For decades, age 65 was seen as the definitive age for retirement in Canada. It was when Canadians could confidently access Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. But that long-standing milestone is rapidly evolving. With people living longer, working later, and governments reconsidering the sustainability of public pensions, there are growing signals that CPP and OAS retirement age changes in Canada may happen again—and sooner than many expect.
Here’s a deep dive into what’s changing, what could change again, and how to prepare for a more flexible—and uncertain—retirement future.
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Changing Retirement Norms in Canada
Canadians are living longer than ever before. The average life expectancy now stretches well into the 80s, meaning retirement savings and benefits must cover a longer period of non-working life. Combine that with rising living costs, pension sustainability concerns, and government policy shifts, and the result is a growing trend: more Canadians are delaying retirement—or choosing not to retire at all.
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What’s Happening With CPP?
The Canada Pension Plan (CPP) still allows Canadians to start collecting benefits as early as age 60, but doing so comes with a penalty. On the flip side, delaying CPP offers a substantial reward.
| Age You Start CPP | Monthly Benefit Adjustment |
|---|---|
| 60 | 36% reduction |
| 65 | Standard (no adjustment) |
| 70 | 42% increase |
Waiting until 70 means receiving 42% more per month than if you started at 65. With the CPP enhancement gradually rolling out since 2019, these incentives are designed to encourage Canadians to wait longer, easing pressure on the system.
OAS Delays Pay Off Too
Old Age Security (OAS), a separate federal benefit, follows a similar pattern. It becomes available at age 65, but delaying until 70 results in a 36% monthly increase.
| Age You Start OAS | Monthly Benefit Adjustment |
|---|---|
| 65 | Standard (no adjustment) |
| 70 | 36% increase |
These incentives reflect the reality that retirement no longer looks the same for every Canadian. While some rely on public pensions as their primary income, others choose to stay employed or transition gradually into retirement.
Will CPP and OAS Retirement Ages Increase Again?
While Canada currently allows retirement at 65, the idea of pushing this age higher has resurfaced in policy circles.
- In 2012, the federal government announced plans to increase the OAS eligibility age from 65 to 67, but that decision was reversed in 2016.
- However, economic pressures have only intensified since then—due to an aging population, growing benefit costs, and fewer working-age Canadians contributing to the system.
Many other countries, including the U.S., U.K., and Australia, have already increased—or are planning to increase—their public pension eligibility ages. This global shift suggests that Canada could revisit retirement age changes again in the near future.
Canadians Are Already Working Longer
Data from Statistics Canada shows a steady increase in employment among people aged 65 and older. In 2000, only about 10% of seniors were working. Today, it’s closer to 20%, and climbing.
Reasons include:
- Rising housing and healthcare costs
- Delayed mortgage and debt repayment
- Desire for continued purpose, structure, and social engagement
In short, Canadians are not just living longer—they’re also working longer.
Planning Ahead: Flexibility is the New Retirement Strategy
Given these trends, retirement planning in Canada must move beyond the rigid age-65 mindset. Here are key steps for a more adaptive approach:
- Understand your CPP and OAS options
Learn how much you’ll receive at each starting age, and how inflation and clawback thresholds might affect your income. - Consider phased retirement
Rather than stopping work cold-turkey, gradually reduce hours or shift roles to keep earning and delay benefit collection. - Stay informed on policy shifts
Monitor updates from the Government of Canada regarding potential changes to retirement age or benefit structures. - Use retirement calculators
Gauge how long your savings need to last and what benefit amounts to expect. - Review your financial plan regularly
With policy and economic conditions changing, staying flexible is critical.
Fact Check: What You Need to Know Now
- CPP can still be claimed as early as age 60, with reduced payments.
- OAS remains available at age 65, with the option to delay for higher monthly benefits.
- No official legislation has passed to raise the retirement age, but government reviews and long-term sustainability plans continue.
- Delaying CPP to age 70 results in up to 42% more per month.
- Delaying OAS to age 70 adds up to 36% more per month.
FAQs
Can I still retire at 65 in Canada?
Yes. You can begin receiving OAS at 65 and CPP between ages 60–70, depending on your preference and financial situation.
Will CPP and OAS eligibility ages increase soon?
Not yet—but pressure is building, and experts warn the government may revisit the idea due to fiscal sustainability concerns.
Is it better to take CPP at 60 or 70?
If you can afford to wait, 70 offers the highest monthly payout. However, individual health, work, and financial factors matter.
Can I work and collect CPP or OAS?
Yes. You can receive benefits while working. CPP contributions may still apply until age 70, unless you opt out.
Final Thoughts
Canada’s retirement age isn’t fixed—it’s evolving. With increasing life expectancy, shifting government incentives, and a growing likelihood of CPP and OAS retirement age changes in Canada again, planning for the future requires more flexibility than ever.
Whether you aim to retire early, work into your 70s, or pursue phased retirement, the key is staying informed and adaptable. Retirement isn’t about reaching a specific number anymore—it’s about building a plan that works for your life.