In Canada, the traditional milestone at age 65—when Old Age Security (OAS) and the Canada Pension Plan (CPP) typically begin—no longer guarantees a comfortable retirement.
With people living longer, government incentives for delaying benefits, and rising living costs, the decision on when to retire is becoming more flexible. The age of 65 is no longer the automatic choice for millions of Canadians.
Canadians Living Longer—And Working Longer
- Life expectancy at 65 now extends by around 21 years, meaning many retirees live into their mid-80s or beyond.
- Nearly 15% of Canadians aged 65 and over are still working, a major shift from previous generations.
- The average planned retirement age has risen from 64.3 to 65.3, with many still unsure if they can afford to stop working.
CPP & OAS: Delay Benefits, Boost Your Income
Delaying OAS or CPP can significantly increase your monthly payments. Here’s how:
| Program | Delay Months | Monthly Boost per Month Delayed | Maximum Boost by Age 70 |
|---|---|---|---|
| CPP | Up to 60 | 0.7% | +42% |
| OAS | Up to 60 | 0.6% | +36% |
Key takeaway:
- Starting early (CPP at 60 or OAS at 65) means smaller monthly payments for life.
- Waiting until 70 can increase your income by 36–42% for the rest of your life.
Why Retiring at 65 Alone May Fall Short
- Retirement can last 20 years or more, requiring larger savings and careful financial planning.
- Rising housing costs, food prices, and healthcare expenses are putting pressure on retirement income.
- Government incentives to delay benefits mean early retirement often comes with a trade-off in lifetime income.
Is Canada Raising the Retirement Age?
While there is currently no confirmed plan to raise the OAS or CPP eligibility age beyond 65, demographic pressures such as an aging population, increased life expectancy, and the cost of public pension programs could lead to future changes.
The New Retirement Reality
The idea of stopping work completely at 65 is evolving. Many Canadians are adopting phased retirements, working part-time, or taking bridge jobs before fully leaving the workforce. Planning when to claim OAS and CPP benefits has become just as important as deciding when to retire.
With Canadians living longer and retirement costs rising, the once-standard age of 65 is now just one option among many.
Delaying OAS and CPP benefits can lead to significantly higher lifetime income, and for many, working a few extra years offers both financial and personal rewards. Retirement today is about flexibility—choosing the age and approach that best fits your health, finances, and lifestyle.
FAQs
Can I still start CPP or OAS at 65?
Yes, but you’ll miss out on the larger monthly payments you’d get by delaying to age 70.
Are more Canadians working past 65?
Yes. A growing number of seniors remain in the workforce, either for financial security or to stay active and engaged.
Could the retirement age change in the future?
It’s possible. Economic and demographic pressures may lead to policy changes, though no official adjustments have been announced.
1. Can I still start CPP or OAS at 65?
Yes, but you’ll miss out on the larger monthly payments you’d get by delaying to age 70.
2. Are more Canadians working past 65?
Yes. A growing number of seniors remain in the workforce, either for financial security or to stay active and engaged.
3. Could the retirement age change in the future?
It’s possible. Economic and demographic pressures may lead to policy changes, though no official adjustments have been announced.