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HOOPP

When Can I Retire?

When Can I Retire?

What does your retirement look like? Whether you retire early or late, decide to travel or stay close to home, you will make some big financial decisions. You can depend on your HOOPP pension to provide you with a predictable monthly income in retirement, but you also need to consider how it will fit into your larger financial plan. The earlier you start planning, the more likely you will be financially prepared for retirement.

We are here to help you prepare. With HOOPP, you can retire anywhere from ages 55 to 71.

At what age can I retire?

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Retire as early as 55

You can retire early at age 55, however, your pension will be reduced to reflect the fact that you will probably receive it for a longer period of time. Your pension will not be reduced if you have 30 years of eligibility service.

Bridge benefit
If you retire between the ages of 55 and 64, you will receive a monthly bridge benefit in addition to your HOOPP retirement pension. The bridge benefit is temporary; it is paid until age 65 because that’s the age when the Canada Pension Plan and Old Age Security typically begin.
> Learn more about the HOOPP bridge benefit.
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Bridge benefit
If you retire between the ages of 55 and 64, you will receive a monthly bridge benefit in addition to your HOOPP retirement pension. The bridge benefit is temporary; it is paid until age 65 because that’s the age when the Canada Pension Plan and Old Age Security typically begin.
> Learn more about the HOOPP bridge benefit.
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Work until age 60

At age 60 you can retire without any reduction to your pension. You will also receive a monthly bridge benefit in addition to your HOOPP retirement pension. The bridge benefit is temporary; it is paid until age 65 because that’s the age when the Canada Pension Plan and Old Age Security typically begin.

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Retire later

If you work past age 65, you can keep contributing to HOOPP and build benefits until Nov. 30 of the year in which you turn age 71. Pensions that start after age 65 are also increased to reflect the fact that you are starting your pension payments later.

Refer to the Retirement Table for more information.

How much income will I need in retirement?

 

When estimating your retirement income needs, start with your current take-home pay.

The general rule suggests that you will need about 70% of your pre-retirement income to live comfortably when you retire. You may need more or less than that, depending on your lifestyle, hobbies, and overall financial situation.

For example, you may only need half of working income if you retire soon after paying off your mortgage. On the other hand, if you have expensive hobbies, plan to travel and have a mortgage, you may find that you need to maintain your level of your pre-retirement income.  

Remember, your retirement income won't include deductions such as pension contributions, and employment insurance contributions. You can also typically expect to pay less income tax in retirement.

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How do I choose a retirement date?

 

In general, the later you retire – or the more service you have – the larger your pension will be. To make the most of your HOOPP pension, try to retire after you reach an important birthday or an eligibility service milestone. See how reaching an age or eligibility service milestone can help increase your pension.

Eligibility Service Milestone

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Read Yvette's story
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Yvette's birthday is February 27, 1956.
Lately, she’s been asking herself, when can I retire? She would like to retire early, before age 65. However, if she retires before age 60 and has less than 30 years of eligibility service, her pension will be reduced (for more information, see the Retirement Table below.) If she retires at age 59 with 14 years of service, Yvette will receive 94.0% of her pension benefits. However, if she continues to work for a few month months and retires with 15 years of service, she will receive 95.5% of her benefit.

Yvette retires:
May 31, 2015
Age 59

Yvette retires:
Nov. 30, 2015
Age 59

Pension Start DateJun. 1, 2015Dec. 1, 2015
Average annualized earnings$53,000$53,000
Eligibility service14.8 years15.4 years
Monthly basic lifetime pension$863$915
Monthly bridge benefit (payable to age 65)$283$300

 

Retirement Age Milestone

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Read Mary's story
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Mary's birthday is June 3, 1955
She would like to retire early at age 59. As a result, her pension will be reduced because she has less than 30 years of service. If she retires at age 59, Mary will receive 96.4% of her pension benefits. However, if she retires at age 60 instead, she would receive 100% of her accrued pension because no reduction is applied.

Mary retires:
May 31, 2015
Age 59

Mary retires:
June 30, 2015
Age 60

Pension Start DateJun. 1, 2015July 1, 2015
Average annualized earnings$53,000$53,000
Eligibility service18.1 years18.2 years
Monthly basic lifetime pension$1,096$1,144
Monthly bridge benefit (payable to age 65)$360$376

 

How does my HOOPP pension work with CPP and OAS?

 

You may qualify for income from government sources such as Canada Pension Plan (CPP) and Old Age Security (OAS) 

An advantage of being a HOOPP member is having your pension integrated with the CPP. If you retire between the ages of 54 to 64, you will receive a bridge benefit, in addition to your HOOPP pension. The bridge benefit is temporary. It is paid until you reach age 65 because that’s when you're eligible for an unreduced CPP pension. 

In addition, Old Age Security (OAS) may provide approximately $6,800 a year, starting at age 65, for those who are eligible. Your OAS is reduced if your total net income reaches a certain maximum, set each year by the federal government.

Use the Government of Canada's Retirement Income Calculator to calculate the value of your CPP and OAS benefits.

Is my pension protected against inflation?

 

Your HOOPP pension may be eligible for an annual Cost of Living Adjustment (COLA) to help maintain your pension’s buying power throughout retirement.

Learn more about HOOPP's cost of living adjustment.

What do I need to do as I approach retirement?

 

We can help make sure that your transition to retirement goes smoothly!

Learn more about what you need to do to initiate your pension.

What if I decide to return to work?

 

You may decide, after starting to collect your HOOPP pension that you want to return to work. With the HOOPP Plan, you have options! You can continue to collect and receive your HOOPP pension, or re-enrol in the Plan.

Find out more about working after retirement.

How do I cancel my decision to retire?

 

HOOPP understands you might initiate a retirement but, for unforeseen reasons, need to cancel it before it begins. If this occurs, please contact HOOPP and your employer immediately.

Contact HOOPP

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© 2017 all rights reserved