In Ontario, standard WSIB Loss of Earnings (LOE) benefits generally cease when you reach age 65 (or after two years if injured at age 63 or older). However, under proposed legislative reforms in Bill 105, workers may be allowed to continue receiving LOE benefits beyond age 65 if they prove they intended to remain in the workforce.
Ontario’s workforce is aging rapidly. With the rising cost of living, countless tradespeople, healthcare workers, and manufacturing staff in cities like Ottawa, Sudbury, and Toronto are working well past the traditional retirement age. When an older worker suffers a severe workplace injury, a primary concern is how the WSIB handles their income replacement as they approach their 65th birthday.
Understanding the intersection between WSIB benefits and retirement is crucial. 📅 Under standard rules, the system assumes that workers retire at age 65, cutting off standard Loss of Earnings (LOE) benefits. While a “two-year exception” currently exists for workers injured at age 63 or older, major legislative reforms introduced in April 2026 under Bill 105 (the Protecting Ontario’s Workers and Economic Resilience Act, 2026) propose to allow workers to apply to continue receiving LOE benefits past age 65 if they show they likely would have continued working.
Step-by-Step Process for Managing WSIB Benefits Near Age 65
Transitioning from WSIB income to retirement income requires careful planning. Here is how the process works for older workers injured in Ontario.
Step 1: Determine Your Age on the Date of Injury
The exact date of your workplace accident dictates the entire timeline of your benefits. If you are injured when you are 62 years and 11 months old, your LOE benefits will end on your 65th birthday. If you are injured exactly on or after your 63rd birthday, the special exception rule applies to your case.
Step 2: Collect Your Standard LOE Benefits
While you are recovering, you will collect standard LOE benefits. 💵 In Ontario, this is generally calculated as 85% of your net average earnings prior to the accident (proposed to increase to 90% under Bill 105), subject to the annual maximum insurable earnings cap of $121,700 CAD for 2026. You must continue to cooperate with WSIB medical treatments and return-to-work programs during this time.
Step 3: Utilize the Two-Year Extension (If Eligible)
If you were injured at age 63 or older, you are legally entitled to receive LOE benefits for up to a maximum of two years from the date of the injury, provided you remain medically impaired from working. For example, if you suffer a severe back injury on your 64th birthday, your WSIB LOE benefits will continue until your 66th birthday, overriding the standard age 65 cut-off. Additionally, Bill 105 proposes to let workers apply for extensions past age 65 if they prove they planned to continue working.
Step 4: Receive the Loss of Retirement Income (LRI) Benefit
When your LOE benefits end, you may be eligible for the Loss of Retirement Income (LRI) benefit. 💰 If you received LOE for more than 12 continuous months, the WSIB sets aside 5% of your benefits into a retirement fund. However, under WSIB Policy 18-03-07, only workers who were under the age of 64 on the date of their injury are eligible for this benefit. If you were injured at age 63, you can receive LRI when your extended LOE benefits end after age 65. If you were injured at age 64 or older, you are completely excluded from the LRI program and will not receive this payout, even if you received LOE continuously for more than 12 months.
Step 5: Transition to CPP and OAS
Once WSIB income replacement ends, you must transition to federal retirement programs. You should apply for the Canada Pension Plan (CPP) and Old Age Security (OAS) several months before your WSIB benefits are scheduled to terminate to ensure there is no disruption in your monthly household cash flow.
How Much Does it Cost in Ontario?
Navigating age-related benefit cut-offs is complex, and hiring representation can help you maximize your final payouts.
- WSIB Application: $0 CAD. There are no fees to apply for LOE or the LRI payout.
- Law Firm Fees: If the WSIB tries to cut off your benefits early by claiming you are “fully recovered” before age 65, hiring a lawyer to appeal the decision will generally cost 15% to 30% of the reinstated retroactive benefits.
- LRI Payout: The Loss of Retirement Income benefit is a lump sum. If your LOE was high, this payout can easily total between $10,000 and $30,000+ CAD upon reaching retirement age.
| LOE Payment Calculation | 85% of net average earnings |
| LRI Retirement Contribution | 5% set aside by WSIB |
| Legal Appeal for Early Cut-off | 15% – 30% contingency fee |
How Long Does the Process Take?
The timeline is strictly governed by your birth date. The WSIB will typically send you a notification letter 6 months before your 65th birthday (or the end of your two-year window) to remind you that your LOE payments are ending. Processing your final LRI lump-sum payout (if eligible) usually takes 4 to 8 weeks after your final LOE cheque is issued.
Frequently Asked Questions (FAQ)
Do my medical benefits stop at age 65 too?
No. While your income replacement (LOE) stops at age 65, your WSIB medical coverage for the specific workplace injury continues for life. If you still need physiotherapy, medications, or surgeries related to the injury at age 70, the WSIB will generally continue to pay for it.
Can I collect CPP Disability and WSIB at the same time?
Yes, but there is a catch. If you collect CPP Disability benefits for the exact same injury, the WSIB is legally allowed to deduct the CPP amount from your WSIB LOE payment. This is known as a “CPP offset,” which prevents double-dipping into government funds.
What if I planned to work until I was 70?
Historically, the system has been rigid, cutting off benefits at age 65 (or after the two-year exception) regardless of your retirement plans. However, under proposed changes in Bill 105 (the POWER Act, 2026), injured workers would be able to apply to the WSIB for continued LOE benefits past age 65 by demonstrating that they likely would have continued working in suitable employment if not for their injury.
Can a lawyer help me get a larger LRI payout?
The 5% LRI contribution is a fixed mathematical formula. A lawyer can review your file to ensure your initial LOE was calculated correctly based on your true earnings, which would proportionally increase your LRI. However, keep in mind that if you were 64 years of age or older on the date of your injury, you are not eligible for the LRI benefit at all under WSIB rules, so a lawyer cannot help you secure this payout.
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