather than increase it because the amount is based on your average lifetime earnings, not your total lifetime earnings.
My sincere gratitude for taking the time to address & apply your expertise to my personal situation.
This information has given me added knowledge & confidence to move forward with my decision to retire.
Thank You so much.
After receiving your response to my above question it raised another question related to my case.
Over the period of time that I’ve been off work on longterm disability I’ve been receiving money from both private insurance & CPP disability.
By taking my unreduced pension I would increase the amount of money( gros) I receive per month by $1000 in the form of company pension money in comparison to what I have been currently receiving as disability payment from the insurance company.
Will this increase in ‘income’ from pension payments cause CPP to adjust , specifically lower my CPP disability payment)? If so is there any way of knowing by what amount?
Thank you again in advance Mr. Runchey
Bruce – The amount of your CPP disability payment will not be affected by this increase in your pension income.
Thank you again.
Hi Doug…I’ve been on dissibility for over 10 years now and on LTD thru work and cpp disability..now at age 60 in a few years my LTD will be ending so I will be on cpp disability until 65 and will have my provincial pension plan(reduced)that I will be starting at age 60 also…because I was able to qualify for the disability tax credit I started a rdsp and this needs to be started also at age 60 to 82 or so…
Now my question is ilive in NB..my cpp disability I was told would not be reduced by my nb provincial pension but i’m limited to having 800$/month from my rdsp…is this correct..and this would mean that I can remove 9600$/year from my rdsp(registered disability savings plan) before my other benefits are affected?? Am I mistaken as this is very complicated and i’m being forced to start this rdsp at age 60.Thanks for the info…JEFF
Jeff – Your CPP disability will not be reduced by either your NB provincial pension or your RDSP.
Thanks Doug…very appreciated!!
i have been on LTD for the past 15 years. I waas Military and medically discharged in “02”. Will my cpp’d change when i reach 65 and does it automatically go to a cpp.
Nancy – Yes, your CPP disability pension will cease when you reach age 65 and it will convert automatically to a CPP retirement pension at a lower amount.
another question Doug,
childs benefit- when child reaches 18, what month does child benefit stop.
Nancy – The last payment would be for the month of birth when they turn age 18, but it could be payable directly to the child up to age 25 if they’re attending school or university fulltime.
I just turned 65 and I was on LTD for 8 years,receving CPP Disability of $566. Now that I turned 65 my CPP Disability turned into a CPP of $126. Do you mean I can ask Service Canada to encrease my CPP to 75% of my CPP Disability, that is $566 x 75% = $425? Or what? Thank You
Ness – No, that’s not what I meant. Your CPP retirement pension of $126 is the correct amount based on a CPP disability pension of $566. What I meant by this article is that you were much better off having received CPP disability for those 8 years, compared to if you had applied for your early CPP retirement pension at age 60, in which case you would now be receiving approx. $80 per month (64% of $126).
Thank you Doug. Another question if you don’t mind. I have applied for OAS+GIS, I am into the third month that I should have received it but my file has not yet been processed (due to a missing doc that I sent with delay), and as I mentioned in my previous email, now I receive only CPP of $126 from $566 that I used to receive as CPP Disability. My question is: Can I ask Service Canada to keep me paying full CPPD that Is $566 until I get approved for OAS+GIS? Thank you again.
Ness – CPPD ends at age 65, and it cannot be extended beyond that age for any reason. Provincial welfare is my only suggestion while you await processing of your OAS/GIS.
If you switch to cpp disability instead of cpp at age 60 what happens at age 65 with your regular cpp retirement i have paid into it for over 40 years
Gary – I don’t really understand your question. Can you try rewording it?
In the example with Susan: how much combined is she receiving after she turns 65? Is it just 504.76, or this is in addition to her calculated CPP pension of about $379 (i.e. $850.00 – $471.43) for a total of about $883?
Ticu – In the above example of Susan, her CPP disability pension of $850 ends at age 65 and it converts to a retirement pension of $504.76. That is all that she would receive from age 65 onwards.
I am trying to figure out a couple things. I have been disabled and on CPP Disability for the last few years and am not able to work. I am now a shareholder in a holding company that my husband and I own in BC. Our company owns shares in the business that my husband works at full-time. I, however, do not work at the business. Will dividends that I receive as a shareholder affect my CPP Disability (Maximum for 2016 is $5,400 that I can receive for workingincome without having to tell CPP) or is it considered non-employment income? Also, how about income splitting with my husband for tax purposes? Will that go towards my $5,400 limit for 2016? I am waiting for CPP to call me back but it has been over a week…and I’m still waiting…my accountant doesn’t know the answer and we need to pay our first dividends soon for the company.
Rachelle – Dividend income definitely won’t affect your CPP disability entitlement. Neither should any form of income-splitting, as long as you’re not actually doing any work to earn that income.
Thanks so much! Your help is greatly appreciated!
If the husband dies and he is receiving cppd does the wife automaticly receive something as a survivor?if so how much
Marc – It’s not automatic because there’s a different “minimum qualifying period” for CPP survivor’s benefits than for CPP disability benefits, but in most cases the answer is probably “yes”. The amount of the survivor’s pension depends on a) the amount of the disability pension, b) the age of the wife and c) whether the wife is receiving her own CPP disability or retirement pension (and if so when it started and the current amount). Do you know those details?
No i am still alive lol but my wife is 45 and still working.i have been cppd for 6 months but retoactive from 2013 thanks again
How come Mike got a different answer than Bruce in regards to will his cppd be affected once on company pension. Mike you told to go ask his work HR to see if getting cppd will change his pension yet Bruce was told retirement pension does not stop/change cppd as long as can’t work. Thats my interest as well so confused. Thanks Pat
Mike and Bruce asked opposite questions, so they got different answers.
Mike asked if receiving CPP disability would affect his work pension. It might, so I told him to check with his employer.
Bruce asked if a change to his work pension would affect his CPP disability. It won’t, so I told him that.
I understand now, thanks for your quick response appreciate it.
This has cropped up in several of the answers, but I’d appreciate clarification. I was on CPP disability for 15 years, and the monthly payments were $805. On turning 65, this stopped and the CPP pension is now $445. This is less than I expected. I assume, then, that the pension is based only on earnings and contributions up to the year I became disabled?
Andrew – The period of time that you were receiving a CPP disability pension is excluded from your “contributory period”. This has the same effect as if you had continued to earn and contribute to CPP up to age 65 at the same “average lifetime earnings level” that you had from age 18 until you became disabled.
Hi Currently on cppd and earning 1230 a month. When i turn 65 ( 61 currently) cppd stops and is converted to a lower rate . What would my cpp and old age be worth .?
Gary – At age 65, your CPPD will convert to a CPP retirement pension of approx. $1,011.43 (in 2016 dollars). In addition, you could be eligible for OAS of $573.37 and possibly some GIS (depending on your marital status and any other sources of income that you might have). If you are single and have no other income except CPP and OAS, your GIS would be approx. $218.75.
hi doug my name is dan hodgins i have been on cppd for 20 yrs im getting 1080 .00 per month now on cppd..im turning 65 on sept 2021.how much will i receive reduced????
Hi Dan – Your CPP-D will convert to a CPP retirement pension of approx $759.00 effective October 2021.
ty doug for the prompt reply !!
Hi. I just turned 64 in Sept 2016, I applied and have been receiving my CPP since then at the reduced rate. I have also been off work on LTD since Jan 2014 and will not be able to return to work and plan on retiring when my LTD stops paying me. Can I apply for CPPD now if I qualify and would it be beneficial for me to apply for it, also I have been working full time and contributing since I was 20 years old.
Sandy – That’s a very good question, and you’ll really want to look at all the numbers before you decide. From a CPP perspective only, you’d definitely be ahead if you apply for and receive CPPD, because the amount of the disability pension is more than your reduced retirement pension and it would convert to an unreduced retirement pension when you reach age 65. If your LTD offsets for CPPD, you would actually receive less now for more later. All I can suggest is that you know your numbers and make whatever is the right decision for you!
Thanks Doug for the info just what I was hoping to hear Since I am on my employees LTD it sounds like It will be benaficial for me to apply and hope to be accepted for CPPD now.
Hi, I’m 39 and have been working with a disability for about 22 years and now I cant dew to a severely curved spine. Am I better off waiting for approval from CPP or should I use the welfare disability program.I I can’t wait for long before a check that’s for sure
Jordan – Approval of a CPP disability application is not usually very quick, so if you need money in the interim it’s probably a good idea to apply for welfare disability. They will likely require you to sign a form authorizing CPP to reimburse them if/when your CPP disability is approved.
Can you explain to me how you become undisabled at the age of 65. You lose your disability and go down in income. My disability is progressing and I need more aids which makes it difficult to get groceries and pay bills. I own my house (no mortgage) but cannot pay my property taxes. This does not make any sense to me. I cannot go to the dentist or pay for new glasses. It is hard to get my medications some months.
