Goodbye To Retirement At 65 For Canadian Seniors – Check New Age & Rules for Seniors

The recent news has stirred recent news among the elderly citizens in Canada. Retirement benefits will be ending said at the age of 65 and the retirement age will increase to 67. Plan benefits such as Canada Pension Plan (CPP) and Old Age Security (OAS) are now being paid out at the age of 65. Nevertheless, this evolving debate has been a cause of concern to this group of seniors who are only dependent on such plans.

Uncertainty surrounding retirement

A significant number of the elderly citizens prepare their finances ahead of time. They do not think that they will start getting pensions, security, and other benefits at 65. They started to raise concerns when the retirement age was reportedly raised to 67 years and how their savings were going to add up.

Nonetheless, Canada Revenue Agency (CRA) or any other federal agency has not issued an official statement concerning this change yet. This is pure guess and supposition.

How do retirement benefits work in Canada?

The Canadian government primarily supports senior citizens through two programs:

1. Old Age Security (OAS) – This begins at age 65 and offers no flexibility.
2. Canada Pension Plan (CPP) – This is more flexible for citizens. One can begin receiving benefits at age 60, or wait until age 70 to receive higher payments.

This means that the CPP is more flexible, while the OAS is available only at a certain age. This is why the news of raising the retirement age to 67 will primarily impact those who rely on the OAS.

What will be the impact of increasing the retirement age from 65 to 67?

If this change is implemented, then:

• Seniors will have to wait an additional two years.
• CPP recipients will not be affected significantly, as they can claim earlier or later.
• OAS and GIS (Guaranteed Income Supplement) recipients will be directly affected.
• A two-year pension freeze could disrupt the financial plans of many families.

But it’s important to note that these are only estimates. No official announcement has been made yet.

Role of the CRA and the Government of Canada

The CRA and the federal government are responsible for providing permanent income security to citizens. This is why schemes like the CPP and OAS have been implemented. While the CPP is contribution-based for retirement, the OAS guarantees citizens a fixed income upon reaching retirement age.

No official date or plan has been announced by the CRA yet, making it clear that this change is only part of discussions.

Will the retirement age really change?

• So far, these are just rumors and projections.
• The flexible CPP system will remain the same.
• There is discussion about raising the OAS age from 65 to 67, but no concrete proposal has emerged.
• Senior citizens are advised not to rely on news circulating online and to only read government websites or official notices.

Conclusion

When Canada announced that it would scrap its retirement age of 65 and increase it to 67 years of age, the seniors have been worried about it, in particular those who are highly dependent on their Old Age Security (OAS). It should be emphasized, though, that both the Canadian government and the CRA have not made any official statement on that. Thus, citizens are not to follow rumors and keep their finances flexible.

Provided that this change would take place in the future, it would certainly make a significant difference in the lives of millions of Canadian seniors. Nevertheless, at this point the 65 year retirement regulation is still there and nothing has been put in place.

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