Table of Contents
- What Is Changing About Retirement Age in Canada?
- Why Is Canada Ending Retirement at 65?
- What Is the New Flexible Retirement Age Rule?
- How Does This Change Affect OAS and CPP?
- What Are the Benefits of the New System?
- Who Is Affected and When?
- How to Plan Your Retirement Under the New Rules
- FAQs About Canada’s New Retirement Age
- Where to Find Official Information
What Is Changing About Retirement Age in Canada?
Starting from 10 November 2025, Canada officially ends the fixed retirement age of 65. Instead, a new flexible retirement age rule allows Canadians to decide when to begin receiving their Old Age Security (OAS) and Canada Pension Plan (CPP) benefits anytime between ages 60 and 70Why Is Canada Ending Retirement at 65?
The change reflects demographic realities like increased life expectancy and the financial sustainability challenges of fixed pension ages. Allowing flexibility supports longer workforce participation, personal choice, and improved financial planning for an aging population.
What Is the New Flexible Retirement Age Rule?
Under the new rule, individuals can:
- Start receiving CPP and OAS as early as age 60 (with penalties).
- Delay benefits until age 70 to receive increased monthly payments.
- Choose any age in between based on personal financial needs and retirement goals.
For example, claiming OAS at age 70 can increase payments by up to 36%, and CPP payments can increase by as much as 42%, incentivizing delayed retirement.
How Does This Change Affect OAS and CPP?
The OAS eligibility age remains 65 for regular claiming, but with flexible options added. CPP has long allowed flexibility from 60 to 70, and the 2025 update further aligns both programs with a flexible retirement approach.
What Are the Benefits of the New System?
- Greater control over retirement timing.
- Potential for increased monthly payments by delaying claims.
- Ability to tailor retirement income to lifestyle and financial needs.
- Encouragement for longer workforce participation and economic contributions.
Who Is Affected and When?
- Canadians turning 60 or older after 10 November 2025 fall under the new flexible rule.
- Existing retirees or near-retirees retain their current benefits and rules unless they choose to adjust.
- Younger workers will fully experience flexible start ages as this new norm.
How to Plan Your Retirement Under the New Rules
- Evaluate your health, income needs, and work plans.
- Use official government calculators and consult financial advisors.
- Consider delaying benefits for a higher lifetime income if feasible.
- Stay informed about ongoing government updates.
FAQs About Canada’s New Retirement Age
Q1: When can I start receiving my CPP and OAS under the new rules?
A1: Anytime between 60 and 70 years old, with early claims reducing payments and delays increasing them.
Q2: Does ending retirement at 65 mean mandatory working beyond 65?
A2: No, it provides flexibility, not a requirement to work past 65.
Q3: Will pension amounts change if I claim early or late?
A3: Yes, early claiming results in reduced payments, while late claiming increases benefits.
Q4: Are there tax implications with the new flexible pension age?
A4: Pension income is taxable as usual; consult a tax advisor for personalized details.
Q5: How do I find out my exact retirement benefits under these changes?
A5: Use the Canada Revenue Agency’s online pension calculators or speak with Service Canada representatives.
Where to Find Official Information
To learn more and stay updated on retirement planning in Canada, visit:
This landmark move to flexible retirement age allows Canadians increased freedom and opportunity to optimize their retirement lifestyle and finances starting 10 November 2025.