What Happens to My WSIB Pension When I Turn 65

Most injured workers in Ontario see their weekly WSIB checks stop on the day they turn 65. This loss of income often causes stress for people who rely on their injury benefits. Understanding your rights now is the best way to protect your future.

Talk to a WSIB representative about your pension transition today — getting ahead of the age-65 cutoff can help you avoid gaps in your income.

Many workers worry about how they will pay their bills once their regular benefits stop. Understanding the rules the board uses to end your monthly payments is the first step.

What Happens to My WSIB Pension When I Turn 65: Your WSIB Loss of Earnings Benefits End at Age 65

For many injured workers in Ontario, turning 65 is a time of big change. One of the main shifts is that your Loss of Earnings (LOE) benefits will stop. This rule is in section 43(1) of the Workplace Safety and Insurance Act. The law says these payments replace income you would have made if you were still at work. Since age 65 is the usual retirement age, the board stops these payments at that time.

How the age-65 cutoff works

The Workplace Safety and Insurance Board pays LOE benefits at a rate of 85% of your net earnings loss. These payments go on as long as a work injury stops you from making what you did before. But once you reach your 65th birthday, the board assumes you have retired. At this point, the weekly or monthly LOE cheques end. This can be a shock if you still have high costs or bills to pay. You can see more on official benefit rules at the board's website.

The rule for workers injured after age 63

There is a special rule for people who get hurt later in their jobs. If you are 63 years old or older when your injury happens, your benefits may last past age 65. In these cases, you can get LOE benefits for up to two years from the date of your injury. This makes sure that older workers still get some money help while they heal. It is a key safety net for those who meant to work past the usual retirement age. If your claim is complex, you can request a free connection to a WSIB expert through ClaimIt.

The end of re-employment duties

Turning 65 also changes your link with your employer. Under the law, a company's duty to offer you a job ends on your 65th birthday. This means they no longer have to find light tasks or other roles for you if you cannot do your old job. This shift happens at the same time your LOE benefits end. Many workers find this change hard because it affects both their pay and their job safety in one day. Knowing these rules early can help you plan for what you will need.

The WSIB Loss of Retirement Income Benefit: Your Pension at 65

When LOE benefits stop, a new payment often starts. This is the Loss of Retirement Income (LRI) benefit. People often call it a WSIB pension. It is money meant to help you once you stop working. The board sets this money aside while you get other benefits so you have financial help in your later years.

Benefit Type	What Happens at 65	Payment Type	Reduced by CPP or OAS?
Loss of Earnings (LOE)	Ends at age 65	Weekly or monthly cheque	Yes, if on CPP disability
Loss of Retirement Income (LRI)	Pays out at 65	Lump sum or annuity	No
Health Care Benefits	Continue past 65	Coverage for treatment	No
Non-Economic Loss (NEL)	Already paid, no change	Lump sum	No

Who can get the retirement benefit

Not every worker gets this pension. You must meet a few rules to qualify. First, you must have been under 64 years old when your injury happened. Second, you must have received benefits for at least 12 months in a row. These can be Loss of Earnings or Future Economic Loss payments. If you fit these rules, the board starts saving for you. You can find a WSIB lawyer or paralegal to see if your claim qualifies for this help.

How the board saves your money

The amount you get depends on when you were hurt. If your injury was after January 1, 1998, the board saves 5% of each cheque. This starts once you have been on benefits for a full year. For older claims from the 1990s, the board saved 10% of the money. You also had the choice to add more. Some workers chose to put in another 5% from their own cheques. The board invests this cash so it can grow. You get the total sum plus any investment income it earned.

Getting your payment at age 65

The board pays this money out once you reach age 65. About two months before your birthday, you should get a letter. This letter often comes from TELUS Health. It will tell you how much money is in your account. Most people get a single lump sum cheque. This usually arrives four to eight weeks after you turn 65. Based on WSIB guidelines, you may also use the funds to buy an annuity for a monthly payment instead.

How it affects other income

Many workers worry that this money will lower their other cheques. The good news is that this benefit is separate. It does not change how much you get from the Canada Pension Plan or Old Age Security. It also does not affect private pensions from your past jobs. You can find more facts on Ontario labour rules and worker rights online. This payment is yours because of your past work and your injury claim.

How CPP and OAS Affect Your WSIB Benefits at 65

When you reach age 65, you may start getting federal retirement money. The Canada Pension Plan (CPP) and Old Age Security (OAS) are the two main sources. Many people worry that these payments will lower their WSIB funds. It is vital to know which benefits change and which ones stay the same.

CPP disability and your LOE benefits

If you get CPP disability benefits for the same injury, it can affect your WSIB payments. The board often views both as income for the same loss. This means your WSIB benefits might be reduced. This rule usually applies while you are still getting Loss of Earnings (LOE) payments before you turn 65. The reduction happens because the board wants to avoid double payments for one injury. But this change only applies to disability funds from the federal plan. Other types of CPP payments may not have the same effect. You should check with an expert if you receive both. According to the Government of Canada, these disability benefits are for people who cannot work due to a severe and long-term condition.

Why your LRI benefit is separate

The Loss of Retirement Income (LRI) benefit is fully separate from your federal pension. Your CPP retirement or OAS payments will not lower your LRI amount. This benefit is based on money set aside from your past WSIB cheques. It belongs to you regardless of other income. Even if you have a private pension from an old job, your LRI cheque will not change. This independence gives you a more stable financial plan for later life. You can collect your full CPP and OAS while also getting your LRI lump sum or monthly pay. The Workplace Safety and Insurance Board confirms that employer pension plans also do not affect this specific benefit.

