Retiring from work is a major life transition. While you may have retirement savings and pension income, you may find yourself needing additional financial help during retirement. Could Employment Insurance benefits be an option?
Follow along for detailed information to understand if EI benefits during retirement may be an option for you in retirement.
Types of EI Benefits Available to Retired Workers
Employment Insurance through Service Canada offers two main categories of income benefits: regular EI benefits and special EI benefits.
Regular EI Benefits
Regular EI benefits provide temporary payments if you lose your job involuntarily through no fault of your own. Common scenarios include being laid off, a company restructuring, or your position being eliminated. You cannot collect regular EI benefits if you voluntarily resign in order to retire.
Special EI Benefits
Special EI benefits are accessible in specific circumstances, such as
- Sickness
- Maternity/parental leave
- Compassionate care leave
- Parents of critically ill children leave
These benefits relate to temporary leaves, not permanent job loss. Retirees would not qualify for special EI benefits.
Eligibility Criteria for Regular EI Benefits as a Retiree
As someone who has fully retired, the only EI benefits you could qualify for are regular EI payments. However, there are strict criteria you must meet—regardless of the EI premium rates you’ve paid over the years, eligibility is based on the following:
You Must Have Involuntarily Lost Your Job
Your retirement must have been involuntary, so you could qualify for regular EI as a retiree. Reasons that could potentially make you eligible include:
- Being laid off from your long-term job due to company downsizing or restructuring
- Being forced into retirement earlier than planned by your employer
- Having to quit your job due to workplace harassment, discrimination, safety issues, or other intolerable work conditions
For example, if the company you had worked at for 35 years suddenly underwent major downsizing and eliminated your position, forcing you into early retirement, you may qualify for EI.
Whereas you would not be eligible if you opted for voluntary early retirement or resigned to pursue your own interests.
You Must Meet Other Standard EI Requirements
In addition to involuntarily losing your job, you must meet all other basic criteria for EI, including:
- Accumulating enough insurable employment hours in the qualifying period, which is the shorter of the last 52 weeks or since your last EI claim
- The number of insurable hours required ranges from 420-700, depending on the unemployment rate in your region
- Being without work and without pay for at least 7 consecutive days
- Being ready, willing, and capable of working each day
- Conducting an active job search and being able to provide detailed records of your job search activities
When Quitting a Job Could Provide EI Eligibility in Retirement
Voluntarily quitting your employment will generally disqualify you from receiving regular EI benefits, even in retirement. However, there are some scenarios where quitting your job may still make you eligible if it was considered “just cause.”
Reasons that could potentially be considered just cause for quitting include:
- Having to quit for health and safety reasons, such as workplace conditions that endangered your physical or mental well-being
- Needing to relocate to follow a spouse or take care of an elderly family member
- Experiencing workplace harassment, discrimination, or abuse on the job
- Having your work conditions, duties, or compensation changed significantly without your consent
In these types of situations, you may be able to demonstrate there was just cause for quitting and no other reasonable option. However, each case is reviewed individually by Service Canada to make a determination.
How CPP, QPP, and Other Pensions Affect EI Eligibility
If you are receiving income from sources like the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), an employer pension, or even certain foreign pensions, it can impact your eligibility for EI benefits.
These types of retirement income sources are considered “earnings” and will reduce the amount of EI benefits you are entitled to:
- For every $1 received from CPP, QPP, or pension income, your EI benefit entitlement will be reduced by $0.50 up until it reaches a maximum reduction of 90% of your previous weekly earnings.
- If those retirement income sources exceed 90% of your previous weekly earnings, your EI benefit is reduced dollar-for-dollar for any amount above the 90% threshold.
Old Age Security (OAS), on the other hand, does not affect your eligibility for EI since it is not considered employment income.
Maximum Duration of EI Benefits for Retired Workers
If you do qualify for regular EI benefits as a retiree, the maximum length of time you can receive payments ranges from 14-45 weeks. The duration depends on:
- The unemployment rate in your province of residence
- The number of insurable hours you accumulated in the qualifying period (the 52 weeks or period since your last EI claim)
For example, in a region with high unemployment like Atlantic Canada, the maximum duration is 45 weeks. In Northern Canada, where unemployment rates are lower, the maximum is only 14 weeks.
The maximum number of weeks could also be extended by a few additional weeks if you served on jury duty or due to certain amendments made to the Employment Insurance Act.
The exact duration is calculated as shown in table below:
| Unemployment Rate in Region | Maximum Weeks of EI Benefits |
| 6% or less | 0-32 weeks |
| 6.1% to 7% | 0-34 weeks |
| 7.1% to 8% | 17-36 weeks |
| 8.1% to 9% | 18-38 weeks |
| 9.1% to 10% | 20-40 weeks |
| 10.1% to 11% | 21-42 weeks |
| 11.1% to 12% | 22-44 weeks |
| 12.1% to 13% | 23-45 weeks |
| 13.1% to 14% | 24-45 weeks |
| 14.1% to 15% | 25-45 weeks |
| 15.1% to 16% | 26-45 weeks |
| 16% or more | 28-45 weeks |
Additionally, suppose you are considered a low-income family and receive the Canada Child Benefit. In that case, you may qualify for the EI Family Supplement, which can provide increased benefits of up to 80% of your previous insurable earnings.
The bottom line
While Employment Insurance benefits are not intended as an ongoing income source for Canadian retirees, involuntarily losing your job could make you eligible if you meet specific criteria.
Key considerations include:
- EI eligibility is limited to regular benefits – you cannot collect special EI benefits like sickness leave as a retiree.
- You must have involuntarily lost your job due to reasons like downsizing or intolerable working conditions.
- Voluntary resignation or retirement does not qualify you for EI.
- Other income sources like CPP, QPP, and pensions can reduce your EI benefit amount if eligible.
- The duration of EI benefits is temporary, between 14-45 weeks, depending on your region.
Understanding the exact qualifications and limitations can help Canadian retirees determine if EI benefits, in addition to other retirement income sources, may be accessible as supplemental income.
FAQs on Qualifying for EI Benefits During Retirement
How can a retiree qualify for EI benefits in Canada?
A retiree can qualify for EI benefits if they return to work after retirement and accumulate enough insurable hours, then lose their job through no fault of their own. They must meet the eligibility criteria like other EI applicants.
What are the eligibility requirements to receive EI as a retiree?
To qualify for EI as a retiree in Canada, you must have worked a minimum of 420-700 insurable hours in the last 52 weeks or since your last EI claim, earned at least 40% less weekly than your previous earnings, and lost your job through no fault of your own.
Why would a retired worker need EI benefits?
A retiree may need EI benefits if they return to work but are later laid off or let go, to provide temporary financial assistance until they find another job or retire fully again.
When can retirees start collecting EI payments in Canada?
EI payments for eligible retirees begin following the 1 week waiting period after submitting their application, provided the retiree filed bi-weekly reports and proved they are still unemployed and looking for work.
Do self-employed retirees qualify for EI benefits?
Typically no, self-employed Canadians do not pay into EI and therefore cannot collect benefits. There are some special benefits like the Canada Recovery Benefit they may qualify for.
Do EI benefits run concurrently with CPP pensions for seniors?
No, EI benefits do not get deducted from CPP or other pensions. Retirees can receive both EI and CPP/OAS payments concurrently.