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The Norm of 65: Age Of Retirement In Canada

The trend of postponing retirement is on the rise. With higher life expectancies leading to longer active lives, many Canadians are choosing to work longer. This choice carries a bunch of advantages, such as the ability to continue earning and the chance for retirement savings to further accumulate, culminating in a retirement that is both more financially secure and comfortable.

Which begs the question… is 65 still the best age to retire?

This shift prompts a reevaluation of the conventional wisdom regarding retirement age. For many years, 65 has been seen as the standard retirement milestone in numerous countries, including Canada, primarily because it aligns with eligibility for various benefits like the Old Age Security (OAS). However, with our economy in the state that it is now, there is a discernible pattern of Canadians deciding to work beyond this age.

The “Norm” of 65

Traditionally, age 65 has been perceived as the retirement age across many countries, Canada included. This is when Canadians become eligible to receive various benefits, such as the Old Age Security (OAS). However, as lifestyles and health trends evolve, so does the age at which Canadians opt for retirement.

Delaying Retirement (The New Trend!)

Increasing life expectancies in Canada mean longer, active lives. Consequently, many Canadians now choose to delay their retirement. Not only does this mean more years of income, but their pension benefits also see growth, providing a more comfortable nest egg for the later years.

A Glimpse into the Past

Historical data shows intriguing trends. The late 1970s saw Canadians retiring around the age of 65. However, the 1980s marked a significant dip, bringing the average retirement age below 64. Over the past two decades, women have consistently retired earlier than men, with their average retirement age hovering close to 60, while men have leaned towards 62-63.

Is 65 Still Your Retirement Age Goal?

Factors such as personal health, financial readiness, and even job satisfaction play critical roles in this decision.

The concept of retirement itself is also evolving. No longer is it seen as a definitive end to work life, but rather as a transition phase where one could pursue part-time work, volunteer opportunities, or even embark on a second career. This flexibility in defining retirement could mean that the best age to retire varies significantly from one individual to another.

The question of whether 65 remains the most suitable age to retire is now open to individual interpretation, influenced by personal circumstances and aspirations for life’s later chapters. I’d be happy to chat with you about it, schedule a virtual zoom call with me.

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