The Best Age to Retire in Canada

Retirement is something we all look forward to throughout our careers. Finally, stop working full time, living on our pension and savings, and spending our time doing what we like must be nice. But where should we put this stop sign in our life? When is the day that we are determined to retire and enjoy our hobbies? What age is best for retirement in Canada? As you can guess, there is no definite answer to some of these questions. Certainly, we cannot give you a date you can mark on your calendar and retire when it comes. However, we can give you information that will help you decide what is best for you and when you should retire, taking your life circumstances, age, and health into account. This article will tell you everything you need to know about retirement and the right time for it.

The Best Age to Retire for Health

Health is a super important factor when considering your years of retirement. Many people mistakenly extend their working years to the point that they have little energy left, and their health condition does not allow them to live the way they originally planned to. We all want to know how to enjoy life after retirement, but first, we should make sure we are physically and mentally prepared for living as a retiree. That is why, with regards to health conditions, there is a certain age limit after which it is best not to overwork yourself. And the age which sets the limit might be different for men and women.

People often retire around 65 or 66; however, if you love your job, you may not be ready to retire at 66 or 67. As long as you are healthy and able to work, you may want to continue working.

What Is the Best Age to Retire for a Woman?

Right now, the average age of retirement for women is 62. Since the average retirement age in Canada is 65, retiring before reaching that age can give you a few extra years to adapt to life after retirement. While Canadians are not obligated to retire at 65, most prefer to retire before reaching this age. Since most women prefer retiring at 62, you will probably be fine retiring at the same age.

Best Age to Retire in Canada

What Is the Best Age to Retire for a Man?

Normally, men retire at 64. Some might argue that retiring at such an age might be late. Yet when you notice that most people in Canada retire between the ages of 60 and 70, 64 seems like a logical choice. Not to mention that with the medical advancements in the recent decades, people are living longer. When you are 64, you still have many years left to experience the post-retirement life. Also, most men seem to think they can save enough for life after retirement until 64.

How Many Hours Can I Work After Retirement?

There is no maximum legal number of hours set in stone for working after retirement. But the standard working hours are 40 hours a week. But this is only generally true since the standard working hours after which you get paid for working overtime depend on the industry you work in. In most cases, you are not legally allowed to work for more than 48 hours a week without a permit.

What Is the Age of Retirement in Canada?

The standard age for retirement and starting your pension plan is 65. However, you can plan to receive your pension from the government anywhere between 60 and 70. In other words, to qualify for receiving CPP (The Canada Pension Plan), you have got to be at least 60 years old.

The maximum amount of monthly income you can receive as a retiree reaches its limit at the age of 70. So from 70 onwards, your pension will not increase based on your age. That is why there is no use postponing your pension plan after you turn 70 years old.

Once again, these ages and numbers are exclusive to Canada. You may find things completely different if you move to another country since the best age to retire in the USA is not the same as Canada.

Best Age to Retire in Canada

Benefits of Working After Retirement

Working after retirement can have many reasons. A simple reason is a need for money. True, knowing a few tips for saving money after retirement can save you a lot of trouble. Hardships are for everyone, so it is natural to feel that you need to undertake a job and secure your livelihood. Another reason for returning to work after retirement can be the significant amount of free time. After spending your years at your full-time job for at least eight hours a day, things can get a little bit boring if you have not thought your hobbies and plans for retirement through. So, you would feel the need to fill up your days with work again. Or, you may love your job. And when someone loves their job, their age should not stand in their way.

According to IRS rules on working after retirement, there are two different possibilities for working again. You either work for the same employer, or you decide to work for someone else.

When you change employers after retirement, you receive your retirement benefits from one person and work for another person. This way, no obstacle stands in your way, and your retirement accounts remain unchanged. Moreover, you can contribute to a new retirement plan for your new job while receiving benefits from your previous employer. This extra pension payment can help you a lot once you stop working at your second job.

Starting your own business also is no problem after retirement. You are allowed to receive retirement benefits from your previous employer and focus on your own business.

You may not be able to collect pension payments if you are hired once again by the same employer you worked for before retiring.

Best Age to Retire in Canada

Working after retirement has other advantages too. If you keep working while you are on your pension plan and are still in your early 60s (60-65), you need to keep paying contributions to the CPP. At first, this sounds like something you would want to ignore, but you might change your mind when you realize these contributions go into your post-retirement benefits (PRB). As a result, once you stop working again, your pension increases considerably.

When you continue to work after retirement, you are financially more stable. You worry less about the high costs of living and medical care. Also, people who work after they are retired stay in touch with society. Therefore, they socialize more and decrease their chances of feeling lonely and isolated, which is a severe issue with seniors.

Once you consider all the benefits of working again, the idea starts to become more attractive. A part-time job that does not take all your time or starting your ever-wanted business sure makes you feel good. Ideally, of course, you should have enough time to enjoy your days and spend your free time doing what you like.


As much as it would make matters easier, no specific age limit guarantees a good retirement. Retirement is a personal decision you have to make while paying attention to your health, life, and interests. However, one thing is certain. Retiring too early requires a considerable amount of saving and can be tiresome since most people your age, including your family and friends, work. On the other hand, retiring too late leaves you no energy or motivation to explore the post-retirement life thoroughly. So what you need to do is consider every aspect of your life carefully and find out at what age retirement is best for you.

Source IRS Government of Canada Official Website Wealth awesome
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13 days ago

My son keeps talking about saving most of his income and retiring at 40. Do you think I should stop him and advise him to wait until the age he can collect his CPP? I’m worried he might have a hard time in the future if he retires too early.

11 days ago

I’m 63, and I’m getting retired next year. I can’t wait for my retirement. It feels like it’s the first time I’m free! Unless except for the five or six first years of my life. But the thing is, as much as I’m excited about my retirement, I’m a little scared. What will I do? I’m not worried about finance, but I sometimes think my job is my life.

4 days ago

I’m 65, and I retired four years ago. After retirement, I started a part-time job at the local library, mostly because I have loved working at libraries since I was a child. It was better than my former job (not financially), I met new people of all ages. I miss that. Now I’m too scared to meet new people, or even leave my house.

3 days ago

I agree that the time to retire depends on our personal life and our condition. But I still think it’s better if you can save enough money to go through retirement with a part-time job that doesn’t take up all your time and lets you enjoy life. I was unlucky, so I was stuck with a 9-to-5 job until I was 62. I kind of regret not retiring sooner, but it was the only choice I had. By the time I started thinking about saving for retirement, it was already too late.

1 day ago

I think there is no “best age for retire” for a workaholic person like me.