For decades, turning 65 was a milestone that signaled the end of a long working life and the beginning of retirement in Canada. It was also the age when most Canadians began collecting Old Age Security (OAS) and Canada Pension Plan (CPP) benefits.
But in 2025, retirement looks very different. With longer life expectancies, inflation, and policy changes, the concept of retiring at 65 is quickly becoming outdated.
If you’re still banking on calling it quits at 65, it’s time to rethink your plan. The retirement landscape in Canada is evolving—and understanding the new OAS and CPP age rules is more important than ever.
Why Retiring at 65 Is Becoming Less Common
Retiring at 65 used to make sense when life expectancy was shorter, and costs were lower. But today:
- Life expectancy has increased to over 84 years on average, meaning retirement could last 25 to 30 years.
- The cost of living—especially housing, healthcare, and food—has surged, requiring more savings.
- Government incentives now reward those who delay claiming CPP and OAS, reshaping how and when people retire.
Canadians are working longer—not just because they have to, but because many want to remain active, engaged, and financially secure.
CPP and OAS: Claiming Early vs. Delaying
Both CPP and OAS offer flexibility in when you can start collecting benefits. You can start CPP as early as 60 and OAS at 65, but delaying comes with major perks.
| Benefit Type | Earliest Start Age | Standard Age | Latest Start Age | Max Increase (If Delayed to 70) |
|---|---|---|---|---|
| CPP | 60 | 65 | 70 | +42% |
| OAS | 65 | 65 | 70 | +36% |
- Start CPP at 60? You’ll receive 36% less than if you waited until 65.
- Delay CPP to 70? You’ll get 42% more than the base amount.
- OAS increases by 0.6% per month delayed after age 65—totaling a 36% increase at age 70.
This policy shift reflects the government’s understanding that people are living—and working—longer.
Is the Retirement Age Going Up in Canada?
Although there are no official plans to raise the retirement age, the idea isn’t off the table. Back in 2016, there was talk of pushing the OAS eligibility age to 67, but the plan was reversed.
Still, with the aging population and shrinking worker-to-retiree ratio, the pressure is mounting.
Other countries like:
- United States: Gradually raising retirement age to 67
- United Kingdom: Planning to increase retirement age to 68 by 2046
- Australia: Retirement age set at 67 for those born after 1957
Canada may eventually follow suit as fiscal realities shift.
More Seniors Are Staying in the Workforce
Data from Statistics Canada shows that 1 in 5 Canadians aged 65+ is still working—double the rate from the year 2000.
Why?
- Financial need
- Lack of sufficient savings
- Purposeful engagement
- Better health and longer lifespan
Retirement is no longer a fixed date but a flexible process, often involving part-time work, consulting, or even entrepreneurship.
How to Plan for a Flexible Retirement
Retirement is no longer a one-size-fits-all milestone. Here’s how to plan for the new normal:
| Key Planning Step | What to Consider |
|---|---|
| Know your numbers | Calculate projected CPP, OAS, savings, and other income sources |
| Estimate your expenses | Include healthcare, housing, travel, and inflation |
| Be flexible | Life changes—your retirement plan should be adjustable |
| Seek advice | Consult a financial planner to build a sustainable and realistic retirement plan |
Retiring Later Could Mean More Financial Security
Delaying retirement offers clear advantages:
- Higher CPP and OAS payouts
- More time to grow your savings
- Shorter retirement means fewer years of drawing from personal assets
However, your health, job satisfaction, and lifestyle goals should guide your decision—not just financial considerations.
The age of automatic retirement at 65 is ending. With longer lives, higher expenses, and more flexible government programs, Canadians are redefining what retirement looks like. The new rules for CPP and OAS encourage delaying retirement, rewarding those who plan strategically and work longer.
If you’re approaching retirement age, it’s time to rethink 65 as a deadline. Instead, consider it a starting point for building a personalized retirement plan that aligns with your goals and financial needs.
FAQs
Can I still retire at 65 and collect CPP and OAS?
Yes, 65 remains the standard age to begin receiving full CPP and OAS, but you may receive less if you start CPP earlier or more if you delay.
Will Canada raise the retirement age?
There’s no official plan, but due to demographic and financial pressures, the idea could resurface in future policy discussions.
Is it better to delay CPP and OAS until age 70?
Delaying increases your monthly benefits significantly. However, the right choice depends on your health, life expectancy, and financial needs.