Recent posts have claimed that Canada will introduce a fixed national retirement age of 65 starting on November 17, 2025. That headline can be misleading. In Canada there is no single law that forces everyone to retire at the same age. Retirement is a mix of your personal decision, your employer policy where applicable, and the ages attached to public pensions such as the Canada Pension Plan and Old Age Security. For most people, 65 is an important milestone because OAS begins at 65 and many employers design benefits around that age, but it is not a new universal legal cut off.
This article explains what retirement age means in Canada, how CPP and OAS actually work, what changes on or after age 65, and how to adjust your financial plan for 2025 and beyond.
What Retirement Age Means in Canada
Think of retirement age as three overlapping concepts rather than a single rule.
- Public benefits age
- Old Age Security begins at 65 for those who meet residency conditions. You can defer OAS up to age 70 and receive a larger monthly amount.
- Canada Pension Plan retirement pension can start as early as 60 or as late as 70. The amount is adjusted based on your start age and lifetime contributions.
- Workplace policy
Most employers cannot impose mandatory retirement at a specific age, apart from limited exceptions that relate to genuine job requirements. Many people still choose to leave the workforce around 65 because health coverage, employer pensions, and personal goals often line up with that date. - Your personal timing
Your savings, health, caregiving needs, and lifestyle targets determine when you stop full time work, shift to part time, or continue longer.
Quick Summary
Item |
Details |
|---|---|
Official retirement age in Canada |
There is no single legal retirement age for all workers |
Standard benefit ages |
CPP can start 60 to 70, OAS at 65 with an option to defer |
Can you retire at 65 |
Yes, many do, but it is a personal and financial decision rather than a new legal rule |
Workplace rules |
Most mandatory retirement policies are prohibited except narrow exceptions such as bona fide occupational requirements |
What to do now |
Plan using CPP and OAS ages, run early and late claiming scenarios, confirm your employer policy, update My Service Canada Account |
Official site |
Government of Canada benefits portal: https://www.canada.ca |
CPP and OAS: How Age Choices Change Your Payment
Understanding the levers you control is more valuable than any headline about a fixed retirement date.
- CPP at 65 is the reference point.
- Start before 65 and your payment is reduced for each month taken early, from age 60 up to 64 years and 11 months.
- Start after 65 and your payment is increased for each month you delay, up to age 70.
- Delaying is not right for everyone. Consider health, break even ages, survivor needs, and whether you are still earning CPP credits.
- OAS at 65 is the standard start.
- You can defer up to age 70 for a larger monthly amount.
- OAS is subject to the clawback if your net income exceeds the annual threshold, so coordinate drawdowns and income splitting.
- Guaranteed Income Supplement is available to low income OAS recipients starting at 65. Deferral of OAS also defers GIS.
The key message is that benefits are flexible. There is no brand new national rule that makes 65 compulsory or exclusive from November 17, 2025.
Planning If You Aim To Stop Working Around 65
Even without a new law, 65 remains an important anchor in many plans. Use these steps to make your transition smooth.
- Run three timing cases
- Case A: CPP at 60 with OAS at 65.
- Case B: CPP and OAS at 65.
- Case C: CPP and OAS at 67 to 70.
Compare lifetime totals, survivor impacts, taxes, and cash flow.
- Coordinate workplace benefits
Confirm how your health, dental, and life insurance change at 65. Some plans end, others convert, and some require action 60 to 90 days before your birthday. - Sequence your drawdowns
Decide the order for using non registered savings, TFSAs, RRSP to RRIF conversions, and employer pensions. Good sequencing can lower taxes and reduce OAS clawback risk. - Build a two year cash buffer
Keep readily available savings for unexpected costs such as home repairs or medical expenses. This buffer gives you flexibility to delay CPP or OAS if that improves long term outcomes. - Update accounts and paperwork
- My Service Canada Account for CPP and OAS.
- Banking details for direct deposit.
- Powers of attorney and beneficiaries on registered plans.
Workplace Transitions And Flexible Exit Options
Many employers now support phased retirement. Examples include reduced hours, seasonal schedules, or consulting arrangements that allow you to ease into retirement without losing purpose or income stability. If your role is physically demanding, discuss accommodation or redeployment early so you are not forced into a rushed decision. Document the arrangement in writing and understand how it affects your pensionable service and group benefits.
Common Misconceptions
- Myth: Everyone must retire at 65 after November 2025.
Reality: There is no universal mandatory retirement age. Benefit ages exist, not a single legal stop date for all workers. - Myth: You lose CPP if you work past 65.
Reality: You can keep working and either collect CPP or delay it. If you collect between 65 and 70, you may contribute through the Post Retirement Benefit if you are still employed. - Myth: Starting earlier always pays more over a lifetime.
Reality: Early start increases years of payment but reduces the monthly amount. Health, longevity expectations, and survivors matter.
How To Apply And Track Benefits
- Old Age Security and GIS: Check if you were auto enrolled. If not, apply through My Service Canada Account and set up direct deposit.
- Canada Pension Plan: Apply online and pick your month to start. You can change your mind before the first payment if your situation changes.
- Employer pensions: Request your retirement package at least three to six months in advance so forms and options are finalized before your last day.
Summary Table
Aspect |
Details |
|---|---|
What changes on Nov 17, 2025 |
No new universal legal retirement age. You can still retire at 65, earlier, or later depending on benefits and employer policy |
CPP age window |
Start 60 to 70, adjusted up or down from the 65 reference age |
OAS start |
Age 65, with an option to defer up to 70 for a higher amount |
Workplace effect |
Most jobs have no mandatory retirement. Confirm your employer rules and any exceptions |
Planning action |
Model early and late scenarios, review tax and clawback effects, set up My Service Canada Account |
Official site |
Government of Canada: https://www.canada.ca |
Frequently Asked Questions
1) Is there a new national rule that sets retirement at exactly 65 from November 17, 2025
No. Canada does not have a single legal retirement age for all workers. Age 65 remains a common milestone because OAS begins at 65 and many plans use 65 as a reference point.
2) Can I be required by my employer to leave at 65
In most sectors mandatory retirement is not allowed. Some narrow exceptions exist where age is a bona fide occupational requirement. Review your contract and talk to human resources.
3) Should I start CPP at 60, 65, or 70
It depends on health, income needs, survivor goals, and taxes. Starting early gives more months at a lower rate. Delaying increases the monthly amount. Run break even comparisons before you decide.
4) Can I defer OAS and why would I
Yes, you can defer up to age 70 to receive a higher monthly payment. Deferral can help if you expect higher longevity or if you want to reduce clawback in years when income is temporarily elevated.
5) What is the best single step to take in 2025
Open or update My Service Canada Account, verify your CPP and OAS estimates, confirm direct deposit, and create a written plan that shows cash flow under early, standard, and delayed start ages.
Final Thoughts
There is no new nationwide law that forces retirement at 65 on November 17, 2025. What matters is how you combine the flexible start ages for CPP and OAS with your employer rules and your personal goals. By running multiple timing scenarios, coordinating taxes and benefits, and preparing paperwork early, you can choose the retirement date that suits your health, household needs, and lifetime income targets.
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