For decades, Canadians planned their retirement around a familiar milestone—age 65. This age marked the beginning of both the Old Age Security (OAS) and Canada Pension Plan (CPP) payments, offering predictable financial support after leaving the workforce.
However, Canada’s retirement reality has shifted dramatically.
With recent changes to OAS and CPP rules, 65 is no longer the standard retirement age. Canadians are not only living longer but remaining healthier and more active well into their late 60s and 70s. As a result, the government now encourages delaying OAS and CPP payments—allowing retirees to collect significantly higher monthly pension amounts.
The phrase “Goodbye to retiring at 65” reflects a growing national movement:
Retirement is becoming flexible, personalized, and increasingly delayed for greater financial security.
Why 65 Is No Longer the Magic Retirement Number
Advancements in medical care, longer life expectancies, active lifestyles, and rising living costs mean Canadians require more financial stability in retirement. Retiring at 65 often means stretching income over two or more decades—sometimes even longer.
By delaying OAS or CPP:
- Canadians can receive up to 42% more CPP
- And up to 36% more OAS
- Ensuring stronger long-term financial security
This shift encourages people to work longer if possible, save more, and enter retirement with better financial footing.
Retirement Age 2025: Quick Overview
| Category | Details |
|---|---|
| Managing Body | Government of Canada |
| Departments | Service Canada / CRA |
| Programs | Old Age Security (OAS), Canada Pension Plan (CPP) |
| Country | Canada |
| Pension Amounts (2025) | $727.67 to $1,433/month |
| Standard Start Age | 65 |
| Maximum Delay | Until age 70 |
| Benefit Type | Monthly taxable pension |
| Payment Method | Direct deposit |
| Official Website | https://www.canada.ca/ |
Understanding OAS and CPP
Old Age Security (OAS)
OAS is a government-funded monthly pension for seniors aged 65 and up. It is not tied to work history but rather to how long you’ve lived in Canada.
Canada Pension Plan (CPP)
CPP is a contributory pension plan based on your:
- Employment history
- Income
- Total contributions
- Age you choose to start benefits
You can take CPP as early as age 60 or delay it until age 70.
Eligibility Requirements for OAS and CPP
OAS Eligibility
To qualify for OAS:
- You must be 65 or older
- You must have lived in Canada for at least 10 years after age 18
- To receive the maximum OAS, you must have lived in Canada for 40 years
CPP Eligibility
You must:
- Have made contributions during your working years
- Apply anytime between 60 and 70 years old
- Understand that delaying boosts your monthly benefit significantly
Bonus for Delaying
- OAS: Up to 36% more if delayed to age 70
- CPP: Up to 42% more if delayed to age 70
Documents Required for OAS and CPP Applications
When applying, you must provide:
- Government-issued ID (Passport, Driver’s License)
- Social Insurance Number (SIN)
- Proof of Canadian residency
- Work history records (for CPP)
- Proof of residency abroad (if applicable)
- Accurate banking details for direct deposit
OAS & CPP Pension Amounts for 2025
Your final pension depends on:
- Age at which you start receiving payments
- Contribution years
- Lifetime earnings
- Residency duration
2025 Pension Breakdown
| Pension Type | Start Age | Increase for Delay | Maximum Monthly (2025) |
|---|---|---|---|
| CPP | 65 | +42% at age 70 | Up to $1,433 |
| OAS | 65 | +36% at age 70 | $727.67 (65–74), $800.44 (75+) |
These amounts rise annually due to inflation adjustments.
How to Apply for OAS and CPP in 2025
Steps:
- Log in to My Service Canada Account (MSCA)
- Choose “Apply for OAS” or “Apply for CPP”
- Complete your personal and financial details
- Select your preferred start date (immediate or delayed)
- Submit and wait for confirmation
How to Check Your OAS/CPP Application Status
Through your MSCA account, you can:
- Track application progress
- Review missing documents
- Confirm approval
- Verify payment dates
- Update personal information
If delays occur, contact Service Canada directly.
Latest 2025 Updates for OAS & CPP
- OAS increases by 10% for seniors aged 75+
- CPP enhancement phase continues, meaning future retirees will receive more
- Flexible retirement ages encourage delaying pensions up to age 70 for maximum payouts
These updates make retirement planning more customizable and financially rewarding.
Why Retirement Is Shifting Beyond Age 65
Several trends influence this shift:
- Longer life expectancy
- Higher cost of living
- Rising healthcare expenses
- Desire for financial independence
- Increased longevity in workforce participation
Delaying pensions is now seen as a smart financial strategy—not a burden.
FAQs – Goodbye to Retiring at 65
Can I still retire at 65?
Yes. But delaying payments increases your lifetime monthly pension.
Can I take CPP at age 60?
Yes—however, benefits decrease by ~0.6% per month before age 65.
How much more can I get by delaying OAS?
Delaying until age 70 gives 36% more monthly.
Can I receive OAS or CPP if I live abroad?
Yes, if you’ve lived in Canada for at least 20 years after age 18.