Canada Retirement Age 2030- Will You Work Until 67? Full Details Here

The idea of retirement in Canada is changing quickly. With government discussions underway, many people are asking: Will the retirement age increase from 65 to 67 by 2030?

This question matters because it affects how long Canadians work, how much they save, and when they can finally enjoy their retirement years.

As 2025 becomes an important year for pension reform, it’s important to understand why changes are being discussed, what proposals are on the table, and how these updates might impact your future.

Why Is the Retirement Age Under Review?

Canada’s pension system is facing big challenges. By 2030, more than 20% of Canadians will be over the age of 65. This means the Canada Pension Plan (CPP) and Old Age Security (OAS) will have to support more people for a longer time.

At the same time, Canadians are living longer. With rising inflation, healthcare costs, and housing expenses, many seniors continue working past 65 just to make ends meet. To make sure pensions remain sustainable, the government is reviewing major reforms.

Proposed Pension Withdrawal Policy Updates 2025

So far, no official law has been passed. However, policy proposals in 2025 suggest important updates, such as:

• Raising the retirement age from 65 to 67 by 2030
• Allowing partial CPP withdrawals from age 60
• Higher CPP contributions from top-income earners
• Bigger pension bonuses for delaying retirement
• Expanded tax credits for seniors who work after 65

These fall under the Pension Withdrawal Policy Updates 2025 framework.

Key Policy Shifts at a Glance

Policy Proposal	Current Status	Proposed Change	Who Is Affected
Retirement Age	65	Increase to 67 by 2030	Workers under 60
Partial Pension Withdrawal	Allowed from 60	New flexible incentives	Early retirees
CPP for High-Income Earners	Flat contributions	Tiered increases	Top income brackets
Pension Deferral Bonuses	Optional	Higher bonus rates	Workers over 65
Tax Credits for Seniors	Limited	Expanded eligibility	Seniors working past 65

Public Reaction

Supporters believe raising the retirement age will keep pensions sustainable and reward those who continue working. Many urban professionals welcome this change since it could mean higher benefits later.

But critics, including groups like CARP, warn that the policy could hurt low-income seniors, people in physically demanding jobs, and those in poor health who may not be able to work until 67.

Parliamentary Review

Right now, these proposals are still under Parliamentary review. Committees are debating, and a possible bill may be introduced by the end of 2025. Until then, nothing is confirmed.

What These Changes Could Mean for You

• Ages 60–64: May face delays in receiving full benefits but could use early withdrawals and flexible work incentives.
• Current retirees: Likely won’t be affected much, though benefit indexing could change slightly.
• Under 40: Could face higher contributions and a new retirement age of 67.

How to Prepare for a Changing Retirement System

If these changes go through, Canadians should start planning early. Here’s what you can do:

• Keep updated with Service Canada and CRA announcements.
• Strengthen private savings through RRSPs and TFSAs.
• Plan for a longer retirement, as many people live into their 90s.
• Talk to a financial advisor to update your savings strategy.

Canada has not officially raised the retirement age to 67 yet, but all signs suggest the government is moving in that direction. For younger workers, this could mean working longer and saving more.

For seniors, changes may affect how benefits are received. The best way to handle this uncertainty is to stay informed, save smartly, and prepare for a longer financial journey into retirement.

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