Canada Ends Retirement at 65 — Major Pension Age Changes Leave Seniors Rechecking Their Plans

A major shift in Canada’s retirement landscape is underway, with the federal government confirming that the traditional retirement age of 65 will be phased out starting in 2025. The change, which aligns pension access with modern workforce patterns and longer life expectancy, has prompted many older Canadians to reassess their financial plans. In Halifax, 64-year-old school custodian Peter Langford said the announcement “threw my whole timeline off — I’ve been planning around 65 for decades”.

The federal plan will gradually transition Canada away from relying on age 65 as the universal marker for retirement eligibility, instead shifting toward a flexible model based on contribution history, labour intensity and individual circumstances.

What’s Changing in 2025

• The fixed retirement age of 65 will be removed as a standard eligibility marker for federal pension programs.
• Canadians will transition into a flexible retirement system that considers years of contribution, work type and personal capacity.
• Some workers — such as those in physically demanding careers — will be able to access retirement benefits earlier.
• Others may see their retirement age shift beyond 65 depending on contribution gaps or higher income levels.
• CPP, OAS and GIS rules will be gradually aligned with the new framework over several years.

Real Stories Behind the Policy

For Winnipeg construction worker Maria Torres, the change feels like overdue recognition. “I’ve worked a tough job my whole life. I can’t make it to 67 or 68 like office workers. If they let people like me retire earlier, that’s fair,” she said.

Meanwhile, Toronto financial consultant Raymond Cho, 63, worries the shift may disadvantage those who planned carefully for retirement at 65. “If timelines move even two years, it throws off the entire financial plan — savings, investments, everything,” he said.

Government Statements

A spokesperson for Employment and Social Development Canada (ESDC) said the shift reflects long-term demographic realities. “Canadians are living longer and working differently. A flexible pension model ensures sustainability and fairness while recognising diverse work histories,” the spokesperson said.

The government added that more details will roll out gradually, with clear guidance provided through CRA and Service Canada portals.

Analysis and Data Insight

Canada’s senior population is projected to surpass 10 million by 2030, placing significant pressure on national pension systems. Meanwhile, workforce participation among people aged 55–69 continues to rise, with many Canadians delaying retirement either by choice or necessity.

Studies consistently show that workers in manual labour or caregiving roles experience earlier physical decline, making fixed-age retirement systems inequitable. The new structure attempts to address that imbalance.

Comparison Table: Retirement Age Before vs After 2025

Category	Before 2025	After 2025
Standard Retirement Age	65	Flexible range based on criteria
Early Access Options	Limited	Expanded for high-intensity careers
CPP Access	Begins at 60 with penalty	Adjusted for contribution history
OAS Access	Begins at 65	Expected to shift to flexible model
Eligibility Basis	Age-focused	Work history + personal circumstances

What You Should Know

Canadians nearing retirement should prepare early:

• Review CPP contribution history and projected benefits through My Service Canada Account.
• Consider how delayed or early access could affect long-term income.
• Assess whether your job type qualifies for earlier retirement under hardship or contribution-based pathways.
• Update financial plans, including RRSP withdrawals and private pensions.
• Watch for federal announcements explaining how the transition will be phased.

Q&A Section

1. Does this mean no one retires at 65 anymore?
   You can still retire personally at 65, but government pensions will no longer rely on age 65 as the sole trigger.
2. Will some people retire earlier?
   Yes, workers in demanding jobs may qualify for earlier access.
3. Will others retire later?
   Yes, depending on contribution history and income level.
4. Does this affect current retirees?
   No, only those not yet receiving CPP or OAS.
5. Will CPP early access rules change?
   Adjustments are expected as the flexible model rolls out.
6. When will full details be published?
   Throughout 2025 via ESDC and Service Canada.
7. Will the change increase pension amounts?
   Not necessarily — it affects timing more than payment value.
8. Does this impact GIS?
   Yes, GIS eligibility will shift alongside OAS updates.
9. What if I’ve already planned for 65?
   You should review your retirement plan with updated timelines.
10. Is this similar to changes in other countries?
    Yes, several OECD nations are moving to flexible retirement ages.
11. Will private pensions be affected?
    Not directly, but company policies may adjust.
12. Are self-employed workers included?
    Yes, CPP contributors of all types are impacted.
13. Does life expectancy influence this change?
    Yes, rising longevity is a key factor.
14. Can I still receive CPP at 60?
    Likely yes, but rules may modify for certain groups.
15. Is the change permanent?
    Yes, it is a structural reform to Canada’s retirement system.