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PensionPlainly

Ontario PSPP – Public Service Pension Plan

Ontario

Full pension and early retirement

You get a full pension, with no reduction, at the first of these:

  • Age 65
  • Age 60 with 20 years of service
  • 90 points

Points are your age plus your years of service.

Earliest retirement
Age 55
Retiring earlier
5% a year reduction
Pension formula
1.3% of your average pay up to the CPP earnings limit (YMPE) and 2% above it, for each year of service
Bridge benefit
Until age 65, reduced with the pension if you retire early
Increases after you retire
100% of inflation

What retiring early costs: an example

Someone joins at 35, is paid $85,000 a year and works until each age below, so their years of service are their age less 35. Amounts are a year, before tax, in today's dollars.

Retire atReductionPensionBridge to 65
5550%$12,200$4,800
5645%$14,000$5,600
5740%$16,000$6,400
5835%$18,200$7,200
5930%$20,400$8,100
60None$30,400$12,100

Retiring at 55 instead of 60 costs twice: 5 fewer years of service, and the reduction on what is left. Early retirement reduction explains both.

What to copy from your paperwork

To use your own numbers in the income timeline:

Your annual pension statement, in OPB's e-services, gives estimates for your earliest retirement date, your earliest date with no reduction, and 65. Enter each age with the pension until 65, with the bridging benefit, and from 65. These are taken as today's dollars; if the Retirement Planner lets you add pay raises, leave them at 0%.

OPB's own estimator: the Retirement Planner in OPB's e-services.

Where these rules come from

These rules are simplified. Your plan's own estimate is the one to rely on; see the disclaimer.

Other plans in Ontario