Retirement in Canada is something most workers think about long before it happens. The usual age has always been pretty clear—CPP can start at 60, and OAS begins at 65. But now, with growing talk about the CRA Retirement Age Increase in 2025, people are wondering if they’ll have to work longer before accessing their pension benefits.
Is retirement at 65 going away? Will OAS and CPP start later than before? Let’s break down what’s really going on.
Update
In 2025, there’s been a lot of buzz about a possible increase in Canada’s retirement age. The claims suggest that the age to receive Old Age Security (OAS) could shift from 65 to 67 years, following the global trend of adjusting retirement ages to match longer life expectancy and increased financial pressures on pension systems.
Right now, there is no official confirmation from the Canadian government, CRA, or Services Canada. So technically, nothing has changed yet. But if it does, those not yet retired—especially younger workers—might have to wait longer to collect benefits and may end up contributing more into the system.
Snapshot
Here’s a quick look at the current and proposed retirement age changes:
| Retirement Program | Current Age | Expected New Age |
|---|---|---|
| CPP (early) | 60 | No change |
| CPP (standard) | 65 | Possible 67 |
| OAS | 65 | Possible 67 |
| GIS | 65 | Possible 67 |
The potential shift is part of an ongoing conversation about the sustainability of retirement programs and the strain that an aging population can place on government-funded benefits like OAS and GIS.
Current Age
So what’s the retirement age right now in Canada? It actually depends on which benefit you’re talking about. Here’s how it works:
- Canada Pension Plan (CPP): You can start receiving this benefit at 60, but it comes with a permanent reduction. The standard age is 65, but delaying up to age 70 increases your monthly amount.
- Old Age Security (OAS): Starts at 65, with the option to delay up to 70 for higher monthly payments. You can’t take this one early.
- Guaranteed Income Supplement (GIS): Starts at 65 and is only available to low-income OAS recipients. There’s no early or delayed option.
This flexibility helps Canadians decide what works best for their financial and lifestyle needs. But if the rules change, that flexibility might shrink.
Reason
Why would Canada consider increasing the retirement age? There are a few major reasons:
- Life expectancy is rising, meaning people are living longer and drawing benefits for more years
- The pension system is under pressure, especially OAS, which is funded from general tax revenue
- CPP is funded by worker contributions, so more people drawing benefits puts stress on the system unless contributions also increase
By raising the retirement age, the government could reduce its financial obligations and give more time for workers to contribute.
Impact
If the retirement age does increase, what could it mean?
- Current retirees won’t be affected. Their benefits will continue as usual.
- Near retirees may need to rethink their plans and prepare for a later retirement date.
- Younger workers might need to work longer and contribute more before they qualify.
But remember, none of this is official yet. These are only speculations based on economic and demographic trends.
Planning
So, what should you do?
- If you’re nearing retirement, it’s smart to stay updated through the Service Canada portal
- Make sure you know all your benefit options, especially how early or late retirement impacts your income
- Consult a financial planner to explore how possible changes could affect your long-term strategy
Whether the age rises or not, your best move is to be informed and ready.
Summary
As of now, the CRA Retirement Age Increase 2025 is not confirmed. The standard retirement age for CPP remains 65 (or 60 with reduction), and OAS and GIS continue to be available from age 65. But the talk of raising it to 67 is gaining traction. If this happens, it will mostly impact younger and future retirees—not those already receiving benefits.
Keep an eye on announcements from CRA and Service Canada for any official changes. Until then, the retirement age in Canada stays the same.
FAQs
Is retirement age increasing in Canada?
Not officially yet, but there’s speculation it may rise to 67.
Will current retirees be affected?
No, those already retired won’t be impacted.
Can I still take CPP at 60?
Yes, early CPP at 60 is still available with reduced payments.
Why increase the retirement age?
To address life expectancy and pension program sustainability.
Where can I check updates?
Visit the Service Canada or CRA websites for updates.
