Her husband collected CPP for only seven years – where did the rest of his contributions go?

The average Canada Pension Plan survivor’s pension for new beneficiaries aged 65 and up is an underwhelming $323.05.
This explains the unique tone of disappointment in the queries I get from readers about the CPP survivor’s pension. One person recently asked why she’s only receiving a very small portion of her husband’s CPP. He was only able to collect CPP for seven years – where did the rest of his contributions go?
The survivor’s pension is a significant driver of perceptions about the CPP, and not in a good way because it’s generally lower than people expect. Worrying about the survivor’s pension can lead people to take CPP as early as 60 at a reduced rate rather than waiting for the standard benefit at 65 or, better, enhanced benefits for waiting as late as age 70.
The underlying concern here is dying in the years after retirement and having your spouse get just crumbs from your CPP benefits through the survivor’s pension. People believe that if they start CPP as early as possible, they have a better chance of getting value from their CPP contributions over a lifetime in the work force.
Surviving spouses or common-law partners can receive a maximum 60 per cent of their partner’s retirement benefit if they have no CPP of their own. The maximum survivor’s pension in 2024 for people aged 65 and up is $818.76 per month, which is 60 per cent of the maximum retirement benefit of $1,364.60.
A complex formula is used to reduce the survivor’s pension when a recipient already has CPP benefits. This is how we end up with an average CPP survivor’s benefit that is much lower than the maximum.
An as-yet unfulfilled federal Liberal election promise is to increase the CPP survivor’s benefit by 25 per cent. “Over 1.3 million widows and widowers will receive close to $2,200 every year,” the party said in its 2021 election platform. The lack of action on this promise may reflect the complexity of increasing any type of CPP benefit.
There could be room to increase the survivor’s pension without raising overall CPP contributions by workers and employers but that’s far from a done deal. It’s also important to note what happens to the money contributed to the CPP by people who die relatively soon after retirement. Basically, that money goes back into the pot to help the CPP meet its obligations.
A suggestion for couples looking ahead to retirement: get an idea of how much CPP retirement benefit you’re in line to receive and adjust expectations for the survivor’s pension accordingly. The closer you are to the maximum CPP retirement benefit, the less survivor’s pension you should expect. You can see your CPP contributions and get an estimate of benefits using a My Service Canada Account.