This is not a direct quote from the standard NHL contract and therefor is suspect.
I happened to provide a link to this site, but my search returned the same results from other sites.
Here is another link, this time to PuckPedia.
If a player with retained salary retires, all of the player's cap hit is removed, which includes his current team and his former team that retained salary. The exception is a player who was 35+ and signed a multi-year contract, as if that player retires the cap hit remains. However, it is very rare for players to actually retire with an active contract. When a player retires, they no longer receive the pay remaining on their contract. If players have contracts but no longer wish to play, the more common result is that they go on the injured list for the remainder of their contracts as that way they still get paid. In that case, the retained cap hit would remain.
puckpedia.com
And, also this from CapFriendly:
As already stated, generally there are two scenarios that occur:
1. Early retirement (Example: Lecavalier), this is a true retirement, player retires from NHL without an injury, and they cease earning a salary. The team no longer has a cap hit (unless their is a recapture penalty, of which can't occur for any contract signed since the 2013 CBA)
2. "LTIRetire" The player is injured for the remainder of their career (See: Pronger, Hossa, MacArthur, etc, etc) and they "retire" from hockey; however, it is not an official retirement: The player continues to receive a salary, and therefore the team incurs a cap hit. Generally the contract is covered partially by insurance (usually 80%), and the team, if they need to exceed the upper limit, can place them on LTIR
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And another one:
Question
When a player goes on LTIR do they continue to get paid regular salary? Jake Muzzin is on LTIR, does he get paid full salary? If he retired, does he still get paid full salary until his contract expires? Is there then any financial incentive to retire, or does retiring hurt him?
Answer
Feb 24, 2023
Any player with an active contract gets paid the full contract amount, regardless of if they are healthy, on IR, or LTIR.
If a player retires before the contract expires, they no longer get paid. That's why it's very rare for injured players with active contracts to retire, they almost always just remain on IR or LTIR so they continue to get paid until the contract is completed.
puckpedia.com