Jan. 6: BEST OF THE BLOGOSPHERE

January 6, 2025

Working past 65? Check to see if you’ll still have benefits

More and more Canadians – either because they need the money or love their work – are continuing to be on the job beyond age 65.

But, reports Money Canada’s Vawn Himmelsbach, “if you stay with your employer after age 65, your benefits could expire at a time you need them most.”

Mandatory retirement at 65 stopped being the law in 2009, she writes. Today, Statistics Canada figures show that “one in five seniors (21 per cent) aged 65 to 74 worked in 2022,” she continues, noting that while “some seniors enjoy their work or the sense of purpose it brings them… many others are working because they have to.”

Those in the “have to work” category are doing so for “financial security reasons, such as affording everyday expenses, paying off mortgage debt, or supporting adult children,” Himmelsbach notes.

But even though there is no longer a mandatory retirement age, your workplace benefits may be impacted by the candles you see lit on your 65^th birthday cake.

“Many group insurance policies terminate at age 65, which typically impacts disability and life insurance benefits,” she explains. She quotes Rajiv Haté, a senior lawyer at Kotak Personal Injury Law, as recently telling BNN Bloomberg that health and dental benefit coverage may also end at that point.

“Say, for example, you’re 66 years of age and have been working at the same company for 20 years, with full benefits. You’re injured on the job and make a claim, only to find out your insurance expired when you turned 65 and the insurer denies your claim. Since you don’t have coverage, there’s not much you (or even a lawyer) can do about it,” she explains.

It’s important to check with your employer about your benefits coverage, she stresses.

“Whether your health and dental benefits expire will depend on your employer’s policy. Some policies will continue past age 65, so long as you’re paying your premiums. Others will end at age 65, though there may be an option to convert it to private coverage,” she writes.

If you are able to convert your workplace benefits into a private policy, you might be able to do so without the need for a medical exam, the article notes. Getting your own private coverage is also a possibility (if you find yourself without coverage), but a medical test may be required and that could impact the price of premiums – or worse, you could be denied coverage.

Those without coverage should put aside money in savings to cover medical expenses, the article concludes.

As one who has retired from full-time work for a little over 10 years, it is for sure a great thing if you can continue to take part in your workplace program. The cost of prescription drugs, dental care, and new glasses – like everything else – keeps going up, and once you are retired, you will be living on less income (barring a lottery win) than you had while working.

Saving for retirement on your own can be daunting, particularly if you aren’t up on stocks, bonds, real estate, infrastructure, or other categories of investment. But there’s a solution – the Saskatchewan Pension Plan. SPP does the heavy lifting of investing your savings for you. And, once it is time to turn in your name badge, SPP provides ways for you to turn those savings into income, such as via a lifetime monthly annuity payment, or our more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Money Canada

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