Starting in 2025, Canada’s retirement system is getting a modern makeover. While age 65 has long been the golden number for retirement—when you could start collecting Old Age Security (OAS) and Canada Pension Plan (CPP) benefits—that’s no longer the only path.
With people living longer and staying healthier well into their 70s, the government is now pushing a more flexible model that rewards those who delay their retirement.
Let’s break down exactly what’s changing and how it could impact your future.
Table of Contents
Changes
The biggest updates in 2025 revolve around the incentives tied to when you start collecting OAS and CPP. Age 65 is still the baseline, but delaying your benefits now comes with bigger financial rewards than ever before.
Here’s a snapshot of what’s new:
| Program | Start Age | Monthly Increase If Delayed to 70 |
|---|---|---|
| CPP | 65 | Up to 42% higher monthly benefit |
| OAS | 65 | Up to 36% higher monthly benefit |
There’s also an increase in OAS payments for seniors already aged 75 and over. These enhancements give Canadians more options to tailor their retirement to their personal health, lifestyle, and financial goals.
Advantages
So, why delay your benefits?
Let’s say you’re eligible for around $1,300 per month in CPP at 65. If you wait until 70, that monthly benefit could rise to $1,900 or more. That’s nearly $600 more each month for the rest of your life.
The same idea applies to OAS. While your starting payment at 65 might seem decent, holding off until 70 can mean a bump of several hundred dollars—especially when combined with new top-up amounts available to those 75 and older.
Here’s a simplified comparison:
| Age | CPP Monthly Estimate | OAS Monthly Estimate |
|---|---|---|
| 65 | $1,300 | ~$615 |
| 70 | $1,900+ | ~$835+ |
These numbers can make a huge difference in the long term, especially with rising costs of housing, groceries, and healthcare.
Strategy
But not everyone can or should wait.
Retirement decisions are deeply personal. Maybe you love your job and want to keep working. Or maybe your health makes continuing impossible. Some people retire early to travel, others because of layoffs or family needs.
That’s why there’s no “right age” to retire—only the one that’s right for you.
Still, this shift makes it more important than ever to have a plan. Canadians should:
- Review their pension and retirement statements
- Use retirement income calculators at different start ages
- Consider speaking with a financial advisor
- Log into My Service Canada Account to see OAS/CPP projections
Knowing your options means you can make smarter, more informed decisions—whether you stop working at 60 or 70.
The 2025 changes to Canada’s CPP and OAS are designed to reward those who delay, but flexibility is the key word. With better incentives and rising life expectancy, this new retirement structure offers greater control and opportunity—if you plan ahead.
FAQs
What’s the new CPP benefit at 70?
Up to 42% more than if taken at age 65.
Is OAS still available at 65?
Yes, but delaying increases monthly payments by up to 36%.
Are payments higher for seniors over 75?
Yes, OAS includes top-up increases at age 75+.
Do I have to delay CPP or OAS?
No, it’s optional. You can still start at 65.
How should I decide when to retire?
Consider health, finances, lifestyle, and future needs.
