What Is The Best Age To Retire In Canada?

Retirement is the end goal for many workers – if not all. People work to earn enough money that would sustain them through their retirement years.

Now that there is no longer a mandatory age for retirement in Canada, people can choose to retire whenever they want. With many confused about what is the best age to retire in Canada, we have provided answers in this piece.

Whether your older loved ones are thinking of retiring early or later in life, they should plan properly to avoid any problems in their retirement years. Apart from the bulk money saved while actively working, there are government-paid benefits to provide financial assistance. These benefits are only accessible when they reach 65 years and above. 

Seasons Retirement is a reputed retirement community in Canada that takes pride in providing a beautiful retirement experience for older adults. They have various living options to cater to the unique needs of different older persons.

With the freedom to choose when to retire, people are opting to stop working early. Click here to know more about early retirement.

Best Retirement Age In Canada

What age can you retire in Canada? Canadians get pension benefits during their retirement years but can only access them at age 65. Due to this clause, a percentage of working individuals believe that 65 is the best age to retire in Canada

While this may seem like the most logical option, a different section prefers early retirement and another fancy late retirement – above 65.

Since there are different categories of retirees, we would go over each of them to find out the best age to retire in Canada. But before that, let us take a quick detour to see what retirement benefits are.

Retirement Benefits

Retirement benefits are programs created by the government and employers to compensate retired employees. They help sustain a person for the period of their retirement and can come in the form of money and healthcare. 

The government and employers store retirement benefits for retirees during their working years. To make up an employee’s benefits package, the government or employer takes out a certain percentage of the worker’s salary periodically while adding a specific amount of money themselves as well.

In Canada, there are three government retirement benefits, and one can be eligible to receive all of them. We will discuss them briefly.

Canada Pension Plan (CPP)

Like all other pension plans, the Canada Pension Plan (CPP) allows you to have a regular source of income when you retire. The government automatically deducts a portion of your salary periodically for safekeeping. You could call it a periodical contribution to your future. 

Think of CPP as the government helping you to save for your retirement. For eligibility, you need to have contributed to CPP at least once. Disbursal is for people who are 65 years and above.

Old Age Security Program (OAS)

This pension is different from CPP. Here, you don’t have to make any financial contributions to your retirement benefit. Eligibility for OAS depends on how long you have lived in Canada.

All you need to qualify for the program is to be a Canadian citizen or a legal resident for up to 10 years. 

You aren’t required to have worked or earned money in Canada to be eligible. Note that you only start to receive OAS when you are 65 years of age.

Guaranteed Income Supplement Program (GIS)

This pension is like a complementary pension to OAS. It is reserved for low-income retirees in Canada. Like OAS, you do not need to pay or contribute to be eligible.

To qualify for GIS, you should be 65 and above and reside in Canada. Depending on your income, if you are eligible for OAS, you should also qualify for GIS.

Categories Of Retirees

Category One: Early Retirees (30-40 Years And Younger)

With the FIRE movement, many people are buying into the idea of retiring early. FIRE means Financial Independence, Retire Early.

It encourages people to pursue their dreams to stop working early by putting certain measures in place or by living a particular way. It involves aggressive moneymaking and profitable investments while you are actively working. 

To facilitate early retirement, people adopt conservative lifestyles so they can save a large percentage of their income for their retirement years.

Also, they invest in passive income where they can earn extra money without working. This way, even though they don’t get their pension until 65, they’ll still have a sufficient sum to keep them going till then.

The saved income will augment government pensions for financial buoyancy because it would not be wise to depend only on pension plans, as they may be insufficient.

Category Two: Average Retirees (60-64 Years)

This set of people retire in time to start receiving their pension. This way, they can get on with their planned retirement lifestyle with the monthly income from the government.

Because the government pension is not usually sufficient to cover their needs, they work extra hard at saving and earning enough money before retiring.

Category Three: Late Retirees (65 And Above)

Canada has an advanced health sector that guarantees good health to its citizens and, ultimately, longer life. With people living longer and a desire to keep busy, they may decide to continue working past the age of 65 and retire at a later age.

Another set of people in this category is those who really love their job and are not ready to call it quits yet. Such persons can receive salaries for longer and gain more from their government pension.


So, what is the best age to retire in Canada? You’re in the best position to provide an answer. Consider the three categories, do your research, and weigh your options. 

Afterward, pick the option that best suits you and start to plan toward it. You might need a financial planner to help you work out the possible kinks you might encounter in your preparations for retirement.

Leave a Reply

Your email address will not be published. Required fields are marked *