Hi Doug, I am 50 and have been on cppd for 12 years now and I get $843 a month from cppd plus I am on ltd from my work and when I turn 65 would it go down because of being on cppd or will it stay the same at whatever im getting at that time because reading above it looks like it goes down but on some people you day it will be the same when it flips over to regular cpp.
Tammy – A CPP disability pension always ends at age 65 when it converts to a CPP retirement pension, which is always a lesser amount. In your case, a disability pension of $843 will convert to a retirement pension of approx. $495.
hi there, if a couple is divorced, and one applies for Disability CPP and gets approved, will they get a portion of their ex’s CPP income?
Jacklyn – Not exactly. One of the couple (usually the lower wage-earner) would have to apply for a CPP credit split. The credit split would equalize their CPP pensionable earnings for the years that they lived together, which might increase the amount of the CPP disability if they were the lower-earnings spouse, or it might decrease it if they were the higher-earnings spouse.
I have received a lump sum payment from a Long Term Disability Insurance company. If I’m approved for CPP disability benefits and CPP finds out that I received X amount of dollars from this LTD insurance company, can they or will they deduct an amount as an offset from the CPP benefits ?
Joe – No, CPP disability benefits are not affected by any lump sum disability payment that you have received.
I have been off work since October on EI sickness benefits which are running out. I will not be able to return to work due to my disability. I have worked for the past 3 years and returned to school for the two years before that. Before that I stayed at home with my children for years. Would I qualify since over the last 6 years I have worked 3 years (laid off in summers due to seasonal work),college full time 2 years,and home with children before that?
Anne Marie – It sounds like you may meet the contributory requirements, assuming that you were working and contributing to CPP prior to having your children.
I have received cpp disability payments since age 30, I am 57 now. The amount I receive is $1194. per month. I recently checked out the amount of cpp at age 65 and it will be $345. My question is, can a person pay into cpp while on cpp disability to help increase their amount at age 65
Darrell – Don’t worry, Service Canada’s estimates are wrong when you’re receiving a CPP disability pension. Your CPP retirement pension at age 65 will be approx. $955, not $345.
hi doug,im on pwd for a permanent back problem,3 herniated disks as well as other problems,the province made me apply for early cpp,which is deducted at 462.00 per month from my dissability payments of 986.00,just wondering if i should apply for cpp dissability or whatand will my cpp penshion go down at 65,this is realy complicated,am i better to appl for cpp penshion
Hi Aubrey – What is your age and how long have you been receiving your early CPP retirement pension?
Just wondering if there is a retroactive payment from CPP disability benefits if a persons benefits do get approved ? And is the retroactive payment based on when the person first applied ?
Hi Joe – Yes, the maximum retroactivity for CPP disability benefits is 11 months prior to the month of application.
I currently work for the federal government but have returned to work after being on long term disability paid through Sunlife. I initially returned to work early because my claim was denied when I first was off on leave due to mental illness. I feel that I am unable to work to my employers standard and was wondering if it would be worth my while to apply for retirement due to disability through sunlife or take an early retirement and have a reduced pension. If I was to go off on disability again until I am able to retire, will this affect my government pension? I am 57 years old with 28 years of service. Would I be eligible to apply for CPP at 60? If so, would my disability pension end at that point. Would I still be able to claim my regular pension as well?
Hi Sheri – I’m sorry, but most of these questions could be better answered by your HR advisor.
Hi,Doug Iam recently retired from the govt,after 30 yrs of service at age 55 yrs and will be obtaining a reduced pension. For a few yrs, I have keep quite regarding my anxiety/depression disorder and have never been off on illness.This was due to work stress/violence in law enforcement. Since my retirement date of Jan 2017, My illness is getting worse and gone to the Dr. only once. Iam not motivated to work any more and trying to adjust to a normal life. Will my govt pension be reduced if I am granted a disability pension? I understand I should apply asap. I plan to take regular cpp at age 65.
Hi Gord – Sorry, but you should ask your HR advisor this question.
I’m new to this site. I am 60 years old and collecting CPP Disability. Your article has left me confused. You state that CPP Disability will convert automatically at age 65 without a reduction but later in your piece you give examples of the exact opposite. Could you kindly clarify? Will my CPP remain unchanged when I reach 65?
John – What I mean is that you will get your full age-65 retirement pension without it being reduced by the age-adjustment factor, but a retirement pension payable at age 65 will always be less than the disability pension which is payable up to age 65.
Wondering? Have been receiving early CPP while still working for last 22 months. Will be 63 in May. Have developed a condition that may keep me from being able to work ever again. Can I still apply for disability CPP if it will pay more? And can I get OAS and GIS pension early for medical reasons?
Thanks ahead for any insight.
Ken – Sorry, but the answer is “No” to both questions.
I was in a vehicle accident in 2011. Insurance companies hired private investigators to monitor me with surveillance. Unlucky for them they found nothing to use against me. I actually noticed them and put them on a wild goose chase. ( I just had to put that in). Anyway my question is…
If approved for CPP disability benefits, do you know if CPP hires private investigation companies for the same reasons. ?
Hi Frank – I’ve never known them to hire private investigators, because they have their own investigators.
hello doug .i have been getting worksafebc permenent disability pension it will end when i am 70.what will happend if i get my OAS i am 64 now.will that hasve any effect? thank you
Hi – Sorry, but I don’t know any of the rules regarding WorkSafeBC.
hi doug, i was wondering if rental income would affect my entitlement to cppd and would it have to be below the 5400 threshold, thanks keith
Hi Keith – No, rental income won’t affect your entitlement to cppd and it wouldn’t affect your $5,400 threshold for employment earnings.
Hi Doug, I don’t know if you can answer this question, but I am unable to work been on CPP disability for couple of years. Do you think you are allow to leave the country if you are receiving payment from CPP disability?…
Hi Michael – There are no restrictions on where you live while you’re receiving a CPP disability pension.
Hey Doug, Thanks for your reply! Do you mean you can receive your disability payments outside Canada? or you can just go down south to visit family members during the winter….They don’t do random check with the passport office….Thanks again.
Hi Michael – I mean that it’s not a factor, and you can visit or live wherever you want.
Thanks again. Do you know if it is also the case with private Insurance Company like Great West and others. Thanks again if you know.
Hi Michael – Sorry, but I don’t know the rules around residence for private disability insurance.
I am wondering if you can retire early and still receive CPP disability?
And, do you get both when you do retire at 65 years old?
Hi Lyna – No, you can’t apply for your CPP retirement pension early and still receive CPP disability, and your CPP disability pension ends at age 65 when it will convert to a retirement pension.
I am on disability benefits and now I am eligible to collect my nursing pension. Are my disability benefits going to change if I already start collecting my HOOP pension. I’m now 55 and live in ontario.
Hi Barry – No, your CPP disability isn’t affected by any other pension that you might receive.
I will soon be getting OAS+GIS just over $1000. Still trying to calculate what my CPP will be converting from CPP Disability of 808.26 to regular CPP which is supposed to start on the 28th of this month.
Hi Bob – Your CPP disability of $808.26 will convert to a CPP retirement pension of approx. $440.30. You should contact Service Canada and ask them to send you a form to estimate your income for 2017 after this reduction in CPP occurs, and you should likely then see an increase in your GIS to offset some of this reduction.
Hello can you tell me if I can apply for cppd and getting cpp since June of 2016…just told have stage 4 liver cancer
Hi Selma – I’m sorry, but of you’ve been receiving a CPP retirement pension since June 2016, it’s too late to apply for a CPP disability pension now. In order to be eligible for a CPP disability pension once you’re already receiving a CPP retirement pension, your disability must have existed before your retirement pension started and you must apply within 14 months of receiving your first retirement payment.
Hello, I am 61 years old, born April 1956. Went on early CPP right after I turned 60. Was only working 3 days per week due to what I could do considering my body is suffering from more and more medical problems. I just went to 2 days per week in spring of 2017 and now have COPD as well as radiation induced fibrosis in left shoulder due to cancer treatment, suffer from arthritis in same shoulder, chronic low back pain due to degenerative disc disease, high blood pressure, clinical depression, and nerve pain.
My question is: Would I be able to stop receiving early retirement CPP, then go on CPP disability?
I would really appreciate any helpful information you can provide.
Hi Russell – I’m sorry, but the short answer is “No”. You can only replace an early CPP retirement pension with a disability pension if you apply for a disability pension within 15 months of first receiving a retirement pension AND ONLY IF the disability was preventing you from working prior to when you first started receiving the retirement pension.
Hello Doug, you are a Godsend for answering all of our questions. You add much relief. I was forced to apply for ccpd when on pwd in bc. They now tell me , after first telling me I was not eligible for cppd that I actually am. I will receive cppd of $685 off of my pwd I think.. I am 51 . How much will my cpp be reduced at 65 from forcing me to taking it early at 51. Would I have been better off not qualifying for cppd and just getting pwd in BC. If it is that much reduced, I am kinda hoping for an earlier death as I don’t want be on the street at 65 with a much reduced income. Sounds depressing, I know, but I am also a realist. Thanks Tom
Hi Tom – $685 is a fairly small CPP disability pension, and at age 51 would indicate that your lifetime earnings/contributions to CPP total the equivalent of only 7 years of maximum earnings from age 18 to age 51. If this is correct, it will convert to a CPP retirement of approx. $278 at age 65. If you hadn’t been approved for CPP disability though (but still had no further earnings), your CPP retirement pension at age 65 would have been only appox $200. As you can see, you will be much further ahead at age 65 having received CPP disability rather than not. You are always further ahead receiving CPP disability, instead of just having a year of zero earnings.
