The traditional retirement age of 65 in Canada, once seen as a definitive milestone marking the end of work life and the beginning of relaxation and personal pursuits, is evolving significantly. Due to longer life expectancies, now often into the 80s, as well as changes in career paths and improved healthcare, many Canadians experience retirement periods stretching over 20 years or more. This extended retirement phase has led to rethinking when and how to retire.
This shift reflects a new reality where retirement age is no longer fixed at 65 but personalized based on health, finances, and lifestyle goals, encouraging phased retirement or extended working years to ensure financial security throughout longer lifespans. Overall, the concept of retirement in Canada is moving away from a single fixed age to a more flexible and individualized approach.
Goodbye to Retiring at 65
The long-standing tradition of retiring at age 65 is fading due to longer life expectancies, changing work patterns, and financial realities. Canadians now face flexible retirement options with the OAS and CPP, which allow taking benefits anywhere from age 60 to 70. Delaying benefits beyond 65 increases monthly payments significantly up to 36% for OAS and around 42% for CPP if claimed at 70.
Retirement is no longer determined by a single age, which is a trend that is reflected in this shift. Instead, individuals can tailor their retirement timing based on personal health, financial needs, and preferences. The shift encourages later or phased retirement, helping Canadians better manage longer retirement periods both financially and socially. This new paradigm represents a departure from the traditional, fixed retirement age, ushering in a more flexible and sustainable approach to post-career life.
New Age For Collecting OAS & CPP Changes Everything In Canada
The new age for collecting OAS and CPP benefits in Canada offers greater flexibility and changes retirement forever. Instead of retiring strictly at 65, Canadians can start collecting CPP as early as 60 (with reduced payments) or delay up to 70 to increase benefits by up to 42%. Similarly, OAS benefits begin at 65 but can be deferred until 70 for a 36% higher monthly amount. These changes reflect longer lifespans and changing work patterns, allowing retirees to tailor their retirement timing to their financial needs and health, moving away from the old fixed retirement age concept.
“CRA confirms the official retirement ages remain unchanged in 2025 and warns against misinformation about increased eligibility ages or sudden benefit cuts.”
Proposed Age Increases for OAS and CPP
The proposed age increases for Old Age Security (OAS) and Canada Pension Plan (CPP) in Canada are under discussion but not yet enacted. Currently, OAS eligibility begins at 65, with the option to delay up to age 70 for higher monthly benefits. CPP can be claimed between ages 60 and 70, with early claiming reducing benefits and delayed claiming increasing them.
However, some policymakers and experts have proposed raising the eligibility age for both OAS and CPP to 67 for those born after 1960 to help ensure the financial sustainability of these programs amid an aging population and rising costs. If implemented, this would mean future retirees would have to wait longer to receive these benefits, necessitating adjustments in personal retirement planning and savings strategies. Future retirees would have to wait longer to get these benefits if this were to be implemented, which would need changes to personal retirement planning and savings plans.
Current State of OAS and CPP
The current state of Old Age Security (OAS) and Canada Pension Plan (CPP) in 2025 reflects steady, inflation-adjusted benefits as the cornerstone of retirement income in Canada.
| Benefit Type | Age Group | Maximum Monthly Payment | Details |
|---|---|---|---|
| OAS | 65 to 74 | $740.09 | Payments adjusted quarterly based on CPI; eliminated if income exceeds $148,451 annually |
| OAS | 75 and over | $814.10 | 10% increase on OAS regular pension for 75+ age group |
| CPP | Retirement (at 65) | $1,433.00 | Based on contributions and earnings, subject to COLA |
| CPP | Average new retiree | $848.00 | Reflects average benefit amount for retirees at age 65 |
- OAS can be deferred up to age 70 for up to 36% higher monthly benefits.
- CPP can be claimed from age 60 to 70; delayed claiming increases monthly payments by up to 42%.
- Both programs provide critical retirement income and are indexed to inflation.
New Update On Goodbye to Retiring at 65
“The official retirement age for Old Age Security remains at 65, with no confirmed increase to 67 or beyond as of 2025. The Canada Pension Plan continues to offer flexible retirement between the ages of 60 and 70, with adjustments made to monthly payment amounts based on the age you start receiving benefits. Any rumors about increasing eligibility ages or sudden pension cuts are false and unsubstantiated.”
“Seniors should rely on official CRA and government sources and avoid misinformation circulating on social media. Both OAS and CPP benefits are adjusted regularly for inflation, and the Guaranteed Income Supplement (GIS) provides additional support for low-income seniors.”- CRA official guidance
FAQs On Goodbye to Retiring at 65
Is retirement age still 65?
No, you can start OAS at 65 or delay until 70 for bigger payments. CPP can start anytime from 60 to 70 with corresponding payment adjustments.
How much can benefits increase by delaying?
OAS increases by 0.6% for each month delayed after 65 (up to 36% more at 70). CPP increases by 0.7% monthly delay, up to about 42% more at 70.
Are there plans to raise the official retirement age?
No official change as of 2025; rumors about raising OAS eligibility to 67 have not been confirmed.
Can you work and still receive OAS/CPP?
Yes, working while receiving benefits is allowed; CPP contributors under 65 keep paying in, possibly increasing future benefits.
Are OAS and CPP benefits taxable?
Yes, both are considered taxable income.
