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MARCH 21, 2025

Introducing: PEPP's new retirement income option!
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RETIREMENT PLANNING

Canadians are living longer than ever. Stats show that people retiring at age 65 have an average life expectancy of 85 years, and 50 per cent of those people will live beyond age 85! Which begs the question, “Will you have enough money to last your lifetime?”

These stats drive home the need for proper financial planning. Today’s retirees expect their financial plan to support a longer lifespan – and many want their pension plan to help with this concern, including PEPP retirees. 

For the past two years, the PEPP team has been creating a new retirement income option to address members’ increasing longevity. It’s called the Lifetime Pension. 

Retired members can now choose an income option that ensures they won’t outline their savings. That’s the goal behind Lifetime Pension – to provide a dependable monthly pension payment for life. 

The benefits of Lifetime Pension include:

  • peace of mind knowing your pension payments are for life;
  • flexibility to buy a Lifetime Pension at any point in your retirement up to age 94;
  • helpful when budgeting for expenses;
  • potential to offset inflation through future market performance; and
  • the ability to tailor survivor benefits to your personal situation.

How is Lifetime Pension different than a life annuity? 

Lifetime Pension payments are adjusted every year rather than members receiving the same monthly payment for life. 

These annual adjustments ensure pension payments remain sustainable and aligned with the fund’s financial health. Adjustments are made based on investment performance and the overall longevity of Lifetime Pension members.

What about PEPP’s Variable Pension Benefit (VPB)? 

Lifetime Pension can be combined with the Plan’s popular VPB option. Lifetime Pension provides dependable monthly payments for life, while the VPB option allows members to choose how much income to withdraw and how often. 

Together, VPB and Lifetime Pension give members flexibility, security and peace of mind knowing they won’t outlive their savings. This winning combination is truly an ideal retirement solution. 

Try out our Lifetime Pension Calculator to see how different combinations of VPB and Lifetime Pension would work for you financially.

Who can buy a Lifetime Pension from PEPP? 

This retirement income option is for retired PEPP members only, between the ages of 50-94. Former PEPP members are also eligible.

To learn more about PEPP’s new Lifetime Pension option, visit our new Retirement Income page or call PEPP at 306-787-5442 or 1-877-275-7377.