Thank you Doug. My psychiatrist whom I have had for 20 years and was the one who suggested I apply for pad in now retired. I have been diagnosed with Adult ADHD, anxiety, and depression. I am very concerned that because I don’t have a family doctor they will take my pwd and ot cppd away from me leaving me with no income. How often do they typically review cases like mine if I never go back to work.Thanks
Hi Tom – It will likely depend on what your doctor indicated as a prognosis on your CPP disability medical questionnaire and/or whatever the typical prognosis might be for your condition. I don’t have a medical background, so that’s a little outside my area of expertise.
Hi Doug, in several instances you indicate an individuals ccpd will convert to cpp at 65 at no reduction in the projected retirement amount. Then you go on to show examples where it will be.
My question is, I am 59 on EI disability payments transitioning to LTD soon. Applying for cppd at approx. $1300 per mo. how much will cpp be at 65?
And will my insurance co. claw back $ for $ before or after tax?
Hi Edward – I think it’s my terminology that is confusing you. When I say that it will convert to an “unreduced retirement pension”, I mean that it won’t be affected by the age-adjustment factor that it would be if the retirement pension began earlier than age 65. The retirement pension amount is always less than the disability amount though, just because of the formulas for calculating those two benefits. The amount that anyone will receive at age 65 will always be reduced from what it was while they were receiving a CPP disability pension, but they’re still receiving 100% of their retirement pension, not a reduced portion of that pension.
In your case, if your disability pension is $1,300.00, it will convert at age 65 to a retirement pension of approx. $1,086.40. The simple formula for this conversion is $1,300.00 minus $485.20 (the disability flat-rate portion for 2018) = $814.80 / 75% = $1,086.40.
Your insurance company will almost certainly clawback $ for $ before tax, but most companies will also clawback that amount if you refuse to apply for a CPP disability pension. And if you don’t receive a CPP disability pension from now until age 65, your CPP retirement pension when you reach age 65 will almost certainly be less than $1,086.40 (it can’t be more than that amount if you have no employment earnings in the interim), because the extra years of zero earnings can hurt you unless you’re approved for a CPP disability pension for that period.
Thanks Doug, that clears things up.
I am 64 years old and have MS.
I took my CPP early at 61.
I worked until July 2015 when I was laid off
Can I still apply for disability CPP
Hi Don – Sorry, but the answer is currently “no”. This issue was included as a proposed change effective 2019 though (read this article: https://retirehappy.ca/proposed-changes-canada-pension-plan/), so if you’re still under age 65 if/when the change is actually implemented, you could be eligible to something at that time.
Hi Doug, my mother has been receiving CPP disability benefits for a few years now. She is currently 59. This is the only income she currently receives each year, about $12,000 annually. We are considering moving her some funds through our family trust by paying a dividend this year. I cant find anything talking about earning investment income (dividends/interest) each year. It seems like it wouldn’t be an issue, but there is nothing in Service Canada/CRA’s FAQ’s on CPP disability benefits that discusses this. Thanks
Hi Justin – There is no need to worry. Investment income won’t affect her eligibility for CPP disability at all. The only factor that would affect her is if she reported employment earnings and/or if her condition improved to the point where she was capable of working.
I’m considering to apply for cppd due to my MS problems. my husband is working and earning about $54,000,00 a year and we have 2 young kids. if accepted on cppd, will my amount be decreased because of my husband income and can I get my kids cppd benefits or not.
Hi Tanya – Your cppd won’t be affected in any way because of your husband’s income, and Yes you will receive a child benefit of $244.64 monthly for each of your children in addition to your cppd.
Doug, I appreciate your help. I’ve read through everything I can, but still not sure about the answer. If you receive dividends from a corporation that you are part-owner of, are those payments considered earned income under CPP Disability? Or is it just the salary that is taken? Thank you so much for your help!
Hi David – If you’re not actively involved in running the company, dividend income would not affect your eligibility for CPP disability.
Thank you Doug, that sounds like a reasonable position – I’m confused why the folks at CPP have not been able to clarify that as black or white. There is nothing on their site (that I can find) that talks to what they consider, specifically, to be earned income. Even our accountant could not got a clear response.
Hi David – That’s probably because it’s not really the income that’s truly a factor, it’s the ability to “earn” the income that’s relevant. Salary or self-employment earnings are generally accepted as proof of the ability to earn income, unless there’s other evidence that proves that there was no real activity occurring that would otherwise have generated such an income (such as with a “benevolent employer”) Most other incomes (like dividends etc) don’t by themselves establish a “capacity to work” that might indicate that the person is no longer considered as disabled under the CPP legislation.
My husband is currently on LTD thru his employer. That insurance company made him apply (and get) CPP Disability starting January/17. Since he’s been getting it the amount from LTD has been reduced by that amount. I get that this way they can re-coup some of their expense. My question is when he turns 60 his LTD ends as he is then eligible to receive his company pension, unreduced (if he applies for it/them). Is he able to collect both his company pension AND CPP Disability Benefits? Or would he have to switch and receive regular CPP (reduced as he’d only be 60) and his company pension(S)?
Hi Jan – Yes, as long as he is still disabled, he can continue to receive CPP disability as well as his company pension. His CPP disability will end at age 65 and it will convert to an unreduced CPP retirement pension.
I receive a cpp disability 1100 a month. I also receive an Ltd for about 1100. I am 63 and have been on a disability for 23. Years. I have a company pension which allows me early retirement and that works out to 2200 a month…I have not applied for it yet. I am thinking of an early retirement pay out.
That would mean I forfeit my Ltd.
1 what happens to my cpp disability. Can I keep that or do I have to change that to early cpp pension.
Can I keep the disability cpp with my company pension and if not can you tell me the amount I would get for a cpp pension.
Hi Elly – Whet5her or not you take an early retirement payout from your company pension will have no impact on your CPP disability (even if your LTD stops). As long as your condition still prevents you from working, your CPP disability pension is payable until age 65, at which time it will convert to a CPP retirement pension of approx. $819.73 (in 2018 dollars).
I’m about to go on disability pension, I’m 50 years old. I’ve been off unable to work for the past 2 years and some change. My insurance is paying 60% of my salary. Once the disability pension kicks in will they pay the difference until 65? Meaning if I’m presently getting 2000$ a month from insurance and my pension is 1300$ will my insurance have to pay the difference (700$)? So I still have my 2000$ a month. Also since my employment is terminated shouldn’t I receive unemployment benefits before, which should be more $$ ?
Hi Jeff – Yes, that would be a typical scenario between private insurance and CPP disability. EI benefits would only be payable if you were able to work but unable to find work, so you would never be eligible for both CPP disability and regular EI benefits at the same time. EI sick benefits might have been payable at the time that you stopped working, but it’s probably far too late to apply for those now.
So basically you’re saying I’ll receive both CPP disability and insurance(LTD) money? Also does it change anything that I will get CPP disability from Quebec?
If you were living in Quebec when you applied for disability and if you’ve ever contributed to QPP/RRQ, you will receive QPP disability instead of CPP disability. The two programs (CPP and QPP) are very similar though, and I’m not aware of any differences that will affect you.
I have been looking for some information regarding CPP disability and have not been able to find it. I have even tried to find it in the legislation. That being said, it may be in the legislation or somewhere on this page, and I am just not understanding it.
Here is my question:
If one is on CPP disability, they are automatically switched to a retirement pension at 65. Essentially, that pension is calculated as the amount they would have received if they were 65 at the time they went on disability… and then that amount is advanced forward by CPI.
What I would like to know is if a person were to go off disability, at let’s say 64 and 6 months, and not start collecting their retirement pension, when they apply at age 65, would the pension calculation go back to the standard calculation (based on last 5 years YMPE), with all months on disability being omitted from contributory months?
It seems to me that if that is the case, their potential benefit could be quite a bit higher, especially if they have been on disability for a number of years?
This looked like a bit of a loophole, so my thought was that perhaps, in order to do that, the recipient would have had to have made CPP contributions through employment after going off disability? Although, possibly not?
Your feedback is greatly appreciated. Thanks!
Hi Lynn – Good question! Unfortunately (or perhaps fortunately?), the CPP legislation did anticipate this situation and it prevents what you are suggesting. Under Section 51(1) of the CPP, if someone receives a CPP disability pension for any month after their 60th birthday, when their retirement pension is calculated earnings for any prior years will be adjusted up to the year that their disability pension started based on the AYMPE at that time and it will be adjusted from there by the CPI increases up to the year that the retirement pension starts. So, in order to accomplish what you’re suggesting they would have to cancel their CPP disability pension prior to age 60. I don’t think there’s any scenario where this would be advantageous.
