Do Canadian Forces pensions keep up with inflation?
Yes. Canadian Forces pensions increase every January with the cost of living, as measured by the Consumer Price Index. This pension increase is called indexing. Pensions to survivors and children are also increased annually. Indexing is calculated every year from your retirement, but the accumulated increase is only paid when you: • reach age 60; or • are at least age 55 and your full years of age and pensionable service add up to 85 or more. Pensions are indexed immediately: • if you release with a pension and are disabled; • if you become disabled after retirement or become disabled while eligible for a deferred pension; and • for survivors and children. Check out the Scenarios to see examples of when indexing is paid.
