Early Retirement Option?


#1

What If I don’t want to return to work or be retrained, but Just want an early retirement? If my CPP-D application is denied and I want to take an early retirement from my job is this possible? My LTD claim is good until Aug 2019 and I will be 65 in December of 2019. I’m still waiting for a decision. My application was received at Services Canada Mar 14. I got a phone call in March that it was received and I qualify for CPP for my age and years of work, I’m just worried about the disability aspect. There’s been no word yet. I’m not sure if I did a very good job of filling out the forms. My Chemo Oncologist filled out the medical info, but I don’t know.


#2

You’re thinking of retiring when your LTD expires?
AFAIK a person can retire whenever they want.
It may affect your income though.
Depending on the type of pension, etc.
You can “retire” early and not apply for CPP until 65.
I would phone Service Canada a bit after July 14 and not make any decisions until then.


#3

Yes, I will likely do that.


#4

“Retirement” is a very loaded word when it comes to disability benefits claims. For LTD - many insurance plans have clauses that cause benefits to stop immediately if a person “retires”. I have seen this have devastating effects on people. For CPP - if your CPP disability is denied, you can certainly opt to take the CPP retirement payment. However, any mention of retirement would lead both LTD and CPP to deny any disability claims. Retirement carries the idea notion that you can work, but choose not to because you want to retire. Certainly the motivation for retirement is one of the number one reasons that LTD insurers will deny disability claims to people in their late 50s and early 60s.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#5

@David_Brannen
Is it bad for a person on LTD for “own occupation” for 2 years to consider retirement when the definition changes to “any occupation”?
I don’t understand why an insurance company would try to cut off benefits during an “own occupation” period.
That seems stupid but nothing an insurance company does to save money should be surprising.


#6

Thanks for your answer David. Yes, my LTD has a clause about retirement. I just thought since I’m so close to retirement and have been thinking about early retirement since going through cancer treatment, it might be an easier step than going through the whole reapplying process if the disability is denied. I know a few people I’ve worked with have gone off on LTD and then retired. Maybe they waited until their LTD claim ended? I will certainly look at all my options.


#7

HI Jammer, yes I wonder this too. Of course, Insurance companies do want to recoup funds paid out and save funds going forward.


#8

They are always looking for clues that you might actually be able to work. Whenever they hear the word retirement, they will immediately wonder if you have “checked out” of trying to get better, and are not trying to return to work. They will see it this way even if you are still in the own occ period. Whenever I hear the word “retirement” red lights start flashing in our office as it is such a loaded word in the disability world.

Obviously you can plan these things, but it is a situation where the optics will take priority over the reality. Important to understand how it will be viewed by the insurance company.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#9

So in other words, you have to wait for your LTD claim to end before you can retire? Or attempt to return to work for a period before retiring even if you’re close to your retirement age? I would think your insurer would be happy to save money by your opting to retire.


#10

It sounds like if you talk of retiring while you have ltd then the insurance company might think you can actually work.


#11

Just trying to get some clarification. I’m having a surgery in June.


#12

You hit that nail on the head Jammer. Any mention of “retirement” will trigger the insurer to wonder if you have simply lost the motivation to work (because you want to retire) as opposed to being unable to work due to disability.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#13

So you have to either return to work before you retire or wait until Ltd ends before you retire?


#14

You can retire before 65 just be aware that LTD might get cut off as soon as you retire.
Talking about retiring before LTD normally ends at 65, might give the insurance company a reason to end your LTD now (eg. if you plan to retire anyways, you aren’t trying to recover enough to work).
This may not apply to your situation but it is the advice I’d give to myself.

Even if CPP-D is denied, you can appeal and I don’t think the insurance company would cut you off while you’re appealing (it’s possible to be cut off anytime though).


#15

Yes that’s probably the case. I’ll certainly look at what my options are and my health. I’ll be relieved to hear the CPP-D decision so I can quit worrying about it. If I have to appeal I will do so. It just might be difficult to appeal while recovering from surgery. Thanks.