I will have
to work past 65,
but my benefits
will end. How
can continue beinginsured?
I will have to work past 65, but my benefits will end. How can continue being
insured?
Andrea Yu
Special to The Globe and Mail
Published 30 minutes ago
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THE QUESTION
I’m 60 years old and work in the retail industry. With the high cost of living
these past few years, I have had to dip into my savings to make ends meet.
This means I will have to keep working well past age 65 and not retire as I
had originally planned. My issue is benefits. I have health and disability
benefits through my employer group insurance• Страхование plan which will end when I turn
65. What is the best way to extend these benefits and make sure I continue to
have access to them while still working past age 65? I count on them for my
expensive prescription medications and also for disability benefits.
THE FIRST ANSWER
Nainesh Kotak , founder, Kotak Personal Injury Law , Mississauga
Unfortunately, your situation is becoming a more common reality with more than
900,000 Canadians working past the age of 65 as of 2023. It is important to
note that most group disability benefits terminate at retirement, or age 65,
typically using the earlier date. Canada Pension Plan Disability Benefits also
terminate at age 65. Extended healthcare, dental and prescription drug
coverage policies may continue as long as a person is employed. Ultimately, it
is crucial to ensure that you familiarize yourself with your benefits policies
to ensure you are aware of these provisions.
Extending either disability coverage or healthcare coverage past the age of 65
is a conversation that should occur with your insurer• Страхование » Страховщик and your employer. It
may be possible to convert your group insurance• Страхование benefits to a private policy
in order to maintain coverage. If that is not an option, it may become
necessary to purchase your own private policy to ensure continued coverage.
Unfortunately, obtaining disability or extended healthcare coverage closer to
retirement age often results in much higher premiums than usual.
When initially negotiating employment contracts, you may opt to bargain for
benefits past age 65, or ask whether a group policy• Высокие технологии » Информационные технологии и телекоммуникации » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика
• Информационные технологии » Информатика » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика
• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика can be converted to an
individual one at age 65. If your employer provides different benefit plans as
part of a group policy• Высокие технологии » Информационные технологии и телекоммуникации » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика
• Информационные технологии » Информатика » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика
• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Программирование » Платформы программирования » Операционные системы » Операционные Системы Майкрософт » Microsoft Windows » Active Directory » Групповая политика, higher premium plans may provide for these benefits to
continue past age 65. As a result, planning in advance is the most important
consideration when planning to work past retirement age.
THE SECOND ANSWER
Alecia Henderson , senior vice-president of benefit services, NFP, an Aon
Company , Kitchener
The situation you describe is becoming more common for Canadians. Fortunately,
there are several strategies to help bridge coverage gaps because you plan to
work beyond age 65. To potentially boost your retirement income, consider
deferring your Canada Pension Plan (CPP) and Old Age Security (OAS) benefits
until age 70 or until you fully retire. By delaying until age 70, OAS can
increase by up to 36 per cent and CPP by as much as 42 per cent. Delaying can
also reduce your tax burden, especially if your retirement income falls into a
lower tax bracket. Keep in mind that OAS benefits may be subject to clawback
above certain income levels.
For prescription drug coverage, most provinces offer expanded benefits for
those over 65. For example, Ontario’s Drug Benefit (ODB) program covers more
than 5,000 medications, with an Exceptional Access Program for some
medications not typically covered by ODB. At the federal level, the Canadian
Dental Care Plan (CDCP) offers dental coverage for Canadians over 65 with a
household income less than $90,000 who lack other coverage, which can be
especially helpful as group dental coverage ends.
You may want to explore supplemental health and dental insurance• Страхование options
designed for people leaving group plans, which can help fill gaps in
government coverage. Keep in mind that long-term disability coverage beyond
age 65 is rare in group plans, and individual policies can be costly. We
recommend speaking with a financial or insurance• Страхование adviser who can help you plan
for your health and income needs in the years to come.
Have a question for our experts? Send an e-mail• Коммуникации » Интернет-коммуникации » Электронная почта to NineToFive@globeandmail.com
with ‘Nine to Five’ in the subject line. Emails without the correct subject
line may not be answered.
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