Why Canadians Are Retiring Later, And What It Means for You

If you are 55 or older, you have probably noticed something: retirement does not look the same as it did for your parents. And you are not imagining it.

The numbers tell a clear story. In the late 1970s, the average Canadian retired around age 65. By the late 1990s, that number had dropped to about 61. But something happened along the way. The trend reversed. In 2025, the average retirement age hit 65.4 years, 66.2 for men and 64.5 for women.

So, what changed? And what does it mean for you? There is no single reason. A few different forces are at work.

Women's working lives have changed. Today's older women have spent much more of their lives in the workforce than previous generations. They have stronger pensions, more career experience, and often coordinate their retirement plans with their partners. That has shifted the average retirement age upward.

There are fewer younger workers. With lower birth rates and slower immigration, employers have fewer young people to hire. That means they are hanging on to experienced older workers longer,  and valuing the skills they bring.

Jobs are less physically demanding. Canada's economy has shifted toward service, professional, and knowledge-based work. In many of these jobs, experience and skill are assets that grow with age. You do not have to retire just because your body is tired.

We are living longer and healthier lives. If you are in your mid-60s today, you can expect another 20 to 30 years,  most of them in decent health. That changes the equation. Retirement is no longer a short breather before the end. It is a long chapter, and many people want it to be meaningful.

Retirement is becoming a process, not an event. More and more people are easing into retirement, working part-time, consulting, or shifting to self-employment rather than stopping work altogether. It is less "the day I left the office" and more "the years I figured out what was next."

Attitudes have shifted. Mandatory retirement is mostly gone. Employers and governments are paying more attention to age discrimination. That does not mean it has disappeared, but it is harder to force someone out just because of their age.

If you are 55 or older, these changes affect you in several ways.

First, the financial system was built for a different world. Most of Canada's retirement income programs were designed when retirement was shorter, workplace pensions were more common, and very few people worked past 65. That world no longer exists.

Second, retirement is not one-size-fits-all. Some people work longer because they want to,  they enjoy their work, find it meaningful, or want to stay engaged. Others work longer because they have to,  their savings are not enough, and they need the income.

Third, there are quirks in the system that can discourage you from working. For example, the Guaranteed Income Supplement (GIS) has earnings rules that can penalize low-income seniors who continue to work. That is something worth understanding if it applies to you.

The most important thing is to stay informed. Know what your options are. Understand how CPP, OAS, and GIS work. Talk to a financial advisor if you can. And do not assume that the retirement your parents had is the retirement you will have.

The good news is that you have more choices than earlier generations. You can work longer if you want to. You can ease into retirement gradually. You can stay engaged in meaningful work, paid or unpaid.

But the system is not always friendly to those choices. So pay attention, ask questions, and do not be afraid to advocate for yourself.

We are living longer. We are staying healthier. We are working differently. These are good things,  but they also mean the old rules no longer apply.

Your retirement does not have to look like your parents'. It should look like yours. And that means understanding the world as it is now, not as it used to be.

This article is based on an analysis by Peter Hicks, a policy adviser and former Assistant Deputy Minister with Social Development Canada, and John Stapleton, Social Policy, Ageing and Well-being Policy Fellow at the National Institute on Ageing. Their work highlights the need to rethink Canada's retirement income system for a new era.