Jun 4, 2026
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For Canadians approaching retirement age, the biggest question many of them face is: ‘When can I collect OAS? Is it at 65 or 67?’ In Canada, Old Age Security (OAS) can be collected starting at 65. If someone has told you that the OAS age is 67, it’s because there was a federal proposal in 2012 to change the age to 67. That was reversed in 2016, and the age remained at 65.
So, just because you can start collecting OAS at 65 and not 67, it doesn’t mean you have to. Canadians have the flexibility to begin collecting retirement benefits from age 60 to 70. When you start can have a major impact on your financial status for the rest of your life.
Is retirement age 65 or 67 in Canada?
In Canada, there is no mandatory retirement age, and most provinces prohibit forced retirement. The standard age of 65 that is often used refers to when Canadians can collect OAS.
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While the age of 67 for OAS collection was brought in by the Conservative Government in 2012, it was never put into effect. The Liberals reversed this in 2016, keeping the minimum age for OAS collection at 65. If you ever see OAS and the age of 67 mentioned, it’s likely an outdated article.
You can begin collecting OAS at 65, but you don’t have to. When it comes to the Canadian Pension Plan (CPP), there is a whole different set of rules.
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When can you start collecting CPP?
Many Canadians confuse collecting CPP and OAS. Both are benefits meant to aid Canadians in retirement, but, perhaps confusingly, they have different sets of rules.
The Canadian Pension Plan (CPP) is much more flexible than the OAS. Canadians can begin collecting the CPP as early as age 60, or as late as age 70. But collecting your CPP early has some very real financial repercussions.
If you decide to collect your CPP early, you’ll be penalized. How much? Your CPP payments will be permanently reduced by 0.6% per month before you turn 65. The math says that if you begin collecting your CPP at 60, that’s 36% less than if you waited just five years.
On the flip side, you can also delay collecting CPP until age 70. If you decide to do this, your CPP will increase by 0.7% for every month after you turn 65. The math says that if you begin collecting your CPP at age 70, that is 42% more than if you collected at 65.
CPP Retirement Benefit Example
The average CPP payment at age 65 in Canada is about $815/month. Here’s what that would be if you started collecting that at different ages.
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- At age 60, that would be reduced to roughly $520/month
- At age 65, you would receive the full $815/month
- At age 70, that would be increased to roughly $1,150/month
Keep in mind that these figures assume a full contribution by a Canadian during their working career.
One more thing: CPP is taxable income. If you’re still working when you begin collecting it, the CPP will increase your income for the year and could even bump you to a higher tax bracket.
When does OAS start — and should you delay it?
Unlike CPP, you cannot collect your OAS before the age of 65. But, like the CPP, you can choose to delay collecting your OAS, which can pay off over the long run.
For every month after you turn 65 that you delay collecting your OAS, it will increase by 0.6%. If you can hold off until age 70, that adds up to 36% more. Here’s an example:
- At 65, the average OAS amount is about $727/month
- If you can wait until age 70, that would increase to about $990/month
On top of that, at age 75, Canadians receive an additional 10% OAS boost. This was introduced by the Canadian Government in July 2022.
Here’s one warning for high-income retirees: if your annual income exceeds $90,997, you will begin paying back your OAS at a rate of $0.15 per dollar. If you are still working at 65, it’s beneficial to delay your OAS to avoid the clawback.
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Finally, for lower-income seniors, the Guaranteed Income Supplement (GIS) does not increase if you delay your OAS. So if you are a lower-income retiree, it’s beneficial to start collecting your OAS as soon as you turn 65.
What’s the best age to retire in Canada?
Retirement is a personal decision for most Canadians. Generally, there are four factors for the ideal time to retire:
- Health and life expectancy
- Other income sources (workplace pension, RRSPs, TFSAs, real estate)
- Whether you’re still working
- Your tax situation
Canadians approaching retirement age can consider the breakeven formula: delaying their CPP from age 65 to 70 means giving up five years of payments, but they will receive a much higher monthly amount.
The “breakeven age” for most Canadians will be between 82 and 84. Why these ages?
If you expect to live longer than that, then delaying the collection of your retirement benefits will certainly pay off. If your family has a history of health concerns, then taking it earlier makes the most sense.
If you can wait until the breakeven age, then it is best to use your existing investments to bridge the gap. This includes your RRSPs, RRIFs or TFSAs.
One last note: if you retire before the age of 65, or did not work full-time when you were younger, your CPP amount will likely be less than that of someone who worked full-time.
FAQs
Is retirement age 65 or 67 in Canada?
There is no mandatory retirement age in Canada, but the traditional age has been 65. This is the age at which Canadians can begin collecting their Old Age Security (OAS) benefit.
Can I retire at 60 in Canada?
Yes, there is no mandatory retirement age in Canada. If you choose to retire at 60, you may also begin collecting your CPP at that age. Keep in mind that it comes with a permanent reduction and decreases by 0.6% every month before you turn 65.
What happens if I keep working past 65 and collect CPP?
If you are still working by the time you begin collecting your CPP, you can still contribute to it to boost your post-retirement benefit. Keep in mind that this is optional, and a higher CPP benefit could impact your post-retirement income.
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Noel Moffatt is a Canadian fintech expert with a passion for simplifying personal finance. Based in St. John’s, NL, he draws on his background in finance, SEO, and writing to deliver clear explanations and actionable advice. Noel is dedicated to equipping readers with the knowledge and tools they need to make informed financial decisions, striving to make personal finance more accessible and understandable through his in-depth articles and reviews.
