In 2025, a growing number of Canadian seniors are choosing to stay in the workforce well beyond the traditional retirement age of 65. Whether driven by rising living costs, a desire to remain active, or simply a passion for work, many are blending employment income with retirement benefits such as the Canada Pension Plan (CPP) and Old Age Security (OAS).
But how does working at age 70 affect these government-provided benefits? Understanding the rules can help older Canadians make the most of their retirement income while continuing to earn.
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Understanding Your Retirement Benefits at Age 70
Canada Pension Plan (CPP) Overview
CPP is a contributory, earnings-based social insurance program that provides monthly payments to retirees. Here’s what to know at age 70:
- Start Age Options: You can start CPP as early as age 60 (with reduced payments), at 65 (standard), or delay to 70 (maximum benefit).
- Maximum Benefit Boost: Delaying to age 70 increases your monthly payout by 42% compared to taking it at 65.
- Post-Retirement Benefits (PRB): If you contributed between ages 65 and 70, you’ll receive additional monthly benefits even after turning 70.
- No Contributions After 70: Once you reach 70, CPP contributions stop, even if you’re still working.
Old Age Security (OAS) Overview
OAS is a non-contributory pension available to most Canadians starting at age 65, regardless of work history.
- Starts at Age 65: Payments begin automatically if you’ve applied and are eligible.
- Subject to Income-Based Clawback: High income earners may see their OAS reduced through the OAS Recovery Tax.
- Still Taxable: OAS is considered taxable income.
Can You Work While Receiving CPP at 70?
Absolutely. Working does not reduce your CPP payments in any way.
Here’s How It Works:
- CPP Continues Unaffected: Your monthly CPP benefit is fixed based on your contribution history and age you started it.
- No Earnings Cap: There is no income threshold that would reduce your CPP payments.
- No More Contributions: You no longer need to contribute to CPP after 70, regardless of employment status.
Can You Work While Receiving OAS at 70?
Yes—but with caution. While OAS payments continue, your income level determines how much you get to keep.
OAS Clawback: What You Need to Know
The OAS Recovery Tax reduces your benefits if your income surpasses a specific threshold. Here are the current clawback limits:
OAS Clawback Thresholds by Year
| Period | Income Year | Age Group | Min Threshold | Max Threshold |
|---|---|---|---|---|
| July 2024 – June 2025 | 2023 | 65–74 | $86,912 | $142,609 |
| July 2025 – June 2026 | 2024 | 75+ | $90,997 | $148,451 |
| July 2026 – June 2027 | 2025 | All Ages | $93,454 | $151,668 |
How It Works:
- For every dollar your net income exceeds the minimum threshold, 15% is clawed back.
Example: A 70-year-old earning $100,000 in 2023 would owe:
- $100,000 – $86,912 = $13,088
- 15% of $13,088 = $1,963.20 That amount would be deducted from OAS payments during the July 2024 – June 2025 period.
Benefits of Delaying CPP Until Age 70
Seniors who delay receiving CPP past age 65 benefit from a substantial increase in monthly payments.
Key Advantages:
- Up to 42% Higher Monthly Payment: Each month of delay after 65 increases the payment by 0.7%.
- Long-Term Income Boost: If you live a long life and continue working, delaying CPP can significantly improve your retirement income.
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How Employment at Age 70 Affects Your Retirement Income
The Good News:
- CPP Is Unaffected: Continue working without worrying about reductions to your Canada Pension Plan.
- Contributions Stop at 70: No more payroll deductions for CPP.
- Opportunity to Maximize Income: By combining a salary with government benefits, many seniors increase their disposable income.
The Trade-Off:
- OAS Clawback Risk: Higher income may trigger a partial or full OAS clawback.
- Tax Implications: With added income, seniors may move into higher tax brackets, affecting net income.
Strategic Tips for Seniors Working at 70
- Plan Your Income: If possible, spread out large income events or delay RRSP withdrawals to avoid OAS clawbacks.
- Use Tax Credits: Seniors are eligible for various tax credits to reduce their tax liability.
- Consult a Financial Advisor: A retirement planning professional can help you optimize your income strategy.
Final Thoughts: Staying Employed Without Losing Your Benefits
Working at 70 in Canada can be financially rewarding and personally fulfilling. Understanding how employment interacts with CPP and OAS allows seniors to maximize their income without unexpected penalties.
With smart planning, older Canadians can continue to enjoy both a steady paycheck and their well-earned government benefits.