Retirement age milestones
Income in retirement: How much is enough?
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 your 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 or employment insurance contributions. You can also typically expect to pay less income tax in retirement.
Choosing a retirement date
In general, the later you retire, or the more years of 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. Here’s how
reaching an age or eligibility service milestone can help increase your pension.
Eligibility service milestone
Yvette
Yvette's birthday is February 27, 1962.
Lately, Yvette has 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 months and retires with 15 years of service, she will receive 95.5% of her benefit.
| | Yvette retires: May 31, 2021
Age 59 | Yvette retires: Nov. 30, 2021
Age 59 |
| Pension start date | June 1, 2021 | Dec. 1, 2021 |
| Average annualized earnings | $60,000 | $60,000 |
| Eligibility service | 14.8 years (3.4 years post Dec. 31 2017)* | 15.3 years (3.9 years post Dec. 31, 2017)* |
| Monthly basic lifetime pension | $1,190 | $1,240 |
| Monthly bridge benefit (payable to age 65) | $200 | $220 |
*Effective Jan. 1, 2018 HOOPP made a number of Plan benefit improvements. Since Yvette has service prior to 2018, she was eligible for those improvements and her pension for service prior to 2018 is calculated at a higher rate. Learn more about HOOPP's benefit improvements.
Samir
Samir's birthday is June 3, 1961.
He would like to retire early at age 59.
As a result, his pension will be reduced because he has less than 30 years of service. If he retires at age 59, Samir will receive 96.4% of his pension benefits. However, if he retires at age 60 instead, he would receive 100% of his accrued pension because
no reduction is applied.
| | Samir retires: May 31, 2021
Age 59 | Samir retires: June 30, 2021
Age 60 |
| Pension start date | June 1, 2021 | July 1, 2021 |
| Average annualized earnings | $60,000 | $60,000 |
| Eligibility service | 18.1 years (3.4 years post Dec. 31 2017)* | 18.2 years (3.5 years post Dec. 31, 2017)* |
| Monthly basic lifetime pension | $1,500 | $1,560 |
| Monthly bridge benefit (payable to age 65) | $250 | $260 |
*Effective Jan. 1, 2018 HOOPP made a number of Plan benefit improvements. Since Samir has service prior to 2018, he was eligible for those improvements and his pension for service prior to 2018 is calculated at a higher rate. Learn more about HOOPP's benefit improvements.
HOOPP retirement table
This retirement table provides you with a breakdown of the percentage of your pension you will receive based on your service.
Completed years of eligibility service
Percentage of pension payable
| Completed years of eligibility service |
Percentage of pension payable |
| |
Age 55 |
Age 56 |
Age 57 |
Age 58 |
Age 59 |
Age 60+ |
| 14 or less |
70.00% |
76.00% |
82.00% |
88.00% |
94.00% |
100% |
| 15 |
77.50% |
82.00% |
86.50% |
91.00% |
95.50% |
100% |
| 16 |
79.00% |
83.20% |
87.40% |
91.60% |
95.80% |
100% |
| 17 |
80.50% |
84.40% |
88.30% |
92.20% |
96.10% |
100% |
| 18 |
82.00% |
85.60% |
89.20% |
92.80% |
96.40% |
100% |
| 19 |
83.50% |
86.80% |
90.10% |
93.40% |
96.70% |
100% |
| 20 |
85.00% |
88.00% |
91.00% |
94.00% |
97.00% |
100% |
| 21 |
86.50% |
89.20% |
91.90% |
94.60% |
97.30% |
100% |
| 22 |
88.00% |
90.40% |
92.80% |
95.20% |
97.60% |
100% |
| 23 |
89.50% |
91.60% |
93.70% |
95.80% |
97.90% |
100% |
| 24 |
91.00% |
92.80% |
94.60% |
96.40% |
98.20% |
100% |
| 25 |
92.50% |
94.00% |
95.50% |
97.00% |
98.50% |
100% |
| 26 |
94.00% |
95.20% |
96.40% |
97.60% |
98.80% |
100% |
| 27 |
95.50% |
96.40% |
97.30% |
98.20% |
99.10% |
100% |
| 28 |
97.00% |
97.60% |
98.20% |
98.80% |
99.40% |
100% |
| 29 |
98.50% |
98.80% |
99.10% |
99.40% |
99.70% |
100% |
| 30 + |
100% |
100% |
100% |
100% |
100% |
100% |
Frequently asked questions
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 55 to 65, 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, OAS may provide approximately $7,300 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.
What do I need to do as I approach retirement?
We’re here for you every step of the way. We can help make sure that your transition to retirement goes smoothly.
Learn more about what you need to do to initiate your pension.
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 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.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.