Canada’s retirement system is undergoing a major shift, and many people are now saying that the country has effectively ended retirement at 67.
While the government has not officially changed the legal retirement age, the way OAS (Old Age Security) and CPP (Canada Pension Plan) work in 2025 means there is no longer one fixed “normal” age to retire.
Instead, Canada now pushes toward flexible retirement, with new incentives, higher payout bonuses, and stronger financial benefits for seniors who delay collecting their pensions.
These changes are shaping how millions of Canadians plan the next stage of their lives.
Retirement Age in Canada: What Actually Changed?
Many Canadians grew up believing that 65 or 67 were the “real” retirement ages. But in 2025:
- There is no fixed retirement age in Canada.
- CPP can start anytime from age 60 to 70.
- OAS starts at 65, but it can be delayed to 70 for a larger payment.
The idea that Canada “ended retirement at 67” comes from the fact that more people are financially encouraged to delay pension payments to 67–70, where benefits are significantly higher.
This system creates a flexible retirement window, instead of one official age.
CPP Age Rules in 2025
The Canada Pension Plan now includes stronger penalties for taking benefits early and bigger bonuses for delaying.
CPP Reductions & Increases
- Start at 60: Up to 36% less than starting at 65.
- Start at 65 (standard): Full eligible amount.
- Start at 70: Up to 42% more than starting at 65.
Maximum CPP in 2025
- Maximum CPP at 65: Around $1,433 per month for new beneficiaries.
- Starting at 70 can boost this to more than $2,000 per month, depending on contribution history.
This structure clearly motivates Canadians to delay taking CPP if they want higher lifetime income.
OAS Age Rules in 2025
Old Age Security has also shifted towards rewarding later retirement.
OAS Details
- Start at 65: Standard eligibility age.
- Start at 70: Up to 36% higher monthly payment.
- OAS cannot be taken before 65.
Maximum OAS in 2025
- Ages 65–74: About $740 per month.
- Ages 75+: About $814 per month due to the permanent age-increase boost.
The ability to defer OAS until 70 creates significant financial benefits, especially for seniors who continue to work or do not immediately need their pension income.
Why People Say “Retirement at 67 Is Ending”
This phrase does not mean the government banned retiring at 67. Instead, it reflects how retirement planning has changed:
1. No Single Age Works for Everyone
Some retire at 60, others at 65, and growing numbers at 68, 69, or 70 depending on income and health.
2. Higher Benefits Push Retirement Later
The permanent bonus for delaying CPP and OAS makes later retirement more financially attractive than ever.
3. Canadians Are Living Longer
With longer life expectancy, pensions must stretch for more years, which naturally encourages later claiming.
OAS & CPP Retirement Age Rules
CPP Pension
- Start Age: 60–70
- Early Penalty: 36% less if taken at 60
- Late Bonus: 42% more if taken at 70
- Maximum Monthly (2025): $1,433 at age 65
OAS Pension (Ages 65–74)
- Start Age: 65–70
- Early Penalty: Cannot start early
- Late Bonus: 36% more at 70
- Maximum Monthly (2025): $740
OAS Pension (Ages 75+)
- Start Age: 65–70
- Early Penalty: None
- Late Bonus: Same increase rules
- Maximum Monthly (2025): $814
Canada’s retirement system in 2025 is built on flexibility, not fixed ages. While OAS still begins at 65 and CPP offers choices between 60 and 70, the financial incentives to delay pensions make retirement at 67–70 more appealing and more rewarding.
In reality, Canada has not “ended retirement at 67”—instead, it has ended the idea that retirement must happen at any one specific age.
The modern system gives Canadians full control over when they retire, based on their personal health, savings, and long-term financial goals.
FAQs
Did Canada officially raise the retirement age?
No. The government did not change the legal retirement age. CPP still allows retirement at 60–70, and OAS starts at 65.
Is it better to take CPP at 60, 65, or 70?
Taking CPP at 60 reduces your payment permanently. Starting at 65 gives the full amount, while delaying to 70 provides the highest lifetime monthly benefit.
Can I still retire at 60 or 65 if I want to?
Yes. Many Canadians retire at 60 or 65. The difference is the amount you receive, which will be lower at 60 and higher if delayed to 67–70.