The traditional retirement age of 65 in Canada is undergoing a major change. The federal government has confirmed that the eligibility age for Old Age Security (OAS) will gradually increase to 67 by January 2029. This shift, combined with enhancements to the Canada Pension Plan (CPP), will significantly impact how Canadians plan for their retirement years.
Canada Retirement Age Change 2025–2029
Starting in 2023, the OAS eligibility age began transitioning from 65 to 67, with full implementation set for 2029. This change affects Canadians born after February 1962. While OAS is being delayed, the CPP retirement age remains at 65, though Canadians can choose to begin CPP at 60 with reduced payments or delay until 70 for higher benefits. These adjustments are designed to ensure pension sustainability as Canadians live longer, with average life expectancy now in the mid-80s.
Canada Retirement Age Change 2025–2029 Implications for Seniors
The increase to 67 means seniors will wait longer for OAS and the Guaranteed Income Supplement (GIS). Many may need to remain in the workforce longer or rely more on personal savings. However, CPP enhancements effective in 2025 increase the replacement rate from 25% to 33.33% for contributors, providing stronger support. Additionally, delaying OAS or CPP until age 70 can boost payments by up to 36% and 42%, respectively.
Canada Retirement Age Change 2025–2029 Payment Details
In 2025, OAS provides up to $800.44 per month for seniors aged 75 and older, while CPP pays up to $1,433 monthly at age 65. Payments are issued monthly, usually on the second-to-last business day — for example, September 24, 2025.
Canada Retirement Age Change 2025–2029 Tips for Seniors
- Review CPP contributions through your My Service Canada Account.
- Save additional funds in TFSAs or RRSPs.
- Seek financial advice to optimize retirement planning.
- Call 1-800-277-9914 for official OAS and CPP assistance.
Canada Retirement Age Change 2025–2029 Final Thoughts
The move to a retirement age of 67 by 2029 highlights the importance of financial preparation. Seniors should explore deferral options, review eligibility, and adapt their plans to secure a stable retirement.
Canada Retirement Age Change FAQs
1. When will the OAS age change to 67?
The transition started in 2023 and will be complete by January 2029.
2. Can I still retire at 65?
Yes, but OAS begins at 67. CPP can start at 60 with reduced benefits or be deferred to 70 for higher payments.
3. How do I maximize my retirement benefits?
Delay OAS and CPP until 70, track contributions via My Service Canada Account, and diversify savings.
