For a long time, 65 was the magic number for Canadians. You worked, you hit that milestone birthday, and you hung up your hat. Old Age Security (OAS) and Canada Pension Plan (CPP) kicked in, and you could finally swap the morning commute for leisurely coffee runs. But in 2025, that tidy picture is getting blurrier. People are living longer, prices keep climbing, and retirement is less of a cliff dive into leisure and more of a slow wade into deeper waters. If you’re still laser-focused on retiring at 65, it might be time for a second look. For some, the answer will be working a few extra years; for others, it’s rethinking what “retirement” even means. Either way, the calendar alone no longer gets to call the shots.
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Why “65” Isn’t the Automatic Retirement Age Anymore
Back when life expectancy hovered much lower, retiring at 65 made sense. Now, the average Canadian can expect to live well into their mid-80s (Statistics Canada), which means a retirement could stretch 20, even 30 years. Sounds nice… until you realize that’s decades of living expenses without a steady paycheck. The longer you live, the more strain on personal savings and on public programs like CPP and OAS.
Then there’s the cost of living. Housing prices have outpaced wages, groceries are pricier, and healthcare—though largely public—still comes with out-of-pocket expenses. Many Canadians are finding that ending work at 65 means either scaling back their lifestyle or finding extra income.
And finally, the pension system itself is nudging people toward later retirements. The Government of Canada has built in sweeteners for those who delay benefits, making “wait a little longer” sound pretty tempting.
How CPP and OAS Timing Can Make or Break Your Plan
CPP can start as early as 60, but the penalty is steep: 0.6% less for every month before 65. Start right at 60, and you’re looking at a 36% cut compared to waiting until 65. On the flip side, delaying up to age 70 adds 0.7% per month—meaning a 42% boost if you can afford to hold off.
OAS works the same way in spirit. You can defer up to age 70 and snag a 36% bump. That’s the government’s way of saying, “If you keep working, we’ll make it worth your while.”
| Age You Start | CPP Monthly Amount* | Change vs. Age 65 | OAS Monthly Amount* | Change vs. Age 65 |
|---|---|---|---|---|
| 60 | -36% | Lower | Not Available | N/A |
| 65 | Base Amount | 0% | Base Amount | 0% |
| 70 | +42% | Higher | +36% | Higher |
*Exact amounts depend on your contribution history and government-set rates.
Could Canada Raise the Retirement Age?
This isn’t just speculation—Canada actually announced in 2012 that OAS eligibility would rise to 67, but the plan was scrapped in 2016. Still, the math hasn’t changed: more retirees, fewer workers paying in, and a growing pension bill. Other countries like the U.S., U.K., and Australia are already pushing up retirement ages. If budget pressures keep mounting, Canada could dust off that proposal.
More People Are Working Past 65—And Not Just for the Money
Two decades ago, only about 10% of Canadians over 65 were still in the workforce. Today, it’s closer to 20% (Statistics Canada). Yes, money’s a factor. But many older adults also say they want the social connection, structure, or purpose work provides. Retirement, in practice, has become more like a dimmer switch than an on/off button—phased, part-time, consulting, or even volunteer roles filling the gap.
Retirement Is a Personal Timeline—Not a Date on the Calendar
Whether your target is 60, 65, or 70+, the real question isn’t “What age?” but “Can I afford it?” A healthy nest egg, clear spending plan, and realistic expectations matter more than a fixed birthday. Some people prefer to keep working simply because they like it; others want out as soon as possible, even if it means a leaner lifestyle.
FAQs
Can I still retire at 65 in Canada?
Yes—but whether it’s comfortable depends on your savings, pension timing, and cost of living.
Is Canada raising the retirement age to 67?
Not right now. The idea was dropped in 2016, but it could resurface.
Should I delay CPP or OAS?
It depends on your health, life expectancy, and finances. Delaying increases the monthly amount, but you’ll collect for fewer years.
Can I work while collecting OAS?
Yes. But if your income is high enough, part of your OAS may be clawed back.
What’s the best retirement age?
There’s no one-size-fits-all. It comes down to health, money, and lifestyle goals.
