For decades, 65 was etched into Canadian culture as the magic number for retirement. You worked, you hit that age, and the system — Old Age Security (OAS) and the Canada Pension Plan (CPP) — carried you into your golden years.
But in 2025, the script has flipped. Rising costs, longer lifespans, and shifting pension incentives mean Canadians can no longer treat 65 as the universal “off switch” for work. For some, retirement is being delayed a few years. For others, it’s being reimagined entirely.
Why 65 Isn’t the Automatic Retirement Age Anymore
When the retirement age was originally set, Canadians weren’t living as long. Life expectancy now pushes well into the mid-80s, according to Statistics Canada, which means many retirees could spend 20 to 30 years relying on savings and benefits. That longevity is a blessing — but also a financial challenge.
Add in today’s cost of living crunch: housing prices outpacing wages, grocery bills up by double digits, and rising out-of-pocket healthcare costs. For many Canadians, walking away at 65 now means scaling back their lifestyle or finding side income to make ends meet.
And the system itself nudges people to stay on longer. The government has built in significant incentives for those who defer CPP or OAS, making “work a little longer” more attractive.
How CPP and OAS Timing Can Make or Break Your Plan
Here’s where the numbers matter.
- CPP (Canada Pension Plan): You can start as early as age 60, but you’ll lose 0.6% for every month before 65 — a 36% haircut if you take it right away. On the flip side, wait until 70, and you’ll see a 42% boost.
- OAS (Old Age Security): Similar deal. Hold off until 70, and you’ll see up to a 36% increase compared with starting at 65.
| Age You Start | CPP Monthly Amount* | Change vs. Age 65 | OAS Monthly Amount* | Change vs. Age 65 |
|---|---|---|---|---|
| 60 | Reduced (-36%) | Lower | Not Available | N/A |
| 65 | Base amount (standard) | 0% | Base amount | 0% |
| 70 | Increased (+42%) | Higher | Increased (+36%) | Higher |
*Exact dollar amounts depend on your contributions and government-set rates.
These levers give Canadians flexibility — but they also make “65” less automatic. Retiring earlier could mean decades of reduced income; waiting longer could be the difference between scraping by and living comfortably.
Could Canada Raise the Retirement Age?
This isn’t just coffee-shop chatter. Back in 2012, Ottawa announced that OAS eligibility would climb to 67. The plan was rolled back in 2016, but the underlying math hasn’t gone away: more retirees, fewer workers paying in, and a heavier pension bill.
Globally, the trend is clear. The U.S., U.K., and Australia have already nudged up their retirement ages. If federal finances get tighter, Canada could revisit the idea. For now, the official age remains 65, but the debate isn’t going anywhere.
More Canadians Are Working Past 65 — and Not Just for the Paycheque
Two decades ago, only about 10% of Canadians over 65 were still working. Today, it’s closer to 20% (StatsCan data). While money is part of the story, many say they stay on for purpose, structure, and social connection.
Retirement, in practice, is starting to look more like a dimmer switch than an on/off button. Part-time consulting, phased retirements, freelance projects, even volunteer work are bridging the gap.
Retirement Is Personal, Not Just a Date on the Calendar
Whether your target is 60, 65, or 70+, the real question isn’t what age, but can you afford it? A solid savings cushion, clear spending plan, and honest expectations about lifestyle will matter more than a calendar birthday.
Some Canadians dream of leaving early, even if it means living lean. Others like their careers and plan to keep going well past “traditional” retirement. Either choice works — as long as the numbers add up.
FAQs:
Is 65 still the retirement age in Canada?
Yes, but it’s no longer a universal cutoff. Canadians can take CPP as early as 60 or defer up to 70. OAS starts at 65 but can also be deferred to 70.
What’s the benefit of delaying CPP or OAS?
CPP grows by 0.7% per month after 65 (up to +42% at 70), while OAS grows 0.6% per month after 65 (up to +36% at 70).
Could the Canadian government raise the official retirement age?
It’s possible. A plan to raise OAS eligibility to 67 was announced in 2012 but cancelled in 2016. Budget pressures could revive the debate.