Thanks for the quick response Doug!!! That’s good to know.
One more question, please… I called call Service Canada at one point, and they indicated that you could actually still defer your pension if you had been on disability and get the actuarial adjustment. They said that because the disability pension and the retirement pension were two different programs that you could do this. Again, I can not find that anywhere in the legislation. Could you please confirm that the information I received from them was correct? Thanks again!
Hi Lynn – Under the CPP legislation, a disability pension always stops at age 65 and always automatically converts to a retirement pension at that same time. There is no specific provision that would allow the start date of the retirement pension to be deferred. There is a general provision however, that allows anyone to cancel any CPP benefit within 6 months of receiving the first payment of that benefit, provided that they repay all such benefits received. This means that someone could wait until after their disability pension converted to a retirement pension, and they could then apply for their retirement pension to begin at any later date and receive the increase based on their age at that later time. They would still be subject however, to having their retirement calculated based on their earnings being adjusted up to the year that their disability pension started and escalated from then based on the CPI increases up to their retirement pension start date. I have asked Service Canada a couple of times whether they would allow someone to request this “deferment” in advance without waiting until they actually received the first automatic retirement pension after conversion and I was told “No”, but maybe they have changed that position now if you were told otherwise.
What you said is correct. They told me that the recipient would have the ability to cancel once it automatically started. Then they could receive the increased pension by deferring.
I realize these probably sound like “out there” types of questions. But I was curious, and in some cases, where there is another spouse with an income and/or pension, it might make sense? I’m sure the likelihood of that scenario is probably low though. Thanks again.
I just received a notice from my QPP disability and what I should get(900$ monthly) is not enough to live on. I was on LTD with Manulife for 2 years. Will they pay the difference? According to my insurance booklet they pay for 2 years. But since I’m forced into disability retirement at 50yrs old are they obligated for the difference till I’m 65? Thank you for the information you are providing for us.
Hi Jeff – It will depend on what type of coverage you have with Manulife, but most LTD plans will reduce what they’re paying you by the CPP amount and they will keep paying you the difference until you turn age 65.
I have been a Correctional Officer for almost 26 yrs. and am less than two years from retirement. I took my CPP at 60 yrs. of age, and am now 63.
Last year I became disabled and on LTIP due to a severely broken ankle which has left me with a plate and a number of screws in the ankle. This has prevented me from returning to my job and thus the Long Term Disability designation.
My question is this… because I took my CPP at 60, does this prevent me from applying for CPP disability benefits? LTIP has sent me a kit to apply but Service Canada tells me I am no longer eligible.
Help … any suggestions would be very much appreciated.
Hi Deb – Yes, because you became disabled after you started receiving a CPP retirement pension, it is true that you cannot be approved for a CPP disability pension. If LTIP is requiring you to apply, just do so and you will be denied. Show LTIP your denial letter and they will likely leave you alone.
Thank you so much for your prompt reply. I appreciate your input.
Hi, Doug,I,ve been on CPPD “LTD” for over 10 years now,i will be turning 65 next Feb. My question, it will convert to retirement pension and can I apply for OAS too ? I am currently receiving $1000.00 per month and what would I be eligable for? Have been in the workforce since I was 16…thanks for your response…
Hi Bil – Yes, your CPP disability pension will cease with payment for the month of your 65th birthday, and it will convert automatically to a CPP retirement pension of approx. $686.40 at the end of the following month. You have to apply separately for your OAS, and if you’ve lived in Canada for at least 40 years after age 18 you will receive $596.67 monthly from OAS. Depending on your marital status and your family income, you may also be eligible for GIS added to your OAS.
OK, thank you Doug, can I apply now for OAS ? and do I go to Service Ont. office to do so ? again ,thanks…
Hi Bil – You can apply for OAS anytime after your 64th birthday, so Yes if you are turning age 65 in Feb 2019 you should apply ASAP. You can apply at any Service Canada location, or call them at 1-800-277-9914 and ask them to send you an application in the mail.
ok, thanks again for the great info….
Hi just wondering if i could get cpp at my age 55.not working have surgeries both hand have severe pain in the neck for arthritis diabetes.thanks
Hi Pearl – You can’t apply for a CPP retirement pension until age 60 at the earliest, but you may qualify for a CPP disability pension if your medical condition is severe enough to prevent you from working. Check out this link: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-disability-benefit.html
I am 53 years old with stenose, servere deformation on my L4 and L5.
Some times I need help to walk. My problem had increase in the last 3 years. I am sponsoring my husband but my doctor want to put me in CPP. I am an E.C.E. do you think I am elegeble?
Hi Dagmar – Your doctor is in a better position than I do judge whether your condition meets the definition of disability for CPP purposes. So if you have enough CPP contributions to qualify and if he’s recommending that you apply, you should apply.
I took my CPP at age 60. I am now 64 and have been on Sun Life Disability since April going through cancer treatments. Sun Life was told when I applied about this. Now Sun Life is telling me to apply to CPP D. My understanding is I will not be eligible for CPP D. Is this correct and if so under what rule.
Hi Kim – You are correct that you will not be eligible for a CPP disability pension, and this is covered by the following section of the CPP legislation:
66.1 (1) A beneficiary may, in prescribed manner and within the prescribed time interval after payment of a
benefit has commenced, request cancellation of that benefit.
(1.1) Subsection (1) does not apply to the cancellation of a retirement pension in favour of a disability benefit
where an applicant for a disability benefit under this Act or under a provincial pension plan is in receipt of a retirement
pension and the applicant is deemed to have become disabled for the purposes of entitlement to the disability
benefit in or after the month for which the retirement pension first became payable.
I had a severe car accident 12 years back and never worked a day .Still i am disable and need help with daily activities. Doctor gave me T2201 form and declared me disable in it. Can i apply for disability. I was working through a temp agency at that time and contributed for only 1 paycheque before this accident happened. Please help
Hi Glen – In order to be eligible for CPP disability benefits, you need to have had sufficient earnings and CPP contributions for at least 4 of the 6 years immediately before you became disabled.
Great website and great info.
So I have a question relating to how to calculate my CPP, when I have been on CPP D permanently with an incurable progressive brain disease.
I have been on CPP D since 2009. I am currently 50 and turn 65 in 2033
My original CPP D amount was $949 per month. It is currently $1,100/month.
Yesterday I logged onto the Service Canada My Account links to see my CPP contributions and it also told me my estimated CPP Pension at age 65 would be $514 a month.
I thought it would be higher or 70% of my original CPP D amount of $949 to equal $700 month?
Or am I completely out to lunch on the math?
I also have a private LTD through my ex employer until age 65 also and it was offset by CPP D in 2009.
Thanks so much for all of the help.
Happy to pay too!!
Hi Drew – Thanks for the positive feedback. Ignore what the Service Canada website says. They will get the calculation right when you actually reach age 65, but they don’t seem to be capable of getting it correct on the SOC or on the website. Your CPP disability pension amount is 75% of what your retirement pension would be plus a flat-rate benefit ($478.03 for 2018). To estimate what your retirement pension will be, you can simply reverse those steps as follows. Retirement pension = disability pension minus flat-rate benefit divided by 75%, or in your case ($1,100 – $478.03) / 75% = $829.29.
Wow thanks so much Doug!
Thats quite the difference!
I’ve read on this site and the Service Canada site that the most or maximum amount of retroactive benefits a person can receive is 11 – 12 months.
Does this depend on when the person first applied for CPP benefits ?
Hi Joe – Yes, the maximum retroactivity is generally 11 months prior to the month of application. For example, if you application is received this month (Dec 2018) the earliest possible effective date would generally be Jan 2018.
Thanks for the quick response.
So a person will never get more than 11 months of retroactive benefits in a lump sum payment ?
Hi Joe – If it takes Service Canada 8 months to process the application (not uncommon) the retro payment would be for 19 months (11 months prior to receipt of application plus 8 months processing time). The only exception to the 11-month limit is if the person were incapable of applying earlier, and there is a very restrictive definition for “incapable”.
Good information Doug.
I understand CPP disability benefits are taxable. Is it just income tax that’s deducted ?
Also, if a person is approved for the Ontario tax credit, would this credit apply to CPP benefits ?
I have been receiving a disability pension from CPP for the last five years (age 60-65) prior to turning 65, last month.
Prior to being on disability, five years ago, I had already met all of the requirements to receive the Maximum contribution rate of 1137.17 (2018). I have all Maximum years except for 2 while attending school, plus 5 years of disability CPP which equal 7 years.
Today, I received a letter stating that my disability pension will stop(age 65)and that my new rate will be 1083.38. This is much lower than the maximum amount of 1137.17.
I find this discriminatory as I had already fulfilled my obligations to receive a maximum benefit. I thought the drop-out provision (8 years) would protect my elegibilty for a maximum benefit.
Should I appeal this decsion or is this calculation right?
