(CANADA) Canada has formally ended Mandatory Retirement at age 65, a major shift that takes effect on November 10, 2025 and gives seniors, including many immigrants, far more control over when they stop working and begin drawing public pensions. The federal change replaces a fixed retirement age with a flexible system linked to the Canada Pension Plan (CPP), where people can now decide to start benefits any time between ages 60 and 70. Instead of a one‑size‑fits‑all rule, retirement becomes a personal choice shaped by health, work plans, and financial needs for older workers across the country.
Core choices under the reform
At the heart of the reform are two core choices:
- Early‑Retirement Option — for those who want to stop working before 65.
- Deferred‑Retirement Option — for people who plan to work longer.
Under CPP rules:
- Individuals can begin collecting retirement benefits as early as age 60, but they accept a lower monthly amount in return for receiving payments over a longer period.
- Those who delay beyond 65 can wait up to age 70, and are rewarded with higher monthly payments that reflect extra contributions and a shorter overall payment period than they would have received at 65.
Financial impact (CPP calculations for 2025)
The official CPP calculations for 2025 show clear differences between early and deferred claiming.
- Early claiming reduces the pension by about 0.6% for every month before 65.
- Claiming at 60 results in roughly 64% of the full pension payable at 65.
- Delaying claiming increases the pension by about 0.7% for every month after 65.
- Waiting until 70 results in roughly 142% of the full pension payable at 65.
The maximum CPP payment at 65 this year is $1,433 CAD per month before tax and other possible deductions.
When planning, compare CPP projections at ages 60, 65, and 70 using official estimates; assess how early or deferred retirement changes monthly payments and total pension duration.
| Option | Age range | Monthly effect (approx.) | Result vs. age 65 |
|---|---|---|---|
| Early‑Retirement | 60–64 | −0.6% per month before 65 | ~64% if claimed at 60 |
| At 65 (baseline) | 65 | — | 100% |
| Deferred‑Retirement | 66–70 | +0.7% per month after 65 | ~142% if claimed at 70 |
| Maximum CPP at 65 (2025) | — | — | $1,433 CAD/month before tax |
Employer and workplace implications
Ending mandatory retirement changes the relationship between older workers and employers.
- Companies and public bodies can no longer push someone out solely because they turned 65, aligning federal policy with age discrimination protections in human rights laws.
- Employers must now address performance, accommodation, and succession planning rather than relying on a fixed exit date.
- Some businesses worry about higher benefit costs if more staff stay beyond 65; others see benefits in retaining experienced workers who mentor colleagues and maintain client relationships.
- Industries with labour shortages — including health care and skilled trades — may welcome options for seasoned staff to work longer on flexible or part‑time schedules.
The government says longer, healthier lives mean many people want to keep working, whether to stay active, delay CPP, or support family members.
Implications for immigrants, temporary workers, and permanent residents
The reform may reshape long‑term planning for people who arrived in mid‑career or who are still building CPP contribution histories.
- New freedom to work past 65 means someone who came to Canada at 45 and later became a permanent resident might choose to work past 65 to increase their CPP monthly amounts via the Deferred‑Retirement Option.
- Conversely, the Early‑Retirement Option still appeals to those in physically demanding jobs or with health problems (e.g., construction, factory work, long‑haul trucking), who might claim CPP at 60 and accept reduced payments to leave strenuous work earlier.
- Immigrants with strong family ties abroad sometimes plan to return home after retirement; a lower Canadian pension may stretch further if living costs are cheaper elsewhere.
The new rules let individuals weigh trade‑offs rather than facing a hard retirement deadline at 65 imposed by previous federal rules.
Interaction with Old Age Security (OAS)
- Old Age Security (OAS) remains available starting at 65, but can also be delayed for higher payments.
- Many immigrants who qualify for both OAS and CPP will consider mixing timelines:
- Example strategies: take OAS at 65 while deferring CPP to 67 or 68 to grow the work‑based pension, or the reverse if work history in Canada is short.
- The federal message: timing can be adjusted — the state no longer locks everyone into a single birthday for retirement.