Planning for your total income

Most workers receive their LRI payment about two months after they turn 65. You should look for a letter from TELUS Health around this time. This letter will help you choose how to receive your funds. Since LRI is taxable income, you may want to talk to a tax expert about how it fits with your CPP and OAS. Planning ahead helps you get the most out of every benefit you earned.

What Happens If You Die Before Receiving Your LRI Benefit

You may wonder what happens to your WSIB retirement funds if you pass away before age 65. The rules depend on how a person dies and who is left to get the money.

Death from a workplace injury

If a worker dies because of their workplace injury, the rules change. WSIB does not pay out the standard retirement fund. Instead, your loved ones may get family benefits from the board. You can read more about these rules on the official WSIB website. These payments provide long-term help for spouses and children left behind.

Death from other causes

The rules are not the same if a worker dies from causes not linked to their injury. If you die before age 65 from natural causes, your family can still get the money. WSIB will pay out the total amount they set aside for you, including all money earned from growth. This ensures funds you built up still go to your loved ones.

But the rules change if you have no family members. In that case, your estate only gets a part of the fund. WSIB uses strict rules to decide what goes to your estate. Here is what your estate can usually receive:

• Your own extra payments that you chose to make each month.
• The interest and growth earned on those extra payments.
• Any other extra funds you added to the account.

The 5% or 10% that WSIB set aside from your regular cheques will stay with the board.

Taxes and legal claims

The WSIB retirement fund is taxable income. Anyone who gets the money must report it on their taxes. This applies whether the money goes to a worker, a family member, or an estate. You should talk to a tax expert to see how this might affect your total payout. Most of the time, the fund is safe from old debts. But there is one exception: WSIB can take the money to pay for court-ordered child or spousal support.

Is the WSIB Age-65 Cutoff Changing?

Many workers in Ontario feel the age-65 cutoff is unfair. If an injury still keeps you from work, you should still get help. Groups across the province are working to change the system. In July 2025, the Rights Don't Retire campaign launched a big push. This group wants the government to stop ending help based on age. They argue that older workers should get the same care as younger ones.

New laws in Ontario

The Ontario government is starting to listen to these calls. In 2026, Bill 105 was introduced to fix some of the problems older injured workers face. It does not remove the age-65 limit for everyone yet, but it changes how parts of the system work. Experts who study work-related injuries note that pain often lasts for many years. These new rules aim to give more help to those who need it as they age.

Jobs and the law at 65

The law also covers what happens to your job when you reach age 65. Under the Workplace Safety and Insurance Act, an employer's duty to find you a new role ends at age 65. This means your boss no longer has to offer you light work or a new spot in the firm. This rule can be very tough for workers who can still do some work but need accommodation. If you are unsure how this affects your case, contact ClaimIt to speak with a WSIB specialist.

Why the future is not clear

The rules for WSIB are changing more now than in the past. New groups are forming to fight for the rights of injured seniors. They believe the 65-year-old limit is an outdated rule. For now, the laws are complex. It is key to stay updated on what happens to your WSIB pension when you turn 65 as new bills pass through the government. Having a plan can help you avoid a sudden loss of money. Speaking with a specialist can help you see if you qualify for more help or a new review of your file.

Schedule a free consultation with a WSIB lawyer or paralegal — understanding your transition options now can protect your retirement income.

Frequently Asked Questions

Can I still get WSIB benefits after age 65?

Your Loss of Earnings benefits end when you turn 65. However, you will get your Loss of Retirement Income benefit at that time. This is a one-time payment from money set aside during your claim. You may also still get health care benefits for your injury. According to the WSIB, these health benefits can continue for as long as you need treatment for your work-related injury.

Is the WSIB loss of retirement income benefit taxable?

Yes. The money you get from your Loss of Retirement Income benefit counts as taxable income. You must report this amount to the government in the year you receive it. The money is a form of pension income meant to help you in your senior years. You will get a tax slip to help you file your taxes for that year.

How do I receive my WSIB retirement pension payments?

You do not need to apply for this payment. About two months before you turn 65, you should get a letter from TELUS Health. This letter will show how much money is in your fund. You can choose to receive the money as one large cheque or as a monthly pension. The WSIB usually sends the money about four to eight weeks after your 65th birthday.

Does CPP affect my WSIB retirement pension?

No. Your Loss of Retirement Income benefit is not affected by other income. You can still get your full payment even if you receive Canada Pension Plan or Old Age Security benefits. Your employer pension plan will not change your WSIB payment either. This money is yours based on what was set aside from your past benefits.

What happens if I die before receiving my WSIB retirement fund?

If you die from a workplace injury, your family receives survivor benefits instead of the LRI fund. If you die from other causes, your family can still receive the full LRI amount. If you have no family, your estate only receives the extra voluntary contributions you made plus the growth on those funds. The base 5% or 10% that WSIB set aside stays with the board.

Ready to Plan Your WSIB Retirement Transition Now?

Waiting until you turn 65 to look at your WSIB file can lead to gaps in your pay. Starting your review today gives you the time you need to fix errors so your money is ready when you need it. Protecting your future now gives you the peace of mind you deserve as you transition into retirement.

Ready to plan your transition? Browse WSIB lawyers and paralegals on ClaimIt to connect with a representative today. They can help you navigate the shift to retirement-age benefits and ensure you receive every benefit you earned.