Hi John – I’m sorry to tell you that the calculation of your CPP retirement pension is correct. The 2018 maximum of $1,134.17 applies to someone who first starts receiving a CPP benefit in 2018, based on the 5-year average YMPE ending with 2018 ($54,440). In the case of someone who starts receiving a CPP benefit (disability or retirement pension) in 2013, the earnings are escalated based on the 5-year average YMPE ending with 2013 and then escalated to a 2018 value based on CPI increases from 2013 to 2018. The result in comparable to someone who started receiving a maximum CPP retirement pension of $1,012.50 in 2013 and with the 5 subsequent CPI increases they would now be receiving $1,083.22 in 2018. Your result is slightly different due to the fact that your earnings are escalated once with the 5-year CPI increase versus 5 separate CPI increases and the resulting rounding differences.
I don’t know if this explanation will satisfy you, but that is the legislative cause for your benefit amount being less than today’s maximum amount.
Many thanks for your quick response.
Will I be allowed to NOT transition my CPP disabilty pension into a retirement pension at age 65? Also, will waiting until 2019 (a one month break) entitle me to become a new applicant, thereby, using the past 5 years which I collected CPP disabilty benefits to become part of my general drop out provision?
Would I then be entitled to the 2019 maximum benefit amount?
In my case the legislation seems to be working against me as I had met the requirements before becoming diasbled and did not plan on taking am early CPP. John
Hi John – Unfortunately, the legislation specifies that anyone who receives a CPP disability benefit beyond the age of 60 will have their earnings escalated by the YMPE up to the year that the disability began, and by CPI increases from then until whenever the retirement pension begins. Even if you delayed until Jan 2019 you wouldn’t receive the 2019 maximum you would receive the 2013 maximum escalated to a 2019 value based on CPI increases. You would however be eligible for the age-adjustment of 0.7% for every month that you delayed your retirement pension past the age of 65.
You’re correct that the legislation works against you based on the YMPE increases from 2013 to 2018 versus the CPI increases during the same time period. Had price increases exceeded the wage increases during that period of time though, you might be happy that your benefit was indexed to the CPI rather than the YMPE. That is the rationale for indexing existing benefit recipients to the CPI and new benefit recipients to the YMPE.
Thank you for your explanation. I can fully understand what CPP is doing. I am being penalized for being on disability even though CPP words it differently. It’s a play on words on their part and for their benefit. The discrimination of being disabled for 5 out of 47 years is obvious to me. You are very helpful and knowledgeable. Thank you for your time. John
I am on cppd at 52. Will be cpp at 65 be lower than it would have been if I was able to continue to work until 65 and continued to contribute?
Hi Rb – That depends. While you’re receiving CPPD, this time is excluded from your contributory period. That has the same effect as if your earnings from age 52 to 65 were equal to your average level of earnings (relative to the YMPE) as you had from age 18 to age 52. This could be a good thing or a bad thing for you, depending on what your average earnings were from age 18 to age 52 (again, relative to the YMPE) compared to what they would have been from age 52 onwards if you hadn’t become disabled.
Hi Doug. I am 64 years old and am on CPP Disability. I have been told that when I turn 65 that I will automatically receive the regular CPP payments. Can I defer the regular CPP until age 68 or not. My thinking is that if I have no other income I will receive more of a GIS benefit by delaying the CPP benefit. Does this make sense
Hi Keith – I don’t think they will accept such a request in advance, but once you receive your first CPP retirement pension payment, you have up to 6 months to request cancellation of that benefit. You’ll have to repay any retirement pension monies received and you can then reapply whenever you decide the time is right.
Yes, you should receive more GIS as a result of doing this although you will only recover about half of what you give up. For example, if your CPP retirement pension would have been about $800, your GIS will only go up by about $400. Then when you apply for your CPP at age 68 in the amount of approx. $1,000, your GIS will decrease by approx. $500.
Hi Doug thanks for the info. I am married and my spouse Will be 62 years old just after I turn 65. This will make her eligible for the Allowance. I think that by deferring my CPP we will be way ahead as she will get the Allowance of $1144.22 monthly for three years and I will get GIS of $541,22 monthly for three years. At age 68 when i start to receive the CPP I should get approximately 25 % more which should even out the money that I left on the table by the time I reach 75. This seems like a great deal to me, $20,000.00 per year for three years of free money. What do you think?
Hi Keith – You only receive those maximum amounts if you have zero income aside from OAS. Will that be your situation?
I am 62 years old and have been receiving CPP disability since 2005. As of now (January 2019), I receive $1050 a month.
If I understand your calcuation, this means that when I turn 65, my CPP would be approximately. $755 (1050-485/75%).
The CRA website has approximated my payment at $527 , based on “if I was 65 today.”
Did I calculate correctly, and if so, do you have an idea re why the discrepancy between the calculation of the website approximation? Over the 17 years of work between 1989 and 2005, I paid the maximum amount of CPP for all but a few years. Thanks
Hi Karen – If you’re using your 2019 disability amount as being the $1,050 amount, you should subtract $496.36 as the 2019 flat-rate benefit. Your resulting CPP retirement pension should be approx. $738 in 2019 dollars, but Yes, essentially you’re doing everything correctly.
I think you mean the Service Canada website (not CRA). Their estimates don’t acknowledge the fact that you are currently receiving CPP disability. They are aware that their estimates are wrong in this situation, but they don’t seem to know how to fix it.
Thanks Doug. The $1050 is indeed the most recent (2019) amount and yes, I was referring to the Service Canada website, not CRA.
This information was most helpful. ?
My husband called CPP as he has been on CPP disability for 18 + years and turns 65 November 2019 and wanted an estimate of what his CPP would be when his CPP disability ends and he would get CPP retirement benefit. His CPP disasbility is $1,242.34. They estimated it to be $994.64. He was unsure of the amount so called again the next day and they gave him an estimate of $742.32 (quite a difference). I found your website, which is amazing, and calculated it using the formula that you suggested and it is $994.64 (using his current CPP disability benefit of $1,242.34 minus the 2019 flat rate benefit of $496.36, divided by 75%). It is sad that you can get two different estimates from CPP as individuals are trying to budget for the change in their pension. I read through all of your replies and found them very informative. Thanks for all your help.
That is discouraging, Jessie. I hope your I and your husband don’t have problems with this when we turn 65.
Thanks for this fantastic website!!!
I’m 25 years old. Two years ago I started my first fulltime job paying my CPP contribution. One month ago I had an accident and got paralyzed, unable to get back to my construction job. It seems that I do not meet the minimum time requirement to get disability pension. what should I do!
Hi Hasan – You need to have sufficient earnings (at least 10% of the YMPE) in at least 4 out of the last 6 years in order to qualify for CPP disability. If you don’t have at least 4 years of such earnings, unfortunately there is no other way to qualify.
Wouldn’t part time work qualify, assuming that Hasan held part-time jobs before his full-time?
Hi Karen – Yes, part-time work would count if it totalled at least 10% of the YMPE and if he made CPP contributions on those earnings.
I’ve been on LTD and receiving a reduced salary from my employer AND CPP each month for 10 years .
My goal was always to work towards returning to work.
My employer has stated that I will be retiring in a year an a half.
So based on what I have read in this thread ….. am I correct in understanding that
When I retire at age 56 ….. my employer will send me my pension … and will I continue to receive the same CPP that I did before I was told to retire? Additionally – I don’t need to apply for anything as it will automatically continue ?
Hi Melanie – Yes, as long as you are still unable to work, the fact that you accept a retirement pension from your employer doesn’t affect your CPP disability. That will continue until you either regain the ability to work or you reach age 65, at which time it would convert automatically to a CPP retirement pension at a somewhat lower amount.
I am about to turn 54 in April. I went off work November 2016, and although I believed I would return to my full-time position with a crown corporation, it has proven that I am unable to work at any job. I have been through the entire gamut of short term and now long-term disability… It will be two years this coming June I have been on long-term. I just found out today that I have been approved for medical retirement. I would like to ask your opinion, as to whether or not I should be applying for CPPD at this time? I realize that once my medical retirement kicks in, my long-term disability insurance payments will be offset by the difference I’m paid through my medical retirement pension… But again, I’m not sure if I should be applying for Canada pension plan disability as well?
Hi Ian – I don’t know if you’ll be any further ahead in the short-term by applying for CPP disability now, but your CPP retirement pension at age 65 will certainly be more if you receive CPP disability now versus just having zero earnings.
I applied for CPP Disability and was initially denied. I am currently living off my RRSP savings and withdraw annually $50K before taxes. I decided to apply for my early CPP and so that I could stop taking out so much of my RRSP, which has to last me. I have just been informed that my CPP Disability has now been approved so they will convert the CPP to CPP Disability. Since I will be receiving CPP Disability, does this impact how much I can withdraw from my RRSP (which I need to do as I cannot survive on CPP or CPP Disability alone. Thank you.
Hi Ned – No, there is no restriction to how much you can withdraw from your RRSP while receiving CPP disability.
thanks for your speedy response.
My wife is on CPP disability. Can she withdraw RSP savings without affecting eligibility for CPP disability. If so how much?
Hi Virgil – RRSP/RRIF withdrawals do not affect CPP disability entitlement, so the answers are “Yes” and “unlimited”.
