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Working Past Age 65 and Benefit Plans

Today many people are working past age 65. Most benefit packages are set up to reduce some benefits at 65 and discontinue others. If you are an employee or an employer and working past age 65 is on the horizon, make sure your benefits carrier is aware of what is going on and educate yourself as well. Here are a few comments on things you should be reviewing.

The Canada Pension Plan, CPP, introduced a number of changes effective 2012. You can still start collecting your CPP at 60, but you must continue to contribute. As well, you can enhance your CPP income by putting the income off until age 70. More complete information is available at:

Life Insurance benefits usually drop by 50% at age 65. You may request your group carrier to change that to age 70 or whatever. If that is not available, perhaps you should be supplementing your life insurance coverage with more personal life coverage.

Most LTD benefits end at age 65. We know of one provider that will guarantee issue personal LTD benefits after age 65. You can have an individual plan that will now cover you to age 75.

Drugs and Health benefit plans all vary to some degree. Persons in Ontario are covered for most drugs past age 65. You can request to be removed from your drugs and extended health benefits group plan as you will have duplicate coverage in many situations through the provincial government. If you are a company owner, discuss this in detail with your turning 65 employee.

Most dental benefits can be continued past age 65, but make sure your benefits contract allows for it.

I guess from the forgoing you can tell that turning 65 will trigger some automatic things at that point and some not so automatic. It is not to be ignored.