For decades, age 65 was the golden number — the finish line when Canadians waved goodbye to work and welcomed retirement. But that milestone is now evolving.
With Canadians living longer, staying healthier, and continuing to work later in life, the idea of “retirement at 65” no longer fits everyone.
Recent updates to Canada Pension Plan (CPP) and Old Age Security (OAS) give people more control over when and how they retire — creating a new, flexible era for Canada’s retirees.
The Changing Face of Retirement
Longer, Healthier Lives
The average Canadian now lives about 81.7 years, according to Statistics Canada — meaning retirement can last 20 years or more.
While longevity is a gift, it also poses a challenge: your savings must last longer. That’s why many Canadians are rethinking when to leave the workforce and how to stretch their income.
More Flexibility in Pensions
Today, both CPP and OAS let retirees choose when to start their benefits — anywhere between 60 and 70. The earlier you start, the smaller your payments. The longer you wait, the larger the benefit.
- CPP can start at age 60 (with reductions) or be delayed until 70 (for up to 42% more).
- OAS, traditionally beginning at 65, can also be deferred until 70, adding up to 36% more to your monthly payment.
This flexibility means you can design your own retirement timeline based on your finances, health, and lifestyle.
Understanding the Numbers
| Program | Typical Start Age | Earliest Start | Latest Start | Effect of Delay | Average Monthly Payment (2025) |
|---|---|---|---|---|---|
| CPP | 65 | 60 | 70 | +0.7% per month delayed (up to +42%) | Avg. $899.67, Max. $1,433 |
| OAS | 65 | 65 | 70 | +0.6% per month delayed (up to +36%) | 65–74: $740.09, 75+: $814.10 |
Delaying benefits not only increases your lifetime pension income but can also provide financial protection against inflation and longer lifespans.
Why Retiring at 65 Is No Longer the Default
Financial Reasons
Rising living costs, market fluctuations, and longer lifespans make retiring at 65 less practical. Working a few extra years can:
- Increase your CPP and OAS benefits through deferrals
- Give more time to grow RRSP and TFSA savings
- Reduce the risk of depleting retirement funds early
Health and Lifestyle
Many Canadians remain active, capable, and motivated past 65. Working part-time or consulting allows them to stay mentally sharp and socially connected while earning extra income.
Flexible Work Options
The modern workforce supports gradual retirement. With remote work, freelancing, and hybrid roles, people can scale back instead of stopping altogether — helping retirees stay financially secure and fulfilled.
Advantages of Working Beyond 65
| Advantage | Benefit to You |
|---|---|
| Longer Savings Window | More years to contribute to RRSPs and TFSAs |
| Higher Pension Benefits | Delaying CPP/OAS means larger monthly payments |
| Debt Reduction | Continued income can help pay off mortgages and loans |
| Investment Growth | Reduces the need to withdraw savings too early |
| Better Security | Less dependence on volatile investments |
According to Employment and Social Development Canada, nearly 25% of Canadians aged 65–69 remain in the workforce — a sharp rise from a decade ago.
Challenges and Trade-Offs
Working longer isn’t ideal for everyone.
- Health issues can limit employability.
- Ageism remains in certain industries.
- OAS Clawback may reduce benefits if your income exceeds about $90,000 per year.
Balancing health, lifestyle goals, and income needs is crucial when deciding whether to retire or keep working.
Planning for a Longer Working Life
- Check your benefits using online CPP/OAS calculators.
- Stay healthy — physical and mental wellness are key to a successful later career.
- Negotiate flexibility — part-time work or remote contracts are increasingly available.
- Update your skills to stay competitive in the workforce.
- Plan for taxes and benefits — delaying CPP and OAS can change your taxable income structure.
The idea of automatically retiring at 65 is becoming outdated. With longer lives, evolving jobs, and flexible government programs, retirement in Canada is now about choice — not a fixed age.
Whether you retire at 60, 68, or 70, today’s CPP and OAS rules let you design a plan that fits your health, finances, and dreams.
The key to a secure future is planning early, staying informed, and embracing the new possibilities of retirement.
FAQs
How much more do I get if I delay CPP and OAS to 70?
You can earn up to 42% more for CPP and 36% more for OAS by waiting until 70.
Can I still work while collecting CPP or OAS?
Yes, you can. In fact, continued work may increase your CPP benefits through post-retirement contributions.
Will working past 65 affect my taxes or OAS eligibility?
Yes. Higher income can trigger the OAS clawback, reducing payments for those earning above $90,000 annually.