For years, retiring at 65 was embedded in Canada’s social contract: workers anticipated that milestone as the gateway to pension income and a slower pace of life.
But times are changing. With evolving demographics, shifting labor trends, and pension reforms, that benchmark is losing its relevance.
Beginning October 2025, the age for receiving full Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will rise to 67 — marking a landmark change in Canada’s pension landscape.
Why 65 Is Losing Its Grip
Longevity & Activity in Later Years
Canadians today are not merely living longer — they’re staying engaged. Many in their late 60s continue working part-time, consulting, or launching small ventures. Policymakers are responding by shifting from a rigid retirement age to a more flexible and sustainable model.
Bigger Checks for Delayed Retirement
If you delay claiming CPP until 70, your monthly payment could be up to 42 % higher than what you’d get at 65. In contrast, starting early at 60 yields a reduction of nearly 36 % each month. This tiered system rewards postponement and helps stabilize Canada’s pension system over the long run.
The Reality of Extended Lifespans
Average life expectancy in Canada now nears 82 years, meaning many retirees will require income for two decades or more after leaving the workforce. Extending the reward window by shifting the full-benefit age helps balance out payouts over time.
The Shift to 67: What’s Behind It?
Demographics & Sustainability
Canada’s senior population is swelling — by 2030, one in four Canadians could be aged 65 or older. The government sees this reform as a necessary move to “future-proof” the pension systems.
International Precedents
Countries like the U.S. and the U.K. are already nudging retirement ages closer to 67. By aligning with global trends, Canada attempts to preserve pension viability.
Who Is Affected
This change only impacts future pensioners. Anyone currently receiving CPP or OAS — or nearing retirement under the existing rules — will not see cuts or clawbacks to their benefits.
Understanding CPP & OAS Mechanics
Canada Pension Plan (CPP)
- Contribution-based: The more you contribute during your working life, the larger your benefit.
- Claiming window: You may begin between ages 60 and 70.
- Benchmark age: 65 — historically the “full” benefits age; maximum average around $1,433/month (for those with full contributions).
Old Age Security (OAS)
- Residency-based: Eligibility depends on how long you’ve lived in Canada, not how much you contributed.
- Minimum requirements: You must live in Canada at least 10 years after turning 18, with 40 years required for full benefits.
- Projected rates (Oct 2025): Age GroupMonthly OAS Amount65–74$740.0975+$814.10 These payments are indexed quarterly to inflation to protect seniors from rising costs.
How to Apply for CPP & OAS
Applications today are streamlined through My Service Canada Account (MSCA) on canada.ca. You’ll need:
- Photo identification (passport, driver’s licence)
- Social Insurance Number (SIN)
- Proof of your address
- Banking details (for direct deposit)
- Proof of age (birth certificate or equivalent)
You can check application status in your MSCA, or by phoning 1-800-277-9914 for updates.
What You’ll Receive, Depending on When You Apply
| Age at Claim | % of Full CPP | Approximate Monthly Benefit* |
|---|---|---|
| 60 | 64 % | $915 |
| 65 (standard) | 100 % | $1,433 |
| 70 | 142 % | $2,030 |
* Based on full contribution history.
This flexible structure encourages deferring benefits to maximize lifetime income.
Monitoring Your Application & Benefits
- Log into My Service Canada Account
- Go to My Applications → CPP/OAS Status
- Review any updates or requests from Service Canada
- Keep your contact details up-to-date for timely alerts
Canada’s long-standing retirement age of 65 is gradually giving way to a new era. With the rise to 67 starting October 2025, the government is adapting to longer life expectancy, evolving work patterns, and fiscal sustainability pressures.
For those planning retirement, this underscores the value of flexibility: delaying benefits can lead to significantly higher lifetime income, while early withdrawals come at steep costs. By modernizing the system, Canada hopes to balance fairness and feasibility for generations to come.
FAQs
Will current retirees be penalized by the new CPP/OAS rules?
No. The change applies only to future claimants. Those already receiving CPP or OAS won’t lose any benefits or face retroactive reductions.
If I claim CPP at age 70, by how much will my monthly benefit increase?
By delaying to 70, you could receive up to 142 % of your full pension — roughly 42 % more than you’d get at 65.
How frequently are OAS payments adjusted?
OAS benefits are indexed quarterly to inflation, protecting recipients from rising living costs.