For decades, 65 was the magic number when Canadians expected to step into retirement. It was the age you could collect Old Age Security (OAS) and Canada Pension Plan (CPP) benefits. But that traditional milestone is shifting. Canadians are living longer, working later, and facing evolving government policies—especially around public pension eligibility. If you’re planning your retirement around age 65, it’s time to rethink your strategy.
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Changing Retirement Norms in Canada
The concept of retiring at 65 is starting to fade. Several factors are pushing this shift: increasing life expectancy, rising living costs, and the changing structure of public pensions. The average Canadian now lives well into their 80s, meaning retirement savings need to last longer than ever before.
In response, the Canadian government is gradually adjusting how and when benefits are paid. While CPP and OAS are still available starting at 65, newer policies and incentives are encouraging Canadians to delay retirement—and the longer you wait, the more you’ll receive.
What’s Happening With CPP?
The Canada Pension Plan is still available as early as age 60, but there are penalties for taking it early and bonuses for delaying it.
| Age You Start CPP | Monthly Benefit Adjustment |
|---|---|
| 60 | 36% reduction |
| 65 | No adjustment |
| 70 | 42% increase |
So, if you delay CPP until age 70, your monthly payment will be 42% higher than if you took it at 65. That’s a significant boost for those who can afford to wait.
Old Age Security (OAS) Delays Pay Off Too
OAS remains available starting at age 65, but similar to CPP, delaying up to age 70 will increase your monthly benefit.
| Age You Start OAS | Monthly Benefit Adjustment |
|---|---|
| 65 | Standard amount |
| 70 | 36% increase |
This delay option was introduced to reflect modern retirement patterns. However, it’s not mandatory—you can still start collecting OAS at 65 if you choose.
Clues That Retirement Age Could Be Raised in the Future
There’s ongoing debate about raising the official retirement age beyond 65. Although Canada walked back a plan in 2016 to gradually push OAS eligibility to 67, the economic pressures haven’t disappeared.
Countries like the U.S., U.K., and Australia have already increased or are phasing in higher retirement ages. Canada may eventually follow suit—especially if pension sustainability becomes a bigger concern.
Canadians Are Working Longer
Statistics Canada data shows a steady increase in employment among people aged 65 and older. In 2000, only about 10% of Canadians over 65 were working. Today, it’s closer to 20%. For many, it’s not just about money—continued work can offer purpose, structure, and social engagement.
Planning Ahead: Flexibility Is Key
The key takeaway? Retirement age in Canada is no longer a fixed target. Whether you’re aiming for 60, 65, or later, what matters is building a plan that’s flexible and realistic. Here are a few tips:
- Understand your benefits: Know how CPP and OAS work, and how delaying affects your income.
- Estimate your longevity: Use calculators to gauge how long your savings need to last.
- Stay informed on policy changes: Government rules may shift again in the coming years.
- Consider phased retirement: Easing out of full-time work can help stretch your savings and reduce stress.
Whether you want to stop working at 55 or continue past 70, retirement today is more of a personal journey than a set age. Flexibility, financial literacy, and informed planning are the new essentials.
Fact Check
As of now, the eligibility age for Old Age Security (OAS) in Canada remains at 65, and the Canada Pension Plan (CPP) can be claimed as early as age 60 with a reduced benefit. If you delay CPP until age 70, your monthly payment increases by up to 42%. Similarly, delaying OAS until age 70 boosts your benefit by up to 36%. There are no official plans currently in place to raise the eligibility age, but the government has previously considered it and may revisit the idea in the future due to demographic and economic pressures.
Reference Link:
Government of Canada – Public Pensions: CPP and OAS
FAQs:
Can I still retire at 65 in Canada?
Yes, you can. But whether that’s financially viable depends on your savings, CPP and OAS timing, and cost of living.
Will CPP and OAS eligibility ages increase soon?
There are no confirmed changes as of now, but rising life expectancy and fiscal pressure make it a possibility in the future.
Is it better to take CPP at 60 or 70?
It depends on your health, life expectancy, and financial situation. Waiting increases the benefit, but you’ll receive it for fewer years.
Can I work and collect CPP or OAS?
Yes, you can work while collecting both. However, your income could trigger a clawback on OAS if it’s too high.
