Have you ever wondered why many people in Canada are working past the age of 65? In the past, most people retired around age 65 and stopped working. But today, the story is different. Statistics Canada has shown that people are working longer than ever before. In fact, the average retirement age has gone up to over 65 years old! What Stephen Harper tried to legislate is being achieved through the Liberal’s policies and economy.
In 2025, the average age Canadians retire is about 65.4 years. Men tend to retire a little later, at about 66.2 years, while women retire around 64.5 years. This is a big change from the past when most people retired younger.
There are many reasons for this trend, and it’s influenced by how our society and economy are changing.
In earlier generations, women often left the workforce early to raise families. Now, women stay in jobs longer and have earned better pensions.
Canada’s population is getting older. Fewer young people are entering the workforce because of lower birth rates, and fewer immigrants are arriving. This means there are fewer young workers to fill jobs. Because of this, employers are relying more on older, experienced workers to keep their businesses running.
Canada’s economy is shifting toward jobs in services, technology, health, and professional work. Many of these jobs need skills and experience, which older workers have. Plus, many of these jobs are less physically demanding than jobs in the past, so people can work longer.
Many in their 60s, 70s, and even 80s are in good health. Because they feel good and want to stay active, some choose to work longer or switch to part-time work instead of retiring completely.
Canada used to have a law that everyone had to stop working at age 65, but that was changed in 2009. Now, people can choose to work past 65 if they want. Employers and the government are also becoming more open to older workers, making it easier for them to stay employed.
Since 2009, it’s no longer mandatory to retire at 65.
The average retirement age has increased by about 3.4 years since 2002.
Women tend to retire earlier than men, at about 64.5 years old, compared to 66.5 years for men.
Many Canadians plan to work longer, with more considering part-time jobs after retirement.
Many retiring Canadians carry some debt, including mortgages, but most believe they are managing their money well going into retirement.
Some people retire early because they have enough money, inherit wealth, or want to stop working for health reasons. Others stay longer because they need the income or want to stay active.
In Canada, people can start getting government benefits like Old Age Security (OAS) at age 65, but they can also choose to wait and get more money later. The Canada Pension Plan (CPP) can be started at age 60 or later, and waiting can increase the amount you receive.
Deciding when to retire depends on each person’s situation. Some can afford to retire early, while others need to work longer to save enough money. Many Canadians retire between 60 and 70 years old, depending on their finances and health.
The average retirement age in Canada is now over 65, and more people are working longer because of changes in society, health, and the economy. The trend shows Canadians are adjusting to longer lives and more active lifestyles. As the population continues to age, it’s important for policies and employers to support older workers and help ensure everyone can retire comfortably when they choose.
Read more – Retirement and post-retirement employment among older Canadians
