CPP, OAS and your HOOPP pension
When you retire, you know that you’ll receive your HOOPP pension for life, but you could also be eligible to receive Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. Each of those Government of Canada administered programs can play an important role in rounding out your retirement benefits. In this article, we will take a closer look at both of those programs.
When can I start taking CPP and OAS?
CPP provides you with a monthly, taxable pension that is designed to replace a portion of your working income in retirement. You can begin taking payments as early as age 60 (prior to age 65, those payments will be reduced), age 65 (unreduced payments) or even later (those payments will be increased). We'll talk more about these options below. In any case, you must apply in order to start receiving your CPP benefit.
For OAS, you can start receiving this monthly, taxable benefit at age 65, assuming you meet certain requirements related to Canadian legal status, annual income and residency. The amount you could receive depends on how long you have lived in Canada since turning age 18, as well as your annual income. If eligible, you may need to apply before you can start collecting your OAS benefit.
It is important to know your options and understand the eligibility rules for both programs. You can find more information about CPP and OAS on the Government of Canada's public pensions site.
When should I start taking my pension?
Once you reach age 65, you can begin collecting both your CPP and OAS benefits. But that doesn’t mean you need to wait until age 65 to retire.
As mentioned, you can decide to begin receiving CPP payments as early as age 60, but they will be at a reduced amount compared to what you would receive if you waited until age 65.
If it fits your financial plan, you can also choose to retire and start collecting your HOOPP pension before age 65. At age 60, you can retire with an unreduced pension, and will also receive a monthly bridge benefit until age 65. The bridge benefit is paid until the normal CPP/OAS retirement age of 65.
If you retire before age 60, you will receive a reduced HOOPP pension to reflect that you’ll receive it for longer. However, if you have 30 years of eligibility service, you can retire as early as age 55 without any reduction. You can find more information on our When can I retire page on hoopp.com.
When it comes to figuring out the right time to retire, it is important to consider all your retirement income sources and your tax situation very carefully. HOOPP has tools that can help.
Where can I get a pension estimate?
We have a Pension Estimator tool available on HOOPP Connect, our online member resource, that can provide you with estimates of how much your pension could be in retirement. It can help give you a sense of what your benefit could look like if you decided to take an early retirement (and receive a bridge benefit), if you retire after age 65, or anything in between.
You can also get estimates of your potential CPP/OAS payments, but remember, those estimates are based on general assumptions; they aren’t specific to your situation. That means the exact amounts you are paid by the government will likely be different than the estimates our tool provides. To get more accurate estimates of your monthly CPP/OAS payments, we recommend that you log in to your My Service Canada Account.
To sign in or register for HOOPP Connect, visit hoopp.com/connect.
Where can I find more information?
You can find general information about HOOPP pensions on hoopp.com, or you can visit HOOPP Connect for personalized details about your HOOPP pension. CPP and OAS are both administered by the Government of Canada, so for specific information about those benefits, you can contact the government at 1-800-277-9914 or visit Service Canada.