For decades, Canadians have seen age 65 as the traditional milestone for retirement — a time when one stops working and begins receiving Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. However, as life expectancy continues to rise and Canadians remain healthier for longer, that old standard is evolving.
With the recent announcement from the Government of Canada, the retirement age is set to increase from 65 to 67, starting October 2025. This change marks a new era in how Canadians plan for retirement, savings, and long-term financial security. Importantly, this adjustment will not affect existing pensioners — it will only apply to new applicants after the policy takes effect.
Why the Retirement Age is Changing
The government’s goal behind this reform is twofold — to ensure financial sustainability of public pension programs and to provide greater flexibility for Canadians.
Instead of a fixed retirement age, individuals can now choose to begin collecting their CPP and OAS benefits earlier, on time, or later, based on their personal and financial circumstances.
Those who delay retirement will receive higher monthly payments, offering an incentive to stay in the workforce longer. This approach ensures that Canada’s pension system remains economically viable while empowering citizens to retire when it best suits them.
CPP and OAS Explained: A Quick Overview
Under the current system, Canadians can begin receiving CPP anytime between ages 60 and 70.
- Taking CPP early (at 60) reduces payments by about 36%.
- Waiting until 70 increases benefits by 42%.
- The full CPP benefit at 65 is approximately $1,433 per month for maximum contributors.
Similarly, OAS benefits are structured to provide support to seniors across Canada, with rates adjusted quarterly to reflect inflation.
- From October 2025, base OAS rates will be $740.09 for ages 65–74 and $814.10 for ages 75+, representing a 0.7% increase.
New Eligibility Criteria for OAS and CPP in 2025
To qualify under the new system, applicants must meet the following requirements:
- Must be a Canadian citizen or permanent resident.
- Must have lived in Canada for at least 10 years after turning 18.
- Must have 40 years of residence in Canada for full OAS eligibility.
- CPP eligibility is based on years of contributions to the plan.
- Must meet the new retirement age requirement (likely 67).
- Must possess valid government ID and a Social Insurance Number (SIN).
How to Apply for CPP and OAS in 2025
Applying for CPP and OAS is straightforward and can be completed online:
- Visit the official Government of Canada website.
- Log in or register for a My Service Canada Account (MSCA).
- Choose “Apply for CPP Retirement Pension” or “Apply for OAS.”
- Fill out the form with accurate personal, banking, and employment details.
- Upload necessary documents (ID, proof of age, SIN, etc.).
- Submit your application and monitor status updates in your MSCA dashboard.
Required Documents
- Government-issued ID (Driver’s License or Passport)
- Social Insurance Number (SIN) card or letter
- Proof of address (utility bill, rent receipt, or property record)
- Direct deposit bank details
- Record of Employment or proof of CPP contributions
- Birth certificate or valid proof of age
Pension Amounts and Payment Schedule
| Age You Start CPP | % of Full Pension | Example Monthly Amount |
|---|---|---|
| 60 | 64% (36% less) | $915 |
| 65 | 100% (Full) | $1,433 |
| 70 | 142% (42% more) | $2,030 |
| OAS Age Group | Monthly Amount (Oct 2025) |
|---|---|
| 65–74 | $740.09 |
| 75+ | $814.10 |
Payments are made monthly via direct deposit, with the next scheduled OAS/CPP payment on 29 October 2025.
Checking Your Application Status
To track your CPP or OAS application status:
- Visit canada.ca and log in to My Service Canada Account (MSCA).
- Select “My Applications.”
- Choose CPP/OAS Application Status to view real-time updates.
- For support, call 1-800-277-9914 or update your online profile for instant notifications.
The Latest on Canada’s Retirement Policy
While the official retirement age remains 65 today, new pensioners applying after October 2025 will likely face the new eligibility age of 67. This reform is designed to balance fiscal responsibility with flexibility and fairness, ensuring Canada’s retirement system remains robust for future generations.
Frequently Asked Questions
1. What is the new retirement age in Canada?
Starting October 2025, the retirement age will increase to 67 for new pensioners.
2. What is the maximum CPP benefit at 65?
The maximum CPP payout in 2025 is $1,433 per month for full contributors.
3. When is the next CPP and OAS payment date?
The next payment date is October 29, 2025, through direct deposit.
4. Will this change affect current retirees?
No. Existing pensioners will not be affected by the new policy changes.
Conclusion
Canada’s shift from retiring at 65 to 67 marks a significant transformation in national pension policy. This change reflects modern realities — longer lifespans, healthier lifestyles, and a need for sustainable pension funding. While it means waiting longer to collect full benefits, it also offers greater flexibility, allowing Canadians to design retirement on their own terms.