But if she has a company disability…it will effect it. So watch out.
Hello, Ive been on long term disability since June 2016 and just turned 60. I am wondering if i apply for CPP disability and am qualified will I no longer qualify for my health and dental plan currently provided by my long term disability insurance company?
Hi Angela – Most insurers will offset for any amount of CPP disability that you receive, but I haven’t heard of any that would also discontinue health and/or dental benefits.
Hi, Doug, thank you for helping so many people with expert knowledge! When I start LTD and CPP disability, I do not need to contribute to CPP. Does the missing years of contribution reduce my CPP retirement pay had I been at work and making the contributions?
Hi Jenny – No, any months that you receive CPP disability are excluded from your CPP contributory period, so those years with no earnings won’t reduce your CPP retirement pension.
Hi. I have a question and quite concerned for my future as I have multiple medical conditions and have been on cpp disability since the age of 43 and I am 50 now. How does it work when I turn 65? I get 720 ish a month now. Please clarify for me and if at age 65 there are any other benefits I will be able to apply for and how low my pension will be by then? What is the GIS and exactly what is it and would I possibly be entitled to that as well? Please help
Hi Ken – When you turn age 65, your CPP disability pension of $720 per month will end and it will be replaced by a CPP retirement pension of approximately $300 per month. If CPP is your only other income at that time, you would also become eligible for a combined OAS/GIS amount of approximately $1,316 monthly.
Thank you so much
My husband stopped working 2 years ago due to illness and took company pension because he couldn’t work anymore. He is receiving a company pension and was thinking of taking his CPP next year at age 60. Can he apply for CPP disability instead of his pension even if he’s receiving his company pension?
Hi Mariana – YES, if he’s unable to work because of his condition(s), he’s much better off (at least from a CPP perspective) to apply for a disability pension instead of an early retirement pension. The fact that he is receiving his company retirement pension is not an issue for CPP.
Thank you for the quick response!
Hi Doug – i have worked for approximately 15 years but have no been on disability for 15years and i am 56.my condition will never allow me to work. i receive approx 2000/mth. My LTD plan through my place of employment is integrated with CCPD and they both pay approx 1/2 of that total each.So with mt CCPD being $1000.00 right now,once I retire at 65 I am wondering how much it would reduce since I will have been on Disability longer that my years employed. Hope this wasn’t too confusing. Thanks.
Hi TJ – A CPP disability pension of approx. $1,000 monthly will convert to a CPP retirement pension of approx. $672 at age 65.
Thank you Doug! Although I have had a well known Financial Company for years, they have never been able to give me a definitive answer except to say that it will pretty much be reduced to nothing. I really appreciate your time and response! Have a good day.
Good day Doug,
Great site. My wife is legally blind degenerative Retinitis Pigmatosa and wants to apply for C.P.P. disability, she owns one property that she wants to hold the mortgage for with the current tenants , and another property that is on a 15 year rent to own agreement. Cannot find clear answer anywhere regarding if this will be considered income. My best understanding is it should not affect C.P.P. disability as she cannot physically work at a job, is this correct.
Your time is appreciated
Hi Richard – As long as she’s not claiming the income as self-employment, it won’t affect her CPP disability at all. If she is claiming the income as self-employment, it may trigger a reassessment and she would have to explain how much (or how little) active management is involved in earning that income.
Thank you for your reply Doug, I also am eligible for C.P.P.disability after meeting with my doctor yesterday, many health problems after 35 years in construction which I can no longer do, I am 59 years old. I also day trade stocks, how does profits from day trading affect C.P.P. disability, or does it not affect eligibility. It is a private account not a business.
Hi Richard – If you don’t count the profit as self-employed earnings, it won’t directly affect your CPP disability. If however your activity is deemed to be equivalent to working, that may be seen as regained capacity to be employed and could result in a denial of CPP disability.
My husband had a stroke in 2016. He went on Short term disability and then it went to long term. He has been on long term disability being paid through his company’s insurance plan since the stroke. His company’s insurance made my husband apply for the disability CPP benefits at the end of last year. A lump sum was paid to the insurance company. Does my husband have to cover the taxes paid out to the issuance company for the lump sum?
Hi Nat- Unfortunately, the short answer to your question is “Yes”.
HI DOUG I AM RANDY CONFUSED. I HAVE BEEN ON CPP DIS. 13 YRS NOW AND BARELY GET BY EVERY YR RUNNING MY HOUSE IN N.S. SINGLE AND CANT TAKE A BORDER,EARN A CENT AS I GET BIT HELP ON INCOME ASSISTANCE WITH FIRE INS, SPECIAL NEEDS. MY PENSION JUST WENT OVER THE $800 MTH AND IT EFFECTED THE SPECIAL NEEDS FUNDS TOO. I WAS GETTING 43 OF 335 NOW 22 WAS TAKEN OFF THE 43. MY LONG TERM WORRY IS WONDER HOW MUCH I MAY GET IN 4 MORE YRS MARCH ILL BE 65 AND DUNNO WHAT ILL GET? SOME PPL SAY HELPING AMOUNT BUT I AM WORRIED CAN I KEEP HOLD OF MY FAMILY HOME THAT LONGF. GUESS I GET OLD ASGE TOO IF I LIVE. I BROKE MY NECK AND BACK AND I DON’T KNOW IF I CAN OR WANT TO LIVE HERE ALONE IS ALL. I NEED HOPE.
Hi Randy – If your CPP disability pension is currently just over $800, it will convert to a CPP retirement pension of approx. $405 effective the month following your 65th birthday. As you suggest, you will also become eligible for OAS at that same time, and the monthly amount of OAS is just over $600, if you’ve lived in Canada for at least 40 years after age 18. You should also likely be eligible for GIS, but I’m not sure what will happen to any/all of your provincial benefits.
I MEANT,ALL I WANT IS TO LIVE HERE ALONE TILL I DIE,NOT SOME HOME THAT EAT UP ALL WHAT I HAVE TO SELL IT FOR IN NO TIME, LIKE TO LEAVE TO MY GRAND TWINS.
If you are receiving C.P.P. disability, can you still have a small company like an online business to make some extra income? If so up to how much can you make without it effecting your disability.I cannot work full-time with my disability as I cannot stand,sit or crouch for more than 20 minutes at a time, and cannot survive on disability amount I am receiving. An online businesses a possibility to generate some extra income.If there is a limit of income can you go off disability and be reinstated for the months you do not make over the threshold.
Hi Natalia – CPP disability has an “allowable earnings policy” that would allow you to work and earn up to $5,700 per year without jeopardizing your disability entitlement. If you’re considering starting your own company however, I’d recommend that you check with Service Canada before doing so, because self-employed earnings may not be given exactly the same consideration as wages. You cannot go off and on CPP disability depending on the amount of earnings you might have.
Doug is this correct that you cannot or is this a typo, “You cannot go off and on CPP disability depending on the amount of earnings you might have.” Thank you Natalia
Hi Natalia – This was not a typo. Eligibility for CPP disability is based on your lack of capacity for work in the long-term. It cannot be switched on and off based on short periods of capacity/incapacity.
Hi Friends, just a quick question for all of you. I’m currently on Ontario Disability after spending some time in hospital as a result of a diabetic condition I didn’t know I had (type 2). As it turns out, I’ve had this condition for probably the last 10-15 years and wasn’t aware of it and was always dismissing the effects as a result of sedentary work (12 hours per day), the fact that I smoked and lack of better diet because of shift work and length of shift work.
During the hospital stay it was also discovered that I had hep C, which blew my mind as I’ve never involved myself in any activity that would lead such a disease. BUT I did have minor surgery which was botched by an Ontario surgeon and some time in and out of hospitals to clear up white cow and allow the surgical wound to heal from the inside out, so the exposure to the hep may have come through this.
Anyhow, the hep c is gone (cured) but there is _some_ damage to the liver and I’m also living with type II diabetes which causes other issues with the heart, etc.
Do you feel that under these circumstances I may eligible for CPPD? I’ve been employed, paying into CPP for at least 22-27 years. Currently receiving ODSP. What would be the benefits to me If I apply for and accepted onto CPPD?
Hello Doug – So much information – where does one start? I am 59 years old. I am collecting CPP disability benefits of $1293.97 per month in addition to an independent insurance payment from my employer.
1. Can I work part-time while collecting CPPDB?
2. Should I collect regular CPP at age 60? If not, then…
3. What will I earn starting at 65?
Thank you. Jennifer
1. CPP disability has an Allowable Earnings policy which allows you to earn up to $5,500 (2018 rate) without any danger of losing your eligibility for CPP disability. Once you have earned over that amount in any calendar year however, you must advise Service Canada and they may discontinue your CPP disability payments if they feel that you are capable of earning a “substantially gainful” amount.
2. You cannot receive your CPP retirement pension while you’re receiving CPP disability.
3. If you continue receiving CPP disability until age 65, it will convert to a CPP retirement pension of approximately $1,063.48 at age 65 (in 2019 dollars).
