The question of Canada’s retirement age is once again at the centre of policy discussions as the federal government considers ways to ensure the sustainability of retirement programs like the Canada Pension Plan (CPP) and Old Age Security (OAS). With an aging population and increased life expectancy, many Canadians are asking: Will the retirement age rise, and how will it affect CPP and OAS benefits for future retirees?
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Current Retirement Age in Canada
As of 2025, the official retirement programs in Canada operate as follows, according to canada.ca:
- Canada Pension Plan (CPP):
- You can start collecting CPP as early as age 60, but your benefits will be reduced by up to 36% if you take them before 65.
- The standard age to receive an unreduced CPP pension is 65.
- You can delay CPP up to age 70, with benefits increasing by up to 42%.
- Old Age Security (OAS):
- You can apply for OAS at age 65 if you meet residency requirements.
- Like CPP, you can defer OAS up to age 70, increasing your monthly payment by 36%.
Currently, there are no penalties or reductions if you wait until the standard retirement age of 65 to start OAS.
Could Canada Raise the Retirement Age?
The idea of raising the retirement age has been debated for years. In 2012, the federal government announced an increase in the OAS eligibility age from 65 to 67, but this decision was reversed in 2016.
Now, with the baby boomer generation retiring and longer life expectancy driving up costs, some economists argue that raising the age again may be necessary to keep the system sustainable.
Potential changes under discussion include:
- Increasing OAS eligibility to 67.
- Adjusting CPP collection rules to align with higher retirement ages.
- Gradual phase-in of changes to avoid disrupting current retirees.
How Would This Impact CPP and OAS Benefits?
If the retirement age were raised, here’s how future retirees could be affected:
- CPP: While you could still apply as early as 60, the reduction in payments could become greater if the standard retirement age is raised. For example, if the new age was set at 67, early retirement at 60 could mean steeper benefit cuts.
- OAS: If the eligibility age increases to 67, Canadians would need to wait longer to access this important benefit. Those who rely on OAS as a core part of their retirement income may need to adjust their financial planning.
Why the Debate Matters for Canadians
The CPP and OAS programs are cornerstones of retirement income in Canada, helping millions of seniors cover daily living expenses. Any change to the retirement age would directly affect:
- When you can start collecting benefits
- How much you receive over your lifetime
- Retirement planning strategies for middle-aged and younger Canadians
Rising costs of living, inflation, and increased life spans all factor into the debate.
What Should Canadians Do Now?
While no official decision has been made, experts recommend:
- Staying informed about policy updates on canada.ca.
- Planning for flexibility by saving more in RRSPs, TFSAs, and private pensions.
- Considering longevity—if you expect to live well into your 80s or 90s, delaying CPP and OAS may maximize lifetime benefits.
At this time, Canadians can still access CPP at 60 and OAS at 65, with deferral options up to 70. However, the government is reviewing long-term sustainability, and changes to the retirement age could be introduced in the future.
If adjustments happen, they will likely be phased in gradually to protect current retirees. For now, Canadians should continue monitoring canada.ca for official updates while building personal savings to ensure financial security in retirement.