For decades, the idea of retiring around age 65 dominated the Canadian narrative: people would leave the workforce, begin drawing pension benefits, and enter their “golden years.” But with longer life expectancy, changing demographics, and fiscal pressures, that paradigm is shifting.
As of October 2025, Canada is poised to redefine the retirement timeline by raising the eligibility age for major public pensions namely Old Age Security (OAS) and the Canada Pension Plan (CPP) from 65 to 67 for new claimants.
This change does more than delay benefit payments; it transforms how Canadians must plan for work, savings, and retirement itself. In this blog, we’ll explore what’s behind the shift, how it affects various groups, and how to adapt strategically.
Goodbye to Retirement at 67-Overview
| Article on | Goodbye to Retirement at 67 – The New Age for Collecting OAS & CPP Changes Everything in Canada |
| New Retirement Age | OAS & CPP eligibility moves from 65 → 67 (effective October 2025). |
| Who’s Affected | Only new applicants after the change — current retirees stay protected. |
| Early Claim Option | Still possible from age 60, but with reduced payments. |
| Delayed Benefits | Waiting past 67 increases your monthly income. |
| Reason for Change | Canadians live longer; ensures pension sustainability for the future. |
Why the Change? Pressures, Realities & Intentions
Demographic Shifts and Longevity
One of the core drivers is that Canadians are living longer and staying healthier in older age. The number of years people spend in retirement has grown, placing more strain on public pension systems. The longevity factor demands that pension structures become more sustainable over the long run.
Fiscal Sustainability
Public pension plans like OAS and CPP are funded by taxpayers and contributors. As the ratio of retirees to working-age people shifts unfavorably (i.e. more retirees supported by fewer workers), governments must find ways to maintain balance. By delaying eligibility, the government hopes to reduce the financial burden of pension payouts and extend the solvency of these systems.
Incentivizing Later Work & Partial Retirement
Raising the pension age isn’t strictly a penalty. It also nudges people to stay in the labor force longer, transition more gradually, or delay claiming benefits actions that can increase lifetime income and reduce dependency. The policy is intended to give more flexibility: rather than a rigid “retire at 65 or earlier,” Canadians may choose a path that better suits their health, career, and financial cushion.
“Retirement is no longer just an age, but a plan.
With OAS and CPP moving to 67, preparation is everything.”
The Old System: What Canadians Could Expect Before
Under the previous setup:
- CPP eligibility could begin between ages 60 and 70. If you started drawing CPP at 60, your monthly amount would be significantly reduced (around 36 % lower than the full amount). Waiting until age 70 boosted the benefit (around 42 % above the full amount).
- Full CPP at age 65 for someone with maximum contributions was projected to be around CAD 1,433 per month (as an example benchmark).
- OAS (Old Age Security) would generally begin at age 65, with the monthly amount tied to inflation indices. For example, OAS in October 2025 was cited as approximately CAD 740.09 for people aged 65–74, and CAD 814.10 for those 75 and older.
Who’s Affected — and Who Isn’t
New Applicants & Future Retirees
If you plan to retire in the coming years and haven’t yet applied for CPP or OAS, this change will directly affect you. You’ll need to push back your timeline or adjust your strategy to bridge the extra two years without public pension income.
Mid-Career Professionals
Those in their 40s and 50s must re-evaluate their retirement roadmap. Extra savings, delayed retirement, or phased withdrawal plans (working part-time beyond 65) become more critical.
Protected Groups
Current pensioners and those already on OAS/CPP will not have their benefits modified. Their eligibility and payout schedules remain under the old rules.
Low-Income or Vulnerable Populations
For people with limited access to savings, the adjustment can create hardships during the extended pre-benefit years. It places greater importance on supporting policies, safety nets, or transitional supports (e.g. subsidized health care, income support, or part-time employment options).
How to Apply for CPP & OAS (Post-Change)
The application mechanics remain broadly similar:
- Create or log in to a My Service Canada Account (MSCA) through the government portal (canada.ca).
- Select “Apply for CPP Retirement Pension” or “Apply for OAS.”
- Fill in your personal, employment, and financial history.
- Provide the necessary supporting documents (proof of identity, proof of age, Social Insurance Number, employment records or contribution history, banking details for direct deposit).
- Submit and monitor application status under “My Applications” in your MSCA dashboard.
- For questions or concerns, Service Canada helplines continue to operate (e.g. 1-800-277-9914).
Pros and Cons: What This Change Brings
Pros
- Longer sustainability for public pensions — Reduces strain on government finances amid aging populations.
- Stronger incentives to remain productive — Encourages continued participation in the economy.
- Higher lifetime benefits for those who delay — For those able to wait, monthly payments may be more generous.
- More personal control in retirement planning — The new regime underscores the need to actively manage when and how to retire.
Cons
- Greater burden on future retirees — Delayed pension access implies more self-funding in the interim.
- Potential inequality impact — Disadvantaged groups may struggle to bridge the gap between end of employment and new eligibility.
- Labor market pressure on older workers — Some fields or roles won’t accommodate older employees easily.
- Psychological and social effects — The shift may affect how people envision “retirement” and life transitions.
Final Thoughts
The shift from an assumed retirement age of 65 to a new baseline of 67 for OAS and CPP is more than a policy tweak; it signals a transformation in how Canadians must think about work, aging, and financial security. For future retirees, the stakes are higher: bridging extra years without public pensions, maximizing savings, reconsidering retirement timing, and staying active in the workforce (directly or semi-retired) may become the norm.
FAQs for Goodbye to Retirement at 67
What’s new?
OAS and CPP eligibility age rises from 65 to 67 starting October 2025.
Who’s affected?
Only new applicants after 2025 — current retirees are safe.
Can I still claim early?
Yes, from age 60, but payments are reduced.
Can I delay?
Yes, delaying past 67 means higher monthly benefits.
Why the change?
To handle longer life spans and protect pension sustainability.
