For decades, turning 65 meant retirement was finally here. Canadians counted on collecting Old Age Security (OAS) and Canada Pension Plan (CPP) benefits at this golden age. But in 2025, that reality is changing.
With longer life expectancy, economic pressures, and shifting government incentives, the traditional idea of retiring at 65 is no longer a one-size-fits-all solution.
Here’s what you need to know about how retirement is evolving in Canada, what these changes mean for your finances, and why it might be time to rethink your retirement timeline.
Changing Retirement Norms in Canada
Retirement at 65 is fading fast. Canadians are living longer—often into their 80s or 90s—which means retirement savings need to last up to 30+ years.
Add in rising costs of living, inflation, and healthcare, and it’s easy to see why more people are choosing—or needing—to work longer.
In response, the Canadian government has implemented policy shifts that reward delayed retirement. While you can still access CPP as early as 60 and OAS at 65, delaying your claim comes with substantial financial bonuses.
What’s Happening With CPP in 2025?
The Canada Pension Plan (CPP) remains available as early as age 60, but claiming early leads to reduced monthly benefits. Alternatively, waiting until age 70 can result in a 42% increase in your payments.
CPP Benefits by Age
| Age You Start CPP | Adjustment to Benefit |
|---|---|
| 60 | 36% reduction |
| 65 | No adjustment (standard rate) |
| 70 | 42% increase |
Delaying your CPP not only increases your monthly income but can also help reduce the risk of outliving your savings.
Old Age Security (OAS) Delays Pay Off Too
Like CPP, Old Age Security (OAS) also offers increased payouts if you defer collecting. You can choose to begin receiving OAS anytime between 65 and 70.
OAS Benefits by Age
| Age You Start OAS | Monthly Benefit Adjustment |
|---|---|
| 65 | Standard amount |
| 70 | 36% increase |
Delaying your OAS can provide a lifelong boost in your monthly pension—a huge win if you live well into your 80s or 90s.
Signs That Retirement at 65 May Disappear
Although there are no official plans to raise the eligibility age for CPP or OAS right now, the government has considered it in the past. In 2012, a policy was announced to gradually increase the OAS age to 67, though it was reversed in 2016.
However, as public pension costs rise and more people live longer, the government may revisit this option.
Many countries, including the UK, US, and Australia, have already raised their retirement ages in phases. Canada may follow suit—especially if budgetary constraints grow.
Canadians Are Working Longer Than Ever
A growing number of Canadians over 65 are still working. In 2000, just 10% of seniors remained in the workforce. Today, it’s closer to 20%, and in some provinces, even higher.
Reasons include:
- Financial necessity
- Lack of retirement savings
- Rising housing and healthcare costs
- Desire to stay active and engaged
Planning Ahead: Why Flexibility Is Key
Since retirement is no longer tied to a set age, flexibility is essential. Your financial plan should adapt to both your personal goals and government policy shifts.
Tips for Future-Proofing Your Retirement:
- Understand your benefits: Know how CPP and OAS work, including penalties and bonuses for early or late claims.
- Use retirement calculators: Estimate how long your savings will need to last.
- Stay up to date: Policy changes can come quickly—stay informed through trusted government and financial resources.
- Consider phased retirement: Gradually reduce work hours before full retirement to stretch income and lower stress.
Fact Check: Where Things Stand Now
| Benefit | Earliest Start Age | Standard Age | Delayed Max Age | Delayed Bonus |
|---|---|---|---|---|
| CPP | 60 | 65 | 70 | Up to 42% more/month |
| OAS | 65 | 65 | 70 | Up to 36% more/month |
There are no confirmed plans to raise the retirement age yet, but the government continues to evaluate sustainability. Delaying benefits remains a powerful strategy to boost lifetime income.
The retirement landscape in Canada is shifting—and fast. While age 65 was once the standard, many are now working longer, delaying benefits, and rethinking what retirement really means. With incentives to wait, potential age increases on the horizon, and rising life expectancy, your best retirement plan is one built on flexibility and awareness.
Don’t get caught planning for a system that’s evolving—retiring smart now means adapting to a new age of retirement.
FAQs
Can I still retire at 65 in Canada?
Yes, you can still retire at 65 and collect OAS and CPP at standard rates, but delaying can increase your monthly payments.
Will CPP and OAS eligibility ages increase soon?
Not currently, but rising costs and demographic changes may lead the government to reconsider this in the future.
Is it better to take CPP at 60 or wait until 70?
Waiting until 70 offers the highest monthly payout (up to 42% more), but the best choice depends on your financial needs, health, and life expectancy.