If you’re an immigrant with interrupted work history, verify how CPP interacts with OAS and any social security agreements to avoid income gaps in retirement.
Official guidance and analysis resources
Official guidance on the new framework is available through the Government of Canada’s CPP information portal, which explains contribution histories, application steps, and payment examples in detail on its Canada Pension Plan retirement pension page.
Independent analysis highlights particular importance for newcomers:
- According to VisaVerge.com, the flexible age range is especially important for people whose careers have been interrupted by study permits, closed work permits, or time spent outside Canada.
- Those gaps can lower final pension amounts, so the ability to work and contribute past 65, or to stop earlier if health requires it, gives newcomers more room to manage long‑term risk and future plans.
Demographic and fiscal context
The November 10, 2025 reform reflects demographic concerns in Ottawa:
- Canada’s population is aging and life expectancy has risen.
- The share of residents in the traditional working‑age band is shrinking.
- Pension experts warn a smaller pool of workers supporting a larger group of retirees would raise costs for future taxpayers.
By encouraging people who can and want to keep working to remain in the labour force, the government aims to ease some pressure on pension budgets while respecting individual health, caregiving duties, and personal retirement goals.
Legal and community supports
- Legal specialists say the new rules strengthen older workers’ ability to challenge dismissals they believe are based mainly on age.
- While performance issues or restructuring can remain lawful reasons to end employment, a blanket policy forcing retirement at 65 is now much harder to defend.
- Immigrants less familiar with Canadian workplace culture or whose first language is not English or French may benefit from unions, settlement agencies, or community legal clinics explaining their protections.
- The shift may also affect family sponsorship plans if parents or grandparents plan to support themselves by working longer in Canada after arrival.
Immigration planning and attraction
Immigration planners note the change could make Canada more attractive to mid‑career professionals who want a gradual retirement:
- A skilled worker in their early 50s considering permanent residence might feel more comfortable relocating if they can combine part‑time work and CPP deferral later, rather than rushing to save before a fixed retirement date.
- Foreign nationals considering super visas or parent and grandparent sponsorships may see value in a system where older relatives can legally keep working if they wish during their first years in Canada.
Practical steps for individuals and advisers
Financial advisers often recommend these steps in light of the reform:
- Request CPP contribution statements regularly to check qualifying years built up in Canada.
- Compare projected benefits at ages 60, 65, and 70.
- Check whether pension income from a home country interacts with CPP or OAS under social security agreements.
- With this information, decide whether to:
- Target early retirement with modest payments, or
- Aim for deferred retirement and higher monthly income later.
Set a calendar reminder to request CPP contribution statements annually and review recent years to fine-tune your retirement timing strategy.
Limits and remaining challenges
The flexibility does not solve every problem:
- Some workers in low‑wage or precarious jobs may not be healthy enough to extend their careers, yet lack savings to cushion the lower CPP that comes with early retirement.
- Recent immigrants who arrived late in life might not have enough contribution years to receive large pensions, regardless of when they start CPP.
- Advocates warn that without stronger workplace protections, training supports, and affordable housing, some seniors may still face a choice between poor health and financial insecurity despite the new federal options.
Important: While the law gives people choices, the underlying economic and health inequalities mean outcomes will vary widely across individuals and communities.
Conclusion
November 10, 2025 marks a clear turning point in how Canada treats aging and work. Retirement is no longer fixed to a single date on the calendar but anchored in a spectrum from early CPP at 60 to deferred retirement at 70, with many paths in between. For citizens and immigrants alike, that spectrum can support very different life stories — from those who need to leave heavy labour early to those who love their careers and want to remain working. The law now backs their right to choose when and how to retire in Canada.
On November 10, 2025 Canada ended mandatory retirement at 65, allowing workers to claim CPP between ages 60 and 70. Early claiming reduces benefits roughly 0.6% per month before 65, while delaying increases benefits about 0.7% per month after 65; waiting until 70 yields about 142% of the 65 baseline. Employers must avoid age-based dismissals and focus on performance and accommodation. Immigrants can better tailor contribution strategies, and advisers recommend comparing projected benefits at 60, 65 and 70.
