The idea of retiring at 65 — once a cornerstone of Canada’s social contract — is fading. For generations, Canadians structured their careers and savings around that milestone: working until 65, then tapping into the Canada Pension Plan (CPP) and Old Age Security (OAS).
But with longer lifespans, evolving labor patterns, and pension reforms, the formula is changing. Beginning in October 2025, the age to receive full CPP and OAS benefits will increase to 67, signaling one of the most consequential pension reforms in Canadian history.
Farewell to Age 65 Retirement
Canadians are living not only longer, but more dynamically. Many in their late sixties continue working, consulting, or launching ventures. Rather than enforcing a fixed retirement age, Ottawa’s new framework embraces flexibility and financial sustainability.
Here’s the balance: retire later, get higher monthly payouts. Delaying CPP until age 70 could yield benefits up to 42 % higher than withdrawing at 65. Conversely, electing to retire at 60 can cut your monthly benefit by approximately 36 %.
This structure rewards patience and supports the viability of the pension system. With life expectancies nearing 82 years (per Statistics Canada), retirees might depend on income for 20+ years beyond retirement.
Why Move to Age 67?
The decision isn’t random. Canada’s population is aging rapidly — by 2030, nearly 1 in 4 Canadians will be 65 or older. The federal government, observing global trends (e.g. in the U.S. and U.K., both edging toward age 67), says the adjustment is designed to “future-proof” the pension framework.
Importantly, this change affects future pensioners only. Current recipients and those already taking benefits will remain under the existing structure — no cuts and no clawbacks.
From a policy perspective, the shift is meant to encourage Canadians to stay active in the workforce longer, sustaining economic activity and preserving tax revenues.
Understanding CPP and OAS
Canada Pension Plan (CPP)
CPP is contribution-based — your pension correlates with what you’ve paid over your working years. You can begin at 60, defer until 70, or take it at 65. The average maximum benefit for full contributors is currently around $1,433/month.
Old Age Security (OAS)
Unlike CPP, OAS eligibility hinges on residency, not contributions. You must have lived in Canada at least 10 years after age 18 to receive some benefits, and a full pension requires about 40 years of residence.
Starting in October 2025, OAS base payments are projected to be:
| Age Group | OAS Monthly Amount (Oct 2025) |
|---|---|
| 65–74 | $740.09 |
| 75+ | $814.10 |
These amounts are indexed quarterly to inflation, helping seniors keep pace with rising costs.
How to Apply for CPP & OAS
The application process is now largely digital, via the My Service Canada Account (MSCA) platform on canada.ca.
You’ll need:
- Valid government-issued photo ID (e.g. passport, driver’s licence)
- Social Insurance Number (SIN)
- Proof of address
- Banking details for direct deposit
- Proof of age (e.g. birth certificate)
Once submitted, you can monitor your application via MSCA or call 1-800-277-9914 for updates.
How Timing Affects Payouts
| Age You Start CPP | % of Full Pension | Example Monthly Amount* |
|---|---|---|
| 60 | ~ 64 % | ~$915 |
| 65 | 100 % | ~$1,433 |
| 70 | ~ 142 % | ~$2,030 |
* Based on a full benefit amount of $1,433. Delaying your start date increases payments; starting earlier reduces them.
Tracking Your Application & Benefits
- Log into My Service Canada Account
- Navigate to My Applications → CPP/OAS Status
- Review any updates or requests from Service Canada
- Keep your contact information current to receive prompt notifications
Canada’s era of retiring at 65 is giving way to a new reality. With the government raising the full CPP and OAS age to 67 beginning in October 2025, future retirees will need to plan differently.
The reform rewards those who delay benefits and aids the financial longevity of the pension system. Although the change applies only to future beneficiaries, the shift emphasizes longer working life, stronger fiscal foundations, and a more resilient social safety net.
FAQs
Will this change affect people already receiving CPP or OAS?
No — the reform applies only to future beneficiaries. Individuals already drawing CPP or OAS will remain under the current rules with no reduction.
Can I still begin CPP before age 65?
Yes — you can claim CPP as early as 60, although your benefit will be reduced (around 64 % of full).
How will the increase to 67 strengthen the pension system?
By encouraging later retirement, the change helps balance longer lifespans with sustainable payouts and ensures ongoing support for Canada’s aging demographic and public finances.