In this episode of AskTMFG, Financial Advisors Carlo Cansino and John Iaconetti explain what happens to your Canada Pension Plan benefits when your spouse passes away, and the steps you need to take. Many surviving spouses don’t know what they’re entitled to, and during an already difficult time, that gap can cost thousands of dollars in missed payments.
The government provides a one-time CPP death benefit of $2,500 to help with immediate costs such as funeral and burial expenses. The ongoing survivor’s pension is not automatic, though; you have to apply for it. How much you receive depends on your age when your spouse passes away and on how much your spouse contributed to CPP. Survivors 65 and older receive 60% of the deceased spouse’s retirement pension.
Carlo and John also clear up a common misconception: your own CPP and the survivor’s pension combined cannot exceed the maximum retirement pension for one person. Many survivors expect to receive their spouse’s full payment on top of their own, but in practice the top-up is often much smaller. That’s why it’s important to plan ahead for other income sources that can make up the difference.
👉 Watch the full episode here: https://youtu.be/gdziNfB9mlY
Question for our viewers: Have you and your spouse talked about how your retirement income would change if one of you passed away?
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