Let’s just say it out loud: retirement at 65 isn’t the sacred milestone it used to be. For decades, it was baked into the Canadian psyche—65 meant gold watches, goodbye cake in the office lunchroom, and hello OAS and CPP. But that old blueprint? It’s fading. Slowly, then all at once.
Now, you’ve got folks in their 70s still grinding at part-time gigs, while others in their early 60s are trading suits for hiking boots and van life. Retirement’s gotten weird—in a good way.
Why 65 Isn’t the Golden Age Anymore
First off, people are living way longer. A Canadian born today? They’re expected to live well into their 80s, and that’s just the average. Many of us will easily blow past that. So if you retire at 65, you’re potentially signing up for a 25- to 30-year stretch of no formal income. That’s not retirement—that’s a second lifetime.
And while longevity is a gift, it’s also a challenge. Because guess what’s not aging gracefully? Public pensions and personal savings.
Here’s a hard truth: a fixed income that worked for a 10-year retirement in 1975 probably won’t cut it for three decades of rising healthcare costs, real estate inflation, and basic expenses that feel like they’re climbing a staircase with no handrail.
The Math of Claiming CPP and OAS—Early or Late?
Let’s play with some numbers, shall we?
| Age You Start CPP | Adjustment | Monthly Benefit |
|---|---|---|
| 60 | -36% (0.6% per month early) | Much smaller, more years |
| 65 | Base amount | Standard benefit |
| 70 | +42% (0.7% per month delayed) | Fewer years, higher monthly $$ |
Same deal for OAS. Wait till 70, and your monthly payout could be juiced by up to 36%. But here’s the rub: it’s not just about maximizing the monthly cheque—it’s about how long you’ll live, how healthy you’ll be, and whether you’ll even need that extra cash.
Some folks want the security of taking it early. Others want the bigger check down the road. There’s no shame in either.
Retirement Costs More Than It Used To
Everything’s more expensive now—whether it’s filling up your car or just buying blueberries. Add to that out-of-pocket healthcare needs as you age, and you’ve got the makings of a very tight budget if you retire too soon or without a solid cushion.
And let’s not ignore housing. Even if you’re mortgage-free, property taxes, insurance, repairs, and utilities don’t go on vacation just because you’ve stopped working.
Canadians Are Working Longer—And That’s Not All Bad
You might think it’s all doom and gloom, but there’s a silver lining: choice.
More and more Canadians are choosing to work past 65—not just for the money, but for the meaning. According to Statistics Canada, about 1 in 5 people aged 65+ are still working. That number has doubled since 2000.
Some love the structure. Others just want to stay social. And hey, a few like the extra travel budget.
So What’s the “New” Retirement Strategy?
Honestly? It’s personal.
Maybe you do retire at 65, but only from your day job. Maybe you spend your 60s consulting, part-timing, or finally starting that dog-walking business you always joked about. Or maybe you’re ready to clock out at 60 and just live modestly.
Point is, the idea of a “full-stop retirement” is being replaced by something more nuanced—a transition rather than an exit.
Here’s a quick checklist to gut-check your retirement readiness (regardless of age):
- Savings cushion that covers at least 25–30 years
- Decent healthcare coverage
- Clear plan for CPP and OAS timing
- A budget that factors in inflation and rising costs
- A purpose beyond work—whether that’s family, hobbies, or travel
What’s Next for Canada’s Retirement Age?
Remember when Canada floated the idea of raising the OAS age to 67 back in 2016? Yeah, that got scrapped—but don’t be surprised if it creeps back into political debates. With fewer workers supporting more retirees, the pressure’s on.
Other countries like the U.S., U.K., and Australia have already nudged up their retirement ages. Canada might not be far behind if the math keeps trending this way.
Wrap-Up: Rethink 65, But Don’t Fear It
If you’re gunning for retirement at 65, good for you—but just know it’s not some magic line in the sand. It’s a checkpoint, not a deadline.
What matters is whether you’re financially ready and emotionally prepared to stop working—or shift how you work. Retirement in 2025 isn’t about leaving the workforce. It’s about designing a life that still works for you.
FAQs
Can I still retire at 65 in Canada?
Yep. But whether you should depends on your savings, lifestyle, and health.
Is Canada raising the retirement age soon?
Not officially. But don’t rule it out—economic forces might push it back on the agenda.
Should I delay CPP or OAS?
Delaying gets you more per month. But fewer years to collect. Do the math based on your situation.
Will OAS be clawed back if I earn too much?
Yes. If your income is over the threshold (~$90k+), you could see reductions.
What’s the “right” retirement age?
There isn’t one. It’s whatever age you can comfortably afford and enjoy the ride.