If you are approved, collect CPP disability benefits and you pass away, does your spouse receive survivor benefits based on the amount of your monthly CPP disability payments?
Hi Jeff – No, the amount of the survivor’s pension would not be based on the amount of your monthly disability payment. The survivor’s pension would be based on your “calculated retirement pension” at the time of your death.
If I’m on ywcb, Yukon wcb, and cannot return to my job ,am I able to use cppd ,until I turn 65. I am 60 yes old now.
Hello, if someone is on CPPD for 20 years and is now 55 and wants to collect on their company pension in addition to CPPD, are you restricted to $5500 per year collecting company pension? If you end up collecting more than $5500 per year on your company pension would your CPPD be reduced? Thanks!
Hi Megan – The “$5,500” limit applies only to earnings from employment and not pension income. You can receive any amount of pension income without it affecting your CPPD.
My wife is on CPP Disability, she is still technically employed but off work with no LTD and is getting close to retirement.
If she retires from her job and accepts the company pension, can she keep CPP Disability or will she lose it?
Hi Joseph – As long as she remains incapable of working, accepting the company pension will not affect her entitlement to CPP disability benefits.
So this is for my mother!!! Im not really familiar with this ccp stuff. But she has been off work for about a year now due sever issues with her back. She is on long term care with GWL. Now they have send her a letter stating she may qualify for CCP disability. What is the difference between disability ccp or the regular ccp? Also from what I’m reading above you receive more on disability ccp and when you turn 65 its a little less? Does taking disability ccp at age 60 effect your amount when you turn 65? So after 65 you cant get disability ccp..right? If you can answer these questions for me that would be so helpful.
Thank you so much
Hi Seni – If your mother is unable to work due to her back issues, she should definitely apply for CPP disability. She won’t be further ahead now because GWL will decrease whatever they’re paying by the amount of the CPP disability, but your mother’s CPP retirement pension will be more when she reaches age 65 than it would be if she doesn’t receive CPP disability in the interim.
I have just been approved for AISH. I am almost 63 years, and am currently unemployed and have zero earnings. Would it be in my best interest to go through the appeal process for (Request for Reconsideration ) for my CPPD application that was denied? Would my retirement pension (CPP) be better if I also am receiving CPP disability benefits and with zero earnings?
Hi Shiela – Yes, your CPP retirement pension at age 65 will be higher if you’re approved for CPP disability now instead of just having zero earnings.
Is the CPP disability benefit calculated on 75% of your current CPP retirement pension or your projected pension at age 65?
Hi Jay – It’s based on your lifetime average earnings up to your current age (without applying any age-adjustment factor), so to me that’s the same as saying your projected pension at age 65, assuming that your future average earnings would be similar to your current lifetime average earnings (relative to the YMPE).
I applied for Cpp disability in 2012 and was denied Dr told me because i was too young (40). I am collecting a disability pension from Ford and Canada life which I thought was for life but recently found out that I will be losing the Canada life supplement in another 10 years. My Question is can I re apply for CPP Disability after being denied in 2012 ? I read on their site that there is a one year time limit for this and I have missed it by 7 years. Any info would be greatly appreciated. Thanks
Hi Nicole – There is a one year time limit as far as retroactive payments, but there is no time limit for applying. The problem that you might have is that you have to establish that you have been disabled continuously since you last met the contributory requirements for CPP disability benefits. Depending on when you last worked and contributed to CPP, that might mean that you would have to prove that you were disabled back as far as 2012, even though they will never pay back that far.
I am currently on Manulife Long-term Disabilty which will end in 2 years. I will be 55 in 2 years and can retire with HOOPP pension. What are my options when Manulife LTD ends? Can I claim CCP Disability and HOOPP same time?
Hi Charmaine – If you’re unable to do any type of work currently, from a CPP perspective you should probably apply for CPP disability right now, otherwise your eventual CPP retirement pension is shrinking with every additional year of zero earnings unless you’re receiving CPP-D.
My wife is 53 and going through the process of applying for CPP disability. So we have a couple of questions, if she is approved.
1. Would she stay on the CPP disability until 65? CRA says her disability amount would be. $1252.52
2. How will not working/contributing anymore, impact her CPP benefit when the disability converts to straight CPP if that happens at 65? Her current CRA amount for CPP at 65 is $995.64.
Thanks in advance for your time and help
Hi Ken – In response to your two questions:
1. Yes, if she remains disabled until age 65 she will stay on CPP disability pension until age 65.
2. Not working while receiving CPP disability does not affect the amount of her retirement pension, because that whole period of time is excluded from her “CPP contributory period”. When she reaches age 65, the amount of her CPP retirement pension will remain at $995.64 (in 2020 dollars).
I have been approved for a CPP disability pension. My question is related to the effective date of the CPP approval. Mine was backdated by 1 year, so a lump sum payment will be provided to GWL, who have been providing me a disability benefit until now. My regular pension (taken early) contains a bridge payment portion which was not effected by the GWL benefit. The bridge portion is effected when the GWL benefit changes to CPP benefit and because the CPP approval was back-dated, I’m told I have to repay the bridge portion received for the last year. The dollar amount to be repaid is essentially equal to the GWL benefit received during the period, giving me net zero for the year. Here’s the question, does CPP have to backdate the approval? if is was approved effective immediately, the bridge portion would stop on my regular pension now and I would have nothing to repay. Thanks, Cathy
Hi Cathy – Unfortunately, there is no flexibility in the legislation for you to request a delay in when your CPP disability pension is effective. On the good news side though, it’s likely that your CPP retirement pension at age 65 will be higher due to your retroactive CPP disability payment, compared to if you had no earnings and weren’t in receipt of CPP disability for that year.
Hello, . I have been on LTD Disability for a long while and collecting CPPD; I have been given retirement options from work which includes applying for Disability retirement pension. The application states I can not be in receipt of benefits from any disability benefits plan. would that include CPPD? Or is it exempt of any offset/reduction or termination?
Hi Dee – You’d have to check with whoever administers your Disability retirement pension to see what happens if you’re receiving CPPD.
Hello Doug – could you tell me, if someone receives a retro-active lump-sum Disability Benefit payment from Service Canada, would it retro-actively mess up the Allowance benefit payments they had been receiving over the past couple of years? Would they have to pay back the Allowance payments they got in those years, now that’s it’s understood their income ought to have been higher from the Disability Benefit side, and now they’ve got the money? Or perhaps the arrival of the lump-sum amount now might just be used in the Allowance benefit calculation as of next July? The CRA’s “most beneficial calculation” way of treating Disability retroactive lump-sum payments is what’s in my head.
Thank you for any guidance you can provide. (Your site is wonderful, by the way.)
Hi Ray – For GIS purposes, income has to be declared in the year that it is actually received. The good news is that means no overpayment to recover. The bad news is that means that they will likely receive much less Allowance/GIS for the year from July 2021 thru June 2022.
I am currently receiving CPP disability. I am thinking of moving to Europe for several years or maybe permanently. My question is: Will I be able to keep my CPP Disability and continue receiving it while living in another country? And what are the conditions?
Hi Emily – Yes, you will be able to keep your CPP disability pension until age 65 regardless where you live, on the condition that your condition continues to make you incapable of working.
Thank you so much for your response Doug!
Do you think Service Canada will accept medical notes from my doctor in Europe?
Hi Emily – Yes I do.
Thank you Doug! You have been most helpful.
Hi, I have been on LTD for three years, and just turned 50. I am now eligible to take a reduced pension from my Fed Govt employment. My questions are as follows:
1. If I take a reduced pension from my employer, do I have to inform the insurance company of this income?
2. Does taking the pension impact my LTD benefits with the insurance company?
3. In general, is it better just to stay on LTD and let me pension sit (as I don’t currently need the income) and grow?
Hi Doug, I am 64 yrs. old and receiving CPPD of $1337, how much CPP will i receive at 65? thank-you
Hi Sham – Your CPP retirement pension at age 65 will be approx $1,108.28 (in 2020 dollars).
I’m 55 and I am on long term disability for the past year, they want me to apply for CPP Disablity. If I go ahead with it will it affect the amount I would get for my CPP when I turn 65?
Hi Carolyn – Yes, if you are approved for CPP disability (CPP-D) that will increase your age 65 CPP because any months that you receive CPP-D are excluded from your contributory period so that they don’t reduce your average lifetime earnings the way that zero-earnings years would if you weren’t receiving CPP-D.
Hi Doug, I have been diagnosed with anxiety, my doctor wanted me to go off work last year full time on a leave, but I was reluctant as I thought I’d feel better, and things would improve at work. We are understaffed and with Covid the workload has increased. Now I am working part time and just started collecting EI sick leave to fill in a few hours, I don’t feel any better, my doctor again feels I should go off full time. Can I apply for CPP disability, I am 59 this year. Thanks
Hi Cathy – Yes, you can definitely apply for CPP disability.
I’m 54 and almost 3 yrs ago I retired with a company pension. I had planned on taking a couple of yrs off and then return to the workforce. Covid hit last year and delayed my plans to return to work. Over the past year I’ve had increased physical issues with my hands, wrists and shoulders.
