For generations, Canadians treated 65 as the finish line — the moment when work ended and pensions began. But that milestone is about to shift. Starting October 2025, the full eligibility age for CPP and OAS will increase to 67, marking one of the most significant social policy changes in modern Canadian history.
“This is about sustainability,” said a federal finance spokesperson. “Canadians are living longer and healthier lives — the retirement system must adapt.”
With life expectancy now 82 years, the average retiree could spend two decades or more drawing benefits. Extending the retirement age, officials argue, keeps the system fair and solvent.
Goodbye to Retirement at 65: Overview
| Policy Area | Details |
|---|---|
| Country | Canada |
| Programs Affected | Old Age Security (OAS), Canada Pension Plan (CPP) |
| Old Retirement Age | 65 years |
| New Full Retirement Age | 67 years (effective Oct 2025) |
| Early Retirement Option | 60 years (reduced benefits) |
| Max Delay Bonus | Up to 42% more at age 70 |
| Indexed To | Quarterly inflation adjustment |
| Official Source | www.canada.ca |
Why Ottawa Is Raising the Retirement Age?
Canada’s demographic math tells the story:
- Nearly 1 in 4 Canadians will be 65 or older by 2030.
- The worker-to-retiree ratio has dropped from 5:1 in 1980 to around 3:1 today.
- By 2035, it could fall below 2:1 — fewer workers supporting more retirees.
Countries like the U.S., U.K., and Australia have already moved to age 67. Canada is now following suit, starting with new CPP and OAS applicants after October 2025.
The aim? To ensure the programs remain fully funded and to encourage older Canadians who want to keep working to stay in the labour force.
How the Change Affects CPP & OAS Payments?
| Program | Old Full Age | New Full Age (2025) | Notes |
|---|---|---|---|
| CPP (Canada Pension Plan) | 65 | 67 | Contribution-based; can start as early as 60 |
| OAS (Old Age Security) | 65 | 67 | Residency-based; minimum 10 years in Canada required |
OAS Payments (as of October 2025)
| Age Group | Monthly Amount (approx.) | Annual Total |
|---|---|---|
| 65–74 | $740.09 | $8,881 |
| 75+ | $814.10 | $9,769 |
Indexed quarterly to inflation. No clawback for current retirees.
CPP Payment Example: Early, Normal, or Late
| Age You Start CPP | % of Full Pension | Example Monthly Amount (Full = $1,433) |
|---|---|---|
| 60 | 64% | $915 |
| 65 | 100% | $1,433 |
| 70 | 142% | $2,030 |
Delaying CPP until age 70 increases lifetime benefits by up to 42%, while starting at 60 reduces them by 36%.
The Rationale: “Longer Lives, Longer Work”
Ottawa’s position is clear: as Canadians live longer, the pension system must evolve.
Delaying benefits does three things:
- Reduces financial strain on public budgets.
- Rewards delayed retirement with higher monthly payments.
- Keeps experienced workers active in the economy.
“This isn’t about cutting pensions,” said economist Linda O’Leary of the Canadian Retirement Institute. “It’s about aligning retirement age with modern lifespans. Canadians in their 60s today are not the same as those in the 1980s.”
How to Apply for CPP and OAS?
| Step | Action |
|---|---|
| Step 1 | Visit My Service Canada Account (MSCA) |
| Step 2 | Fill out the CPP and OAS application forms |
| Step 3 | Upload ID, SIN, proof of residence, and direct deposit details |
| Step 4 | Submit online or by mail |
| Step 5 | Track progress in MSCA or call 1-800-277-9914 |
Retirement Age and Life Expectancy: The New Reality
| Decade of Birth | Full CPP/OAS Age | Life Expectancy (Canada) |
|---|---|---|
| 1940s | 65 | 76 years |
| 1960s | 66 | 81 years |
| 1980s | 67 | 83 years |
| 2000s | 68+ (projected) | 86 years |
The policy trend is unmistakable — every generation retires slightly later but lives longer, meaning the payout period stays roughly constant.
Example: How Waiting Adds Up
Let’s take two Canadians with identical work histories:
| Scenario | Retirement Age | Monthly CPP | 10-Year Total |
|---|---|---|---|
| Early Retiree | 60 | $915 | $109,800 |
| On-Time Retiree | 65 | $1,433 | $171,960 |
| Delayed Retiree | 70 | $2,030 | $243,600 |
Waiting five extra years adds over $70,000 in lifetime benefits — a powerful incentive to delay if financially feasible.
What Experts and Seniors Are Saying?
“This will be a shock for workers under 50 who thought 65 was guaranteed,” said James Wilcox, senior policy analyst at the Fraser Institute.
“But the change is pragmatic — it protects the next generation of retirees.”
“People aren’t retiring the way they used to,” added Marilyn Côté, a 68-year-old consultant from Ottawa. “I still love what I do, and with this change, I get rewarded for staying longer.”
Who’s Not Affected?
- Current retirees — payments stay the same.
- Anyone already receiving CPP/OAS before Oct 2025 — no changes.
- Those aged 64+ by October 2025 — still eligible under old rules.
Only new applicants after October 2025 will fall under the age-67 framework.
Fact Check Summary
| Claim | True / False | Explanation |
|---|---|---|
| CPP and OAS age rising to 67 | True | New law effective Oct 2025 |
| Current retirees will lose benefits | False | Fully protected |
| You can still take CPP at 60 | True | With 36% permanent reduction |
| OAS depends on contributions | False | Residency-based |
| Delaying to 70 increases payout | True | +42% total increase |
FAQs
What is the new full retirement age?
Starting October 2025, the full age for CPP and OAS moves from 65 to 67 for new applicants.
Can I still take CPP early at 60?
Yes, but expect a 0.6% reduction per month — about 36% less overall.
Does this affect people already receiving benefits?
No. If you’re already collecting CPP or OAS, your payments and schedule remain unchanged.
Will waiting until 70 really pay more?
Yes. Each month after 65 adds 0.7% extra, up to 42% higher at age 70.
Why is the government making this change?
To ensure sustainability as Canadians live longer, drawing benefits for 20+ years on average.
