A client is 67 years old and has been collecting Canada Pension Plan (CPP) retirement benefits since age 65. Her spouse, who is 60 years old, has no significant CPP contributions. The spouse is considering applying for a CPP survivor benefit or a CPP spousal sharing benefit after the client’s death. Which statement accurately outlines a key difference between these two CPP benefits?

Question: A client is 67 years old and has been collecting Canada Pension Plan (CPP) retirement benefits since age 65. Her spouse, who is 60 years old, has no significant CPP contributions. The spouse is considering applying for a CPP survivor benefit or a CPP spousal sharing benefit after the client’s death. Which statement accurately outlines a key difference between these two CPP benefits?

Answer options:

• The survivor benefit requires the deceased to have contributed for a minimum period, while spousal sharing does not.
• Spousal sharing reduces the combined CPP benefits, while the survivor benefit increases them.
• The survivor benefit requires the spouse to be over 60, but spousal sharing can begin at any age. ✅ Spousal sharing calculates benefits based on both spouses' contributions, whereas the survivor benefit is based primarily on the deceased's contributions.

Correct answer: Spousal sharing calculates benefits based on both spouses' contributions, whereas the survivor benefit is based primarily on the deceased's contributions.

Explanation: CPP survivor benefits are based primarily on the deceased contributor's contributions. Spousal sharing, however, allows for a division of contributions made by both spouses during their relationship before either starts receiving CPP retirement benefits, potentially leading to higher combined benefits for some couples.