I currently don’t have a family doctor and haven’t been to see anyone about my current physical condition. I am scheduled to sit down with a doctor next week but I’m not sure if that, considering my timelines, will be of any benefit to my case.
Am I able to apply for CPP-D if my situation worsens even though I currently collect a company pension ?
Hi Jeff – The company pension is not relevant, so Yes you can apply for CPP-D as long as you still meet the contributory requirement of contributions in 4 out of the last 6 years or 25 years of contributions with at least 3 out of the last 6 years.
Doug: My daughter is on a disability pension at age 56 and is also receiving a survivor benefit. She will become eligible for GIS and OAS at age 65 and also for her own CPP pension. You state that the disability pension is “automatically” changed to a regular CPP pension at age 65 but this would reduce her GIS by 50% of her CPP pension AND also reduce her survivor pension, as discussed elsewhere in another of your online posts.
She had planned to delay collecting her regular CPP pension until age 70 (having sufficient TFSA funds to bridge the gap for 5 years between her OAS/GIS plus her higher survivor pension when her disability pension stops at age 65). Can she delay receiving her CPP pension up to age 70 by request to CPP before reaching age 65 even though she is currently receiving a disability pension?
Hi Denis – It seems to depend on which Service Canada agent you get if you ask whether this can be done in advance of reaching age 65, but it can definitely be done after she turns age 65 and receives her first CPP retirement pension. She has up to 6 months after receiving that first payment during which she can request cancellation of the retirement pension. She would also have to repay any retirement pension that she has received. She can then apply for her CPP retirement pension at age 70 or at whatever age she chooses.
Hi Doug: Thanks very much for your speedy response. This leaves hanging the effect on her pre-existing survivor benefit which will be substantially reduced if it is recalculated at age 65, if she is forced to start receiving her regular CPP pension at age 65. Part of the attraction of delaying receiving the CPP pension to age 70 is to maintain the higher <65 survivor pension as discussed with Adrian in your other online post (https://retirehappy.ca/cpp-survivor-benefits/), even though this pension would negatively affect her GIS benefit. Do we know if she opts to delay her CPP to age 70 AFTER (perhaps) being forcibly made to receive it at 65, before then delaying it, whether the recalculation of her survivors benefit will be reversed??
A difficult question I know but I have to ask!! Thanks again
Hi Denis – Unfortunately, the CPP survivor’s benefit will be recalculated when she turns age 65, regardless whether the disability pension converts to a retirement pension or not. She will receive the full >65 survivor’s pension if she isn’t receiving the retirement pension, but she can’t receive the <65 survivor's pension when she is >65.
Hi Doug: Sorry to have to query you one more time but your answer that “.. she can’t receive the 65” does not seem to be in agreement with your comment to Adrian in that other article where you indicated that “The combined benefit calculation occurs only once you’re actually receiving both benefits, and I agree with you that this generally changes the break-even calculations in favour of taking your CPP at age 70”. Have you since become aware that indeed the CPP survivors benefit will ALWAYS be recalculated at age 65 regardless of whether or not you receive the CPP pension at age 65?? Recalculating the survivors benefit at age 65 regardless of other considerations perhaps seems logical but it does greatly impact the decision regarding delaying the CPP pension to age 70. (I feel a bit like a dog with a bone on this one but hopefully your reply will end the discussion – although it is nice to touch base with you again after your help in the other article some years ago now). Thanks Doug
Hi Denis – There are two totally different recalculations that can occur to a CPP survivor’s pension at age 65. One that you can control and one that you can’t. If you re-read the survivor’s article, there are two basic formulas for the standalone survivor’s pension. There is the under-65 formula of 37.5% plus the flat-rate benefit and the over-65 formula of 60%. That recalculation will occur when someone reaches age 65 regardless what decision they make on when to take their own CPP retirement pension. That recalculation can produce either an increase or a decrease to the standalone survivor’s pension amount.
The second possible recalculation is the combined benefit formula, and that one will occur only if you are receiving your own CPP retirement pension. That recalculation is always a decrease.
Hi Doug: AHA….. I missed those two very different scenarios. Average SP 65, provided no personal CPP pension taken. Result is a reduction in SP from $457 to $416 at age 65 onwards until say age 70 when must take personal CPP, then a second combined recalculation will be made resulting in a further reduction in Survivor Pension. By Jove I think I’ve finally got it!!
Thanks again Doug.
Thank you for the great site and all the help you provide. I am currently receiving the max amount for CPP disability. I am wanting to know if the time while on CPP disability would adversely affect the amount of my future CPP pension and is there any way of knowing what my CPP pension amount will be?
Thank you for you help
Hi Steve – Any period of time that you are receiving CPP disability will be excluded from your contributory period. This means that if you keep receiving CPP-D until you reach age 65, your average lifetime earnings will remain at the maximum level. The only way that this can affect you negatively is that when your CPP retirement pension is calculated, the earnings will be escalated based on the average YMPE at the time that you became disabled, and they will be escalated based on CPI increases from that point forward. This can be either a positive or negative factor, but lately it has been more negative than positive.
To estimate your CPP retirement pension, subtract the disability flat-rate benefit ($510.85 for 2021) from your CPP-D amount and divide the remainder by 75%. For example, if you were receiving CPP-D of $1,413.66, it would convert to a CPP retirement pension of $1,203.75 ($1,413.66 – $510.85 = $902.81/75% = $1,203.75).
I’ve been on CPP-D for 20 years and receive $1200/month.
When I go to the My Service Canada site and use the CPP Retirement Estimator it shows:
At 65 years old I will get approximately $500/month. (At 60 years old – a little over $300 with the 36% reduction)
Obviously this does not match the formula of subtracting the base amount and dividing by .75 of that result, which would be approx. $900.
It’s quite a large difference.
How confident can I be in using the formula – which results in approx. $900 – versus the actual website estimate of $500?
Thanks for your help.
Hi MIke – You can be 100% confident in that formula. Service Canada seems totally incapable of rectifying this error in their estimating system, but they will get it correct when your CPP-D actually converts to a retirement pension.
I’m in the same situation as the previous question so thank you for sharing something I’ve tried to sort out for years. The formula at 65 .
My other question is, would I be eligible for any further benefits from CPP?
Hi Harold – the only further CPP benefits would be survivor benefits if/when you die.
I have a question. I am on CPP D and have been for many years and in addition I receive a wage replacement amount (much less than actual salary). I received my annual benefits statement with my EURD and 35 year date and my 65 year date along with the amounts I will receive from my company pension plan which I paid into for many years and was fully vested in. Those amounts are significantly higher than the wage replacement insurance payments I receive. Would “retiring” age early and starting to receive my annual pension at the higher rate affect my CPP disability payments?? In other words, should I switch over for early age retirement??
Hi – I can’t tell you what you should do, but I can assure you that your CPP disability will not be affected if you decide to start receiving your pension income.
Nice that a person such as yourself spends the time to answer these questions. I am on C.P.P. disability am legally blind with degenerative eye disease. I know many people are going to be mad at this question, but will ask only because doctors have told me I will be totally blind in another 2-3 years, and want to enjoy while I still can. I am 56 years old now. My husband has to assist me everyday now. Can I still collect C.P.P. disability and live in another country.
Hi Natasha – Yes, as long as you are still disabled, you can receive CPP-D wherever you choose to live.
I have been approved for CPP disability 12 months ago. I have stage 4 lung cancer which recently showed metastasis. Can I apply to switch from CPP D to CPP retirement, so that if I die before age 65, my spouse will be entitled to survivor pension? With CPP D, if I die before age 65, CPP benefits will just cease.
Thank you in advance for your reply.
Hi Judith – My sympathies with your illness, but please be assured that your spouse’s entitlement to a CPP survivor’s pension is not impacted at all (it is certainly not eliminated) because you are receiving CPP-D.
Thank you for replying. For clarification, if unfortunately I will die before I reach 65 yrs of age meaning I would still be on CPP-D at time of death, what happens to my CPP-D. With your reply, will that mean that my spouse still be entitled to receive survivor’s pension even if I die before I reach 65?
The reason for my question is I am thinking of switching to CPP retirement at this time so that it can continue as a survivor’s pension as i’m not sure if i am still alive until my 65th birthday. Thank you so much again.
Hi Judith – Yes, your spouse will be eligible for a survivor’s pension if you die while still receiving CPP-D.
Thank you Doug for that clarification. It puts my heart and mind at ease to know this. All the best to you.
Hi Mara – Assuming that was the gross monthly amount of your CPP-D in 2022, your retirement pension at age 65 will be approx $760 per month (in 2023 dollars).
Hello Doug, and thank you for all you do. I receive CPP Disability and tax software shows my husband should split his small pension since he also is still working elsewhere. This would increase my earnings on paper, as I won’t officially earn it. I called CRA but no real knowledge, yet he advised we not not split . How will this affect my current LTD and/or my CPP retirement amount in the future? Negatively? I am 63. He is much 68.
Hi Beth – There would be no impact to your CPP disability or retirement benefits, but I can’t comment on your LTD.