Here are the details about the retirement age in Canada: Is it 65 or 67? This article covers all you need to know about the retirement age in Canada, including essential information.
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Retirement Age Canada
Retirement is eagerly anticipated by many as it marks a shift away from work responsibilities to a focus on personal enjoyment and family. Planning for retirement often involves saving money and organizing pension plans.
Understanding the retirement age is essential in retirement planning. It signifies the age when individuals transition from work to dedicating more time to personal pursuits and family. In Canada, there used to be a mandatory retirement age of 65 years. However, laws have evolved, allowing Canadians to continue working indefinitely if they choose to do so.
What is the Retirement Age in Canada
The typical retirement age in Canada is 65 years, but it’s not mandatory; individuals can opt for early retirement if they have sufficient savings. Those looking to receive benefits from the Canada Pension Plan (CPP) can start as early as age 60. The amount received depends on when they choose to start receiving the pension and their CPP contributions.
Choosing to delay CPP payments results in higher monthly amounts. Canadians can begin receiving CPP benefits anytime between 60 and 70 years old. As for Old Age Security (OAS), benefits start at a minimum of 65 years old. For more details on eligibility and specific age requirements for different retirement benefits in Canada, visit the official website of the Canadian Government.
Retirement Age in Canada 65 or 67
According to Statistics Canada data from 2022, the average retirement age for women was 63.6 years, and the median retirement age was 63.8 years. For men, the average retirement age was 65.5 years, and the median retirement age was 65.2 years.
Overall, the combined average retirement age for both genders in 2022 was 64.6 years, with a median retirement age of 64.8 years. In comparison, in 2021, the average retirement age for both sexes was 64.3 years, and the median retirement age was 64.5 years.
Check the average retirement age for both males and females 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 |
Check the median retirement age for both men and women 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 further details on the average and median retirement ages in Canada, visit Statistics Canada’s website. These figures are determined based on retirement ages across public sector, private sector, and self-employed individuals. They can fluctuate annually due to multiple factors influencing retirement decisions.
All We Know About Retirement Age Canada
Determining an earlier retirement age involves considering various factors such as government pension benefits, personal retirement savings, retirement type preferences, and company pension plans. It’s important for individuals to assess all these aspects carefully to decide on their optimal retirement age. Additionally, eligibility for government benefits post-retirement should be verified to ensure comprehensive retirement planning.
Certain benefit plans impose additional requirements beyond age criteria. Factors such as retirement goals and desired lifestyle during retirement are also pivotal in determining the appropriate retirement age. Individuals contemplating major purchases or travel should assess their savings and potential benefits.
Furthermore, Canadians can utilize the Retirement Income Calculator on the official Canadian Government website to estimate federal benefits like CPP and OAS. This tool requires users to input financial details, RRSP statements, contributions, among other information.
Early retirement, typically before age 60, may be feasible for those with robust company pensions, substantial incomes, significant inheritances, and solid retirement strategies. The average retirement age ranges from 60 to 70, with some opting for late retirement at age 70 or older.