Retirement age in Canada has been everyday talk. Ever thought about when people in Canada stop working? That’s what we call retirement, and it’s a big decision. The usual age is 65, but some suggest maybe wait until 67.
Planning for your retirement is like getting ready for a super-sized holiday by saving money. Choosing the right age to retire in Canada, is a crucial decision that not only impacts your future but also ties into Canada benefits.
This article is about the retirement age Canada: What’s the Current retirement age in Canada – 65 or 67? Here’s what you should know about this decision and how it aligns with Canada’s benefits!
Retirement Age In Canada
Many Canadians are so busy with work that they forget about taking care of themselves. For a long time, the retirement age was 65, and people didn’t think much about it. They were more focused on job deadlines and getting ahead in their careers but now, things are changing.
Planning for retirement means thinking about how much money you’ll need and making smart choices about pension plans and saving funds. It’s not just about working; it’s about making a plan for a happy life after your job.
There before, the retirement age in Canada used to be 65, but the law changed, and now you can choose 67 if it works better for you.
This change shows that people are realising how important retirement is – a time to relax, be with family, and take care of themselves.
Also Read: Canada Pension Plan 2024
What’s the Current Retirement Age In Canada?
The standard retirement age in Canada is 65 years. However, it is not a mandatory age for Canadians to retire. The retirement age is based on how much more savings you need to retire.
If you had started saving early for retirement, you may receive your benefits from the age of 60. The Canada Pension Plan benefits are based on CPP Contributions and the age you start a retirement pension plan.
CPP allows Canadians to take pensions between 60 and 70 years old. The longer you wait for CPP Pension, the higher the CPP payments amount you receive.
Old Age Security(OAS)
Unlike the Old Age Security(OAS), the minimum age was 65. The OAS payment depends on how long you’ve lived in Canada after the age of 18, the maximum payment is for 40 years old. If you’ve lived for 20 years, you’ll receive 50% of OAS payment.
OAS 2023 maximum payments were:
- Age 65-74 with income below $134,626 up to $707.68 receive between $648.44 and $944.44 per month.
- Age 75 and above with income less than $134,626 up to $707.68 receive between $648.44 and $944.44 per month.
Average Retirement Age In Canada
The average Retirement age in Canada for males and females was 64.6 years in 2022 while the median was 64.8 years. This shows a drastic increase from 2021, where the average retirement age was 64.3 and a median of 64.5 years.
Canada Statistics shows, average retirement in 2020 for females was 63.6 years, while in 2016 was 64.2 and a median of 63.8 years. Whereas, by 2022 the average retirement age for males was 65.5 and a median of 65.2 years. This shows that females in Canada retire at a slightly younger age than males.
Here’s an overview of the average retirement age for males and females in Canada.
| Worker’s Class | 2020 | 2021 | 2022 |
| Total, all retirees | 64.3 years | 64.3 years | 64.6 years |
| Public sector | 62.1 years | 62.4 years | 62.7 years |
| Private sector | 64.6 years | 64.7 years | 64.7 years |
| Self-employed | 67.8 years | 67.6 years | 68.4 years |
Below is an overview of the median retirement age for both males and females in Canada.
| Worker’s Class | 2020 | 2021 | 2022 |
| Total, all retirees | 64.5 years | 64.5 years | 64.8 years |
| Public sector | 61.3 years | 61.8 years | 61.8 years |
| Private sector | 64.6 years | 64.8 years | 64.9 years |
| Self-employed | 66.8 years | 65.9 years | 67.8 years |
To calculate average and median retirement age you’ll use retirement ages for private sector employees, public sector employees, and self employed. This may change each year based on several factors such as:
- Employment sector
- Personal financial situations
- Government policies
- Economic conditions
- Gender
- Health and life expectancy
What Is the Average Retirement Age for Self-employed Workers in Canada?
According to a 1991-1995 Labour Force Survey by Statistics, the average retirement age for Self-employed workers in Canada is 65 years. It’s slightly older than the average retirement age for all retirees in Canada which was 61 years.
Whereas, the median age based on occupation where, Self-employed retiring later than employees in various sectors.
Final Thoughts
The standard retirement age in Canada is 65 years. However, it is not a mandatory age for Canadians to retire. The retirement age is based on how much more savings you need to retire. Whether you’re employed or self-employed what’s age is perfect to retire happily will depend on you. Choose wisely.
Resources:
- Canada Pension plan: Old Age Security
- Canada Pension Plan: Old Age Security Payments Amounts
- The Canadian Safety Net for the Elderly
