Many people look forward to retirement as a time when they no longer need to focus on work responsibilities, allowing them to enjoy their lives and spend more time on personal interests. Retirement planning often involves saving funds and organizing essential aspects such as pension plans.
A crucial element of retirement planning is knowing the retirement age, which marks the transition from work to more personal time. Historically, the mandatory retirement age in Canada was 65. However, this law has changed, and Canadians can now work indefinitely if they choose.
What is the Retirement Age in Canada?
The standard retirement age in Canada is 65, but it is not mandatory. Individuals with sufficient savings can opt for early retirement. If someone wants to receive Canada Pension Plan (CPP) benefits, they can start as early as age 60. CPP benefits depend on when an individual begins their pension and their CPP contributions.
The longer someone waits to receive their CPP pension, the higher their payments will be. Canadians can choose to start their CPP pension anytime between the ages of 60 and 70. For Old Age Security (OAS), the minimum age to start benefits is 65. For detailed information on retirement benefits and age requirements, visit the Canadian Government’s official website.
Retirement Age in Canada: 65 or 67?
For women, the average age to retire in 2022 was 63.6 years, with a median age of 63.8 years, according to Statistics Canada. The middle age for men to retire was 65.2 years, and the average age was 65.5 years.
For both genders combined, the average retirement age in 2022 was 64.6 years, and the median age was 64.8 years. In 2021, the average and median retirement ages for both genders were 64.3 years and 64.5 years, respectively.
Average Retirement Age in Canada
| 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 |
Median Retirement Age in Canada
| 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 |
For more details on average and median retirement ages in Canada, consult Statistics Canada’s website. The data is based on retirement ages from public sector employees, private sector employees, and self-employed individuals, and it can fluctuate yearly due to various factors.
All We Know About Retirement Age Canada
Determining the ideal retirement age involves several factors, including government pension benefits, personal savings, retirement type, and company pension plans. Prospective retirees should consider these elements carefully. For those planning to receive government benefits, checking eligibility is crucial.
Certain benefit plans have additional requirements beyond age. How one plans to spend retirement, such as making significant purchases or traveling, also impacts the decision. Savings and potential benefits should be assessed accordingly.
The Retirement Income Calculator available on the Canadian Government’s official website can help citizens estimate federal benefits, such as CPP and OAS. Users need to provide financial information, including RRSP statements and contributions.
Early retirement, below age 60, is possible with excellent company pensions, high salaries, substantial inheritance, and robust retirement plans. The average retirement age typically falls between 60 and 70 years, though some choose late retirement, continuing to work beyond age 70.