For most Canadians, the classic age of 65 isn’t a solid retirement marker anymore. Thanks to advances in health care, many folks are living into their mid-80s, meaning retirement could last anywhere from 20 to 30 years. The longer the time span, the tougher the $ problem becomes. Simply living longer eats into savings, drains pensions, and puts big pressure on government help like pensions.
Why Starting Later is Key
Past age 60, your choice on when to claim your pensions really affects your budget. Taking the Canada Pension Plan (CPP) early, at 60, means a 36% smaller cheque every month. If you wait until 70, the monthly amount can grow by as much as 42%. The Old Age Security (OAS) works the same way, with a 36% boost if you delay until 70. These rules nudge people to stay on the job longer to keep their retirement plans from crashing.
Will 67 Be the New 65?
The idea of moving the OAS age to 67 was flirted with in 2012, then parked in 2016. But with a growing crowd of retirees and fewer people paying into the system, the age bump could pop back up on the agenda. A lot of other countries have already raised the age to keep their plans from going broke, so Canadians will want to keep one eye on the news.
Canada’s Over-65 Workers Are Everywhere
In 20 years the share of Canadians over 65 who hold a job has shot up from 10 percent to nearly 20 percent. Money isn’t the only reason: many older people cherish a daily routine, chats by the water cooler, and the satisfaction of finishing a task. “Retirement” now usually unfolds slowly. People edge away from the desk instead of slamming the office doors shut one Friday.
Craft a Timeline That’s Uniquely Yours
Planning retirement today looks less like filling in a fill-in-the-blank calendar and more like knitting a custom scarf. Your perfect “last day” hinges on bank balance, health, and what kind of quiet bookshelf or ocean hammock you picture. For some, the choice to clock out early comes easy; for others, a paycheck beyond 65 offers freedom to travel or afford medicine. In the end, the only deadline that counts is the one you stretch, keep, or toss away based on what you want and what you can afford.