Episode 8: CPP Disability Part 1: Why should you apply?

The What and Why of Canadian Pension Plan Disability

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Links:

1. Government of Canada webpage for Canadian Pension Plan Disability Benefit: https://www.canada.ca/en/services/benefits/publicpensions/cpp-disability-benefit.html

Tips:

1. CPP-D is for Canadians who have contributed to The Canadian Pension Plan and have a severe and prolonged disability.
2. As of 2025 you are limited to earning $7100 (gross before tax) before you have to notify CPP of your earnings, at which point they will assess if you are capable of doing regular work. This limit goes up with inflation (2026 it’s $7400).
3. Benefits may be impacted once you pass $7100 in income. Once you go over $20 153 it’s likely you’ll be cut off CPP-D. (2026 it’s $20 971).
4. Yes, it’s mainly employment income that the CRA is looking at here. From googling we’ve learned that the CRA of course knows about your investment income anyway, from your taxes.
5. CPP-D does not fully replace your income. It’s a small percentage. The average CPP-D income per Canada.com is $1192/month.
6. ⅙ of Canadians with disabilities live below the poverty line.
7. If you’re on Long Term Disability that insurance company will likely claw back all of your CPP-D (or will drop what they’re paying you by exactly what you get from CPP-D).
8. So why apply for CPP-D?
   1. CPP-D is often the key to getting into other programs and benefits.
   2. CPP-D tells insurance companies that provide LTD that you are recognized as a severely disabled person, making it harder for them to deny you your LTD benefit (this is what’s been experienced by doctors and patients, but is not any sort of official rule).
   3. CPP-D tells the government you aren’t choosing not to work and therefore the government protects your CPP (the actual pension), allowing you to get the full pension when you retire.
9. CPP-D pays on the third to last day of the month.
10. CPP-D is calculated as: a base amount that everyone gets, plus a portion that’s income based (“CPP pensionable earnings”).
11. If you had to take time off for child rearing they will adjust the calculation so that it isn’t punitive.
12. CPP-D benefit goes up a (very) small amount every year.
13. There’s an additional benefit in CPP-D for your children.
14. You will speak to CRA workers during the application process, they will give you time frames and phone numbers to watch for.
15. The application processing will take longer than they say it will.
16. Application requires you and your doctor/primary care provider's input. You will need names of medications, tests, symptoms etc., along with amounts, dates, places etc.
17. Only 40% of applicants to CPP-D are approved the first try. Be thorough when filling in the forms!