This article provides comprehensive information on Retirement Age Canada, including whether it is 65 or 67, and other essential details.
Retirement Age Canada
Many individuals eagerly anticipate retirement as it signifies a shift away from work responsibilities to focus on personal enjoyment and fulfillment. Retirement planning often involves saving funds and organizing essential aspects such as pension plans.
Understanding the retirement age is a key component of this planning process. It denotes the age at which individuals typically cease working to devote more time to themselves and their families. In Canada, there was previously a mandatory retirement age of 65 years. However, legislation has since changed, allowing Canadians to continue working indefinitely if they choose to do so.
What is the Retirement Age in Canada
The standard retirement age in Canada is 65 years, although it is not mandatory to retire at this age. Individuals with sufficient savings can opt for early retirement if they choose. Those looking to receive benefits from the Canada Pension Plan (CPP) can start as early as 60 years old. The amount of CPP benefits depends on the age at which one starts receiving the retirement pension and their contributions to CPP.
Delaying the CPP pension results in higher payments. Canadians can begin receiving CPP benefits anytime between ages 60 and 70. As for the Old Age Security (OAS), the minimum age to start receiving benefits is 65 years. For more detailed information on retirement benefit age requirements in Canada, please refer to the official website of the Canadian Government.
Retirement Age in Canada 65 or 67
According to Statistics Canada, in 2022, the average retirement age for females was 63.6 years, with a median retirement age of 63.8 years. For males, the average retirement age was 65.5 years, and the median retirement age was 65.2 years.
For both genders combined, the average retirement age in 2022 was 64.6 years, while the median retirement age was 64.8 years. In contrast, in 2021, the average and median retirement ages for both males and females were 64.3 years and 64.5 years, respectively.
| 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 |
Additional details about the average and median retirement ages in Canada can be found on the Statistics Canada website.
| 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 |
These figures encompass retirement ages from public sector employees, private-sector employees, and self-employed individuals. The average and median retirement ages can vary annually based on multiple factors.
All We Know About Retirement Age Canada
Several factors contribute to determining an earlier retirement age, including government pension benefits, personal retirement savings, type of retirement plan, and company pension schemes. Individuals should carefully consider these factors when deciding their retirement age, especially if they plan to rely on government benefits post-retirement.
Certain benefit plans may have additional requirements beyond age criteria. Lifestyle preferences, such as travel or major purchases, also influence retirement decisions. It’s important to assess personal savings and potential benefits available.
Additionally, Canadians can utilize the Retirement Income Calculator provided on the official Canadian Government website to estimate federal benefits like CPP and OAS. This tool requires input of various financial details, including RRSP statements and contributions.
Early retirement, typically below age 60, may be feasible with substantial company pensions, high income levels, significant inheritances, and robust retirement plans. The average retirement age generally falls between 60 and 70, though some individuals opt for later retirements, beyond age 70.