Canada’s Retirement Age Under Review, Is Canada About to Push Retirement Beyond 65?

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Canada’s Retirement Age Under Review : The retirement age in Canada has been a point of discussion for years, but in 2025 the debate is heating up again. With people living longer, healthier lives, and with pension programs facing financial pressure, many wonder if Canada will soon raise the official retirement age beyond 65. Here’s a full look at the issue and what it means for Canadian workers and seniors.

Table of Contents

Current Retirement Age in Canada

Right now, most Canadians can begin receiving the Old Age Security (OAS) pension at age 65. The Canada Pension Plan (CPP) can be taken as early as 60 or delayed until age 70, with monthly amounts adjusted accordingly.

For decades, 65 has been the standard retirement age, but with shifting demographics, that standard may no longer be sustainable.

Why the Retirement Age May Change

Several factors are driving the conversation about raising the retirement age:

Longer Life Expectancy: Canadians are living well into their 80s, meaning pensions need to stretch further.
Rising Costs: Healthcare, inflation, and housing costs are placing more pressure on government budgets.
Workforce Challenges: With fewer younger workers entering the labor force, extending the retirement age could help balance the system.

These realities are making policymakers reconsider whether 65 is still the right threshold.

Global Trends in Retirement Age

Canada is not alone in this debate. Other developed countries have already taken action:

The United States is gradually increasing its retirement age to 67.
The United Kingdom has set 66 as the current retirement age, with plans to rise further.
Several European nations are pushing the age to 67 or even 68.

As Canada watches these shifts, it’s possible similar changes will follow here.

What Raising the Retirement Age Would Mean for Canadians

If Canada were to raise the retirement age beyond 65, the impact could be significant:

Longer Working Years: Canadians may need to stay in the workforce longer before accessing full benefits.
Financial Planning Pressure: Retirees may have to adjust savings strategies if government pensions start later.
Health Considerations: Not all Canadians are physically able to work into their late 60s, raising questions about fairness.
Employer Adaptation: Businesses may need to adjust workplace policies for an aging workforce.

Is Change Coming Soon?

While there is no official announcement yet, discussions about retirement reform are ongoing. Many experts believe Canada may gradually raise the retirement age in the next decade, likely following international examples. However, any change would probably include transitional rules to protect those nearing retirement.

Preparing for the Future

Whether or not the retirement age changes soon, Canadians can take steps to prepare:

Maximize CPP and OAS benefits by understanding contribution rules.
Save early through RRSPs, TFSAs, and private pensions.
Stay informed about government policy changes.
Plan flexible retirement options, including part-time work.

Canada’s Retirement Age Under Review Final Thoughts

Canada’s retirement system is under pressure, and the age of 65 may not remain the standard forever. While no decision has been finalized, the possibility of pushing retirement beyond 65 is real. Canadians who stay proactive, informed, and financially prepared will be in the best position to adapt to future changes.