Bridge benefit: what happens to your pension at 65
A bridge benefit is a temporary top-up that some defined benefit plans pay when you retire before 65. It is paid on top of your lifetime pension and stops at a set age, usually 65.
Why plans pay it
The Canada Pension Plan (CPP) retirement pension has a standard start age of 65, and Old Age Security (OAS) starts at 65. If you retire at 58, there are seven years before either one arrives at its standard age. The bridge is meant to cover that gap, so your income is steadier before and after 65.
Why your pension seems to drop at 65
When the bridge ends, the payment from your plan goes down. This surprises many retirees. The plan has not cut your pension. The temporary part has ended, as it was always going to.
Whether your total income goes down, stays level or goes up at 65 depends on what starts at the same time:
- CPP, if you start it at 65. You can start it as early as 60 or as late as 70, and the amount changes with the age you pick. See Should I take CPP at 60, 65 or 70?
- OAS, which starts at 65. You can delay it, and it grows by 0.6% for each month you wait, up to 36% more at 70, according to the Government of Canada's page When to start your retirement pension, checked on October 3, 2026.
The bridge is rarely equal to your CPP and OAS. It is set by your plan's formula, and your CPP depends on your own contributions.
If you start CPP early
The bridge does not depend on when you start CPP. If you start CPP at 60 and your bridge runs to 65, you receive both for those years. Your income is then higher before 65 and lower after, because the CPP you started early is smaller for life.
What to look for on your statement
- Whether your plan pays a bridge benefit. Not all plans do.
- The amount, and whether it is reduced if you retire early.
- The age it ends.
- Whether it is indexed while it is paid.