For decades, turning 65 was seen as a special milestone in Canada. It meant leaving the workforce behind and starting a relaxed, retired life. People expected to enjoy their golden years using savings, pensions, and government support like CPP (Canada Pension Plan) and OAS (Old Age Security).
But times have changed.
In 2025, many Canadians are now saying “goodbye” to the idea of retiring at 65. Today’s seniors are living longer, facing higher living costs, and dealing with smaller savings — making early retirement much more difficult.
Life Is More Expensive Now
One of the biggest reasons why many seniors are delaying retirement is the rising cost of living. Everything from groceries and rent to electricity and health care has become more expensive. While government benefits like CPP and OAS offer support, they’re often not enough to cover all expenses — especially in larger cities.
Even seniors who saved money during their careers are now watching their savings shrink faster than expected due to inflation.
Retirement Needs to Last Longer
In the past, retiring at 65 made sense because life expectancy was shorter. Now, people are living 20 to 30 years after retirement. That means savings and pensions need to last a lot longer than they used to. And for many, that’s simply not realistic without extra income.
Why Seniors Are Working Longer
More and more older Canadians are continuing to work into their late 60s or even 70s. For some, it’s a financial necessity. For others, it’s a way to stay active and connected.
Here are some ways seniors are adapting:
- Working part-time or in flexible roles
- Updating their skills, especially digital knowledge
- Seeking financial advice to better manage pensions and savings
- Delaying CPP or OAS to receive higher monthly payments later
Rumors About Retirement Age Going Up
There have been talks in Canada about raising the official retirement age — possibly to 67 or even 70 — like in some other countries. Although no decision has been made yet, the government does encourage delaying benefits by offering bonus payments for those who wait.
For example:
- Delaying CPP until age 70 gives a 42% higher payment.
- Delaying OAS until 70 gives a 36% increase in benefits.
A New Retirement Reality
The traditional idea of relaxing at 65 is becoming less common. Many seniors simply can’t afford to stop working. But with the right planning, working longer doesn’t have to feel like a burden.
By adjusting to today’s financial reality — and staying physically and mentally active — seniors can still enjoy a fulfilling life, even if retirement comes a little later than planned.
Retirement isn’t one-size-fits-all anymore. It’s about finding balance — between financial security and personal well-being — in a world that’s constantly changing.