Find out whether the Canada retirement age in 2024 is 65 or 67. Explore the factors affecting retirement age, changes in legislation, and what it means for your retirement plans. Stay informed to make the best decisions for your future.
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What is the Official Retirement Age in Canada?
In Canada, the official retirement age for government benefits, such as the Canada Pension Plan (CPP) and Old Age Security (OAS), remains at 65. However, Canadians can choose to start receiving their CPP as early as age 60 or delay it until age 70, with adjustments to the monthly payment amount depending on the age at which they begin to collect.
Proposed Changes to the Retirement Age
While the official retirement age is currently 65, there has been ongoing discussion about increasing the age to 67. This idea has been proposed in the past, particularly regarding OAS, to account for longer life expectancy and the sustainability of pension systems. However, as of 2024, the age for receiving OAS remains at 65, with no official changes to push it to 67.
Average Retirement Age in Canada
Despite the official retirement age being 65, the average retirement age in Canada is around 64 years. This average fluctuates depending on various factors, including economic conditions, personal savings, health, and career satisfaction. Some Canadians choose to retire earlier, while others continue working beyond 65, particularly if they enjoy their work or feel financially insecure.
Working While Receiving CPP Benefits: Do Age & Earnings Matter?
OAS Payment Dates 2024, Increase & More!
CPP & OAS Increase 2024: Future Benefits & What to Expect
CPP Survivor Benefits: How Long Will i Receive & Who is Entitled?
CPP Payment Dates 2024, Increase, Disability Benefit, CPP Amount & Limit
Early and Late Retirement Options
- Early Retirement: Canadians can start receiving their CPP at 60, but the benefit will be reduced by 0.6% for each month before their 65th birthday. This means if you start receiving CPP at 60, your payments will be 36% lower than if you had waited until 65.
- Delayed Retirement: If Canadians choose to delay their CPP benefits until after 65, they receive an increase of 0.7% for each month they defer, up to age 70. This results in a maximum increase of 42% if they wait until 70 to start collecting CPP.
As of 2024, the official retirement age in Canada remains 65, but there is flexibility within the system to retire earlier or later, with corresponding adjustments to pension benefits. While discussions about increasing the retirement age to 67 have occurred, no changes have been implemented, and the average retirement age remains around 64 years.
For those planning their retirement, it’s essential to consider your financial situation, health, and personal preferences when deciding the best time to retire.