Retirement at 65 — the once golden number etched into Canada’s collective consciousness — is quietly fading into history. For decades, workers built their financial lives around it: slogging until 65, cashing in their Canada Pension Plan (CPP) and Old Age Security (OAS), and settling into a slower, steadier rhythm. But not anymore. Longer lives, shifting work patterns, and government reform are rewriting the retirement rulebook. And the latest twist? From October 2025, the official age for full CPP and OAS benefits is slated to rise to 67 — marking one of the most significant pension shifts in recent Canadian history.
Goodbye to Retirement at 65
Let’s be real — Canadians aren’t just living longer; they’re living better. Many in their late sixties are still working, consulting, or even starting small businesses. That’s partly why Ottawa’s new plan focuses less on forcing retirement at a fixed age and more on flexibility and sustainability.
Here’s the trade-off: retiring later means bigger monthly cheques. A person who delays CPP until age 70 could receive up to 42% more than if they took it at 65. On the flip side, those who retire early at 60 will see around 36% less each month.
This approach not only rewards patience but also helps the system stay afloat. With Canadians living well into their 80s and beyond, pension payouts stretch further than ever. According to Statistics Canada, average life expectancy has reached nearly 82 years — meaning retirees might need income for 20+ years post-retirement.
Why the Shift to 67?
It’s not arbitrary. Canada’s aging population is expanding fast — by 2030, nearly one in four Canadians will be 65 or older. The federal government, drawing lessons from international peers like the U.S. and the U.K. (both inching toward retirement ages near 67), says the adjustment is meant to “future-proof” the pension system.
The change, set for October 2025, will affect future pensioners only. Current recipients and those already retired will stay on the old system — no reductions, no clawbacks.
Finance officials say the policy aims to encourage Canadians to stay in the workforce longer if they choose, keeping the economy active and tax revenues steady.
The Mechanics of CPP and OAS
The Canada Pension Plan (CPP) is contribution-based — meaning you earn benefits in proportion to how much you’ve paid in through your working years. You can start as early as 60 or as late as 70. The “sweet spot” is 65, where the average maximum benefit stands around $1,433 per month for those with full contributions.
Old Age Security (OAS), meanwhile, depends on residency rather than work contributions. You must have lived in Canada for at least 10 years since age 18 to qualify, and for the full amount, you’ll need 40 years of residency.
Come October 2025, OAS base rates are expected to be:
| Age Group | OAS Monthly Amount (Oct 2025) |
|---|---|
| 65–74 | $740.09 |
| 75+ | $814.10 |
These payments are indexed quarterly to inflation — a safeguard for seniors against rising living costs, as outlined on Canada.ca.
Applying for CPP and OAS
Applying is easier than it used to be. The government has pushed most applications online through My Service Canada Account (MSCA), available on www.canada.ca.
You’ll need:
- Valid government-issued photo ID (passport or driver’s license)
- Social Insurance Number (SIN)
- Proof of address
- Banking details for direct deposit
- Proof of age (birth certificate or equivalent)
Once applied, you can track your status in MSCA or call 1-800-277-9914 for updates.
How Much You’ll Get Based on When You Retire
| Age You Start CPP | % of Full Pension | Example Monthly Amount (Full = $1,433) |
|---|---|---|
| 60 | 64% | $915 |
| 65 | 100% | $1,433 |
| 70 | 142% | $2,030 |
It’s a classic “pay now or pay later” scenario — the longer you wait, the more you earn.
Checking Your Application or Benefits
- Log in to My Service Canada Account
- Select My Applications → CPP/OAS Status
- Review updates or requests from Service Canada
- Keep your contact info current to receive instant notifications
FAQs:
What is the current retirement age in Canada?
Right now, the standard age remains 65, though changes in 2025 will raise it to 67 for new applicants.
Can I still take CPP at 60?
Yes, you can, but your payments will be permanently reduced by 0.6% per month before age 65 — a total cut of 36%.
What happens if I delay CPP until 70?
You’ll earn 0.7% more per month after 65, for a total boost of 42% if you wait until 70.
