Personal Finance

Early Retirement Pension and Disability

  • Last Updated:
  • Sep 15th, 2017 5:37 pm
[OP]
Newbie
Sep 13, 2017
1 posts

Early Retirement Pension and Disability

Would appreciate any input here. My spouse will be turning 60 this yr. He shows signs of early-onset dementia and might qualify for disability (he has already been severely restricted in what he can do at work). He is eligible for an early retirement pension through his workplace and we have inquired and been told that there is no benefit to taking a disability pension over an early retirement pension with his work plan. Therefore, he will probably just take the early retirement. It does sting, though, as he had planned to work to 65 and then retire (with more credited service, he would have a higher lifetime pension). We don't know what to do here. If he tries to apply for CPP disability or any other type of disability plan in Ontario, will he be limited or denied if he has already taken an early retirement? Thanks.
4 replies
Member
User avatar
Jan 19, 2006
468 posts
270 upvotes
BC
If he has LTD benefits he may be able to utilize this ahead of either pension.

This would allow him to continue to contribute and build his pension. After a period of time LTD will want to him to transition to either pension.
Deal Fanatic
Feb 15, 2006
8715 posts
3171 upvotes
Toronto
trimmer164 wrote: Would appreciate any input here. My spouse will be turning 60 this yr. He shows signs of early-onset dementia and might qualify for disability (he has already been severely restricted in what he can do at work). He is eligible for an early retirement pension through his workplace and we have inquired and been told that there is no benefit to taking a disability pension over an early retirement pension with his work plan. Therefore, he will probably just take the early retirement. It does sting, though, as he had planned to work to 65 and then retire (with more credited service, he would have a higher lifetime pension). We don't know what to do here. If he tries to apply for CPP disability or any other type of disability plan in Ontario, will he be limited or denied if he has already taken an early retirement? Thanks.
It'll be easier to answer if you can describe what kind of health coverage there is, during retirement, vs "Disability retirement". Some companies do NOT have any coverage for retirees, some have partial, and some have excellent coverage. Some have conditions, such as how many years of service, and/or age (maybe + years of service) requirements.

Only you know, or if you don't know, it's time to find out all the details.
Deal Guru
May 29, 2006
10071 posts
2662 upvotes
would you just go on LTD with your company? if i got injured/major sickness tommorow, i go on LTD until i can return to work.
Deal Fanatic
User avatar
Dec 27, 2009
7080 posts
4230 upvotes
Victoria, BC
I would probably do the LTD first (and they will likely force him to apply for CPP disability benefits). I am terribly sorry for what you are going through by the way. 60 is awfully young.

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