Traditionally, turning 65 marked the moment when Canadians began the transition from career to leisure, unlocking benefits from the Old Age Security (OAS) and the Canada Pension Plan (CPP).
Today, however, this milestone is no longer seen as the fixed point of retirement. Growing lifespans, evolving work patterns and economic pressures are changing how Canadians approach their later years.
The Traditional Retirement Age Paradigm
For many years, age 65 served as the standard point for retirement benefits:
- OAS eligibility began at 65.
- The Guaranteed Income Supplement (GIS), available to low-income seniors, also kicked in at age 65.
- The CPP allowed early access at age 60 (with reduced payments), or the standard age at 65.
- Many employer-sponsored pension plans aligned with retirement at 65.
Because workforce and life-expectancy patterns were very different when these programs were established, the 65-year benchmark made sense at the time.
Why Canada Is Moving Beyond Age 65 for Retirement
Several major forces are reshaping retirement timelines in Canada:
- Longer lifespans: With Canadians now living well into their 80s on average, sustaining retirement income for decades is a growing concern.
- Financial pressures: An ageing population and fewer workers supporting retirees raise funding risks for public and private pension plans.
- Extended working lives: Many people are healthier, more active and more engaged in work beyond 65—either by choice or necessity.
- Policy shifts: Governments and pension administrators are gradually adapting rules to promote later retirement or more flexible ages.
These factors combined mean that retiring at 65 is increasingly seen as just one path rather than the only path—giving rise to a more individualized and dynamic model.
New Policies and Proposed Changes to Retirement Age
Although 65 remains the standard in many programs, several changes are either underway or being considered:
- For OAS, raising eligibility from 65 to 67 has been under discussion to help budget sustainability.
- The CPP already offers flexible retirement between ages 60 and 70: delaying receipt past 65 increases monthly payments.
- Employer-pension plans are also moving toward incentives for later retirement, meaning 65 is no longer the automatic exit age.
These shifts give Canadians more freedom to choose when they stop working—but also place greater importance on planning ahead.
Economic and Social Impacts of Delaying Retirement
Moving retirement past 65 (or being flexible about it) carries both opportunities and challenges:
- Financial security: Working longer and delaying benefit receipt can boost lifetime income and reduce public-system pressure.
- Workforce benefits: Older workers staying active help fill labour gaps and add skills to the economy.
- Health and lifestyle: Continuing to work may support well-being but may also create imbalance for those in physically demanding jobs.
- Equity concerns: Not everyone has the same capacity to work longer—health, job type and income-level matter.
Policies need to carefully balance these aspects, ensuring fairness for all senior Canadians regardless of their background.
How Canadians Should Adjust Their Retirement Planning
With the retirement landscape evolving, individuals should consider the following strategies:
- Adopt a flexible retirement age mindset: Rather than aiming strictly for 65, plan for a window between 60–70 that fits your goals and health.
- Maximise CPP benefits: Delaying benefit start beyond 65 can significantly raise monthly income, sometimes by up to 42 % at age 70.
- Consider extending work life: If your health allows and you enjoy your work, staying employed longer may provide both financial and personal reward.
- Plan for possible OAS eligibility changes: If the eligibility age is raised, ensure you have additional savings or alternative income streams.
- Stay informed and review your plan: Rules and thresholds change. Regularly check policy updates, reassess your needs and consult a financial advisor.
The era of retiring automatically at age 65 in Canada is evolving into a period of choice, flexibility, and personalised timing. With extended lifespans, shifting workforce dynamics and emerging policy reforms, Canadians now have broader options—and added responsibilities—to shape their retirement.
Whether that means working a few more years, delaying benefit receipt or selecting a different lifestyle path altogether, the key is to start planning now, stay adaptable and secure the future you envision.
FAQs
Can I begin drawing CPP before age 65?
Yes—CPP allows early retirement from age 60 with reduced payments. Alternatively, starting later up to age 70 increases your monthly benefit.
What happens if the OAS eligibility age changes from 65 to 67?
If the age is raised, you would need to wait longer to receive OAS benefits. This makes additional retirement savings or alternative income streams more important.
How will working past age 65 affect my pension plan or employer benefits?
Many employer-pension plans now incentivise later retirement, and delaying benefit receipt can increase payouts. Working longer may also enhance your financial security and give you more flexibility in retirement.