Canada Retirement Age Update 2025: What New OAS & CPP Changes Could Mean for Your Future : Canada’s retirement landscape is shifting, and major updates may be on the horizon. As 2025 brings renewed conversations about how and when Canadians can retire, there’s growing buzz around possible changes to the age you can access your Old Age Security (OAS) and Canada Pension Plan (CPP) benefits.
Retirement Age in Canada: A Tradition Under Review
For generations, age 65 has been the magic number signaling retirement for Canadians. But with Canada’s population aging rapidly and people living longer than ever, government officials and policy experts are rethinking what “retirement age” really means—and how to keep our public pension programs sustainable.
What’s under discussion?
Raising the OAS eligibility age: The government is considering moving the starting age for OAS from 65 up to 67, gradually over time.
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Delaying CPP incentives: Changes may also encourage Canadians to wait longer before claiming CPP, offering increased payouts for those who defer.
Current Rules: Where Things Stand
As of now, here’s how the system works:
CPP: Canadians can start receiving CPP as early as age 60 (with a reduced amount), or wait until age 70 for higher monthly payments.
OAS: Payments begin at 65, but there’s a bonus for those who hold off, up to age 70.
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The proposed changes would make 67 the new standard age for OAS, and add more reasons to consider delaying both CPP and OAS.
Why Is Retirement Age Changing?
The answer is simple: demographics. By 2040, the number of Canadians over 65 is set to nearly double. That means more people collecting benefits for longer periods—creating pressure on the CPP and OAS funds. To protect the future of these vital programs, experts argue that we need to adjust when and how people can tap into these resources.
What Should You Do?
If you’re nearing retirement:
Don’t panic. Any changes would be introduced gradually, so there’s no immediate effect for those close to 65. But it’s wise to stay informed.
If retirement is further off:
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Expect a later retirement age to qualify for full benefits
Look for greater rewards for delaying CPP and OAS
Consider boosting your personal savings, especially if you want to stop working early
How to Get Ready
Now is the perfect time to:
Review your retirement plan to see how changes might affect you
Maximize your RRSP and TFSA contributions for tax-efficient growth
Log in to your My Service Canada Account to check your projected OAS and CPP benefits and start planning accordingly
The bottom line:
With the rules likely to change, the best way to secure your financial future is to plan ahead, stay informed, and make the most of every opportunity to save. As Canada’s retirement age evolves, a proactive approach today can help you enjoy the retirement you’ve always dreamed of tomorrow.