For generations, age 65 was the golden ticket to retirement in Canada. That’s when you could count on receiving Old Age Security (OAS) and Canada Pension Plan (CPP) benefits. But the retirement landscape has changed—and it’s still shifting. With Canadians living longer, working later, and navigating evolving government rules, the idea of 65 as the default retirement age is fading fast.
Trends
The traditional path to retirement is no longer a one-size-fits-all model. Canadians are now living into their 80s and 90s, which means retirement savings need to stretch for 20 to 30 years—if not more. At the same time, living costs are rising, public pensions are under strain, and many Canadians are working beyond 65, either by choice or necessity.
Government policies are reflecting these changes. While 65 is still the standard age to claim OAS and CPP, there are now strong incentives to delay benefits—and possibly retirement itself.
CPP
The Canada Pension Plan gives you the option to start benefits as early as age 60 or delay them until 70. But the timing has big implications.
| Age to Start CPP | Monthly Benefit Impact |
|---|---|
| 60 | 36% reduction |
| 65 | No change |
| 70 | 42% increase |
In short, waiting until 70 gives you a monthly benefit that’s 42% higher than if you took it at 65. That’s a major boost, especially for those concerned about outliving their savings.
OAS
Old Age Security follows a similar trend. You can start at 65, but waiting up to age 70 earns you more every month.
| Age to Start OAS | Monthly Benefit Impact |
|---|---|
| 65 | Standard amount |
| 70 | 36% increase |
The increase for delaying OAS isn’t as steep as CPP, but it still adds up over time. For Canadians in good health with other sources of income, this strategy can lead to a more secure retirement.
Future
Although OAS still starts at 65, there’s ongoing discussion about raising the official retirement age. In 2012, the government proposed increasing the OAS age to 67—but that plan was later reversed in 2016. Still, with aging demographics and growing public pension costs, the topic could easily resurface.
Read Also- Social Security 2025 – Major Updates Every Retiree Needs to Know
Many other countries have already made this move. The U.S. is pushing full retirement to 67, while Australia and the U.K. are phasing in higher retirement ages. Canada may not be far behind if financial pressures continue.
Work
Working past 65 isn’t just a financial decision anymore—it’s becoming a social trend. According to Statistics Canada, about 20% of people aged 65 and older are still working today. That’s double the rate from the early 2000s. Whether it’s for income, mental engagement, or a sense of purpose, more seniors are staying in the workforce longer.
Strategy
Here’s how to build a retirement plan that works—regardless of whether you retire at 60, 65, 70, or later:
- Know Your Numbers: Understand how CPP and OAS benefits change depending on when you claim.
- Run the Math: Use online retirement calculators to project how long your savings will last.
- Stay Informed: Watch for policy updates. Government changes could affect your benefits and timeline.
- Phase Out Work: Consider part-time work or a gradual step back to extend your income without burning out.
Today, retirement in Canada isn’t tied to a date—it’s a flexible journey. Age 65 may still be the average, but it’s no longer a rule. The more you plan and adjust, the better prepared you’ll be to retire comfortably—whenever you decide the time is right.
FAQs
Is retirement age still 65 in Canada?
Yes, but incentives exist to delay benefits beyond 65.
Can I take CPP before 65?
Yes, as early as age 60, with reduced benefits.
Does delaying OAS increase payments?
Yes, delaying to age 70 boosts OAS by 36%.
Will Canada raise the OAS age soon?
There’s no current plan, but it may be debated again.
Are more seniors working after 65?
Yes, about 20% of Canadians 65+ still work.
