Posted by In 2025, many Canadian seniors are opting to remain in the workforce beyond the traditional retirement age of 65.
With rising costs of living and a desire to stay active, working while receiving Canada Pension Plan (CPP) and Old Age Security (OAS) benefits is becoming more common.
However, it’s crucial to understand how employment at age 70 interacts with these government benefits and the impact it might have on overall retirement income.
Understanding CPP and OAS at Age 70
Both CPP and OAS are foundational to Canada’s retirement system. While these programs are designed to support retirees, they also offer flexibility for those choosing to work later in life.
| Program | Details |
|---|---|
| CPP Start Age | Can begin at 60 (reduced), 65 (standard), or 70 (maximum) |
| OAS Start Age | Starts at 65 for eligible residents |
| Work Allowed? | Yes, you can work and still receive both Canada Pension Plan and OAS |
| CPP Contributions | Mandatory until 70; optional after 65 but stop at 70 |
| OAS Clawback | Starts when net income exceeds government-set thresholds |
| Taxable? | Both Canada Pension Plan and OAS are taxable benefits |
Can You Work and Still Receive CPP at Age 70?
Yes. CPP payments will continue at age 70 regardless of work status. In fact, if you worked and contributed to CPP between ages 65 and 70, you’re eligible for Post-Retirement Benefits (PRB). These are extra monthly payments added to your regular Canada Pension Plan pension.
Once a person turns 70, Canada Pension Plan contributions are no longer required, even if still employed. The pension continues unaffected, and there’s no income limit that could trigger a reduction.
READ MORE: $2,250 OAS Payment Hits Accounts This Week – Are You Eligible For The April 2025 Boost?
Can You Work While Receiving OAS at Age 70?
Yes, you can. However, unlike Canada Pension Plan, OAS is subject to income-based clawback rules, officially known as the OAS Recovery Tax.
If your net world income surpasses a certain threshold, a portion—or even all—of your OAS payment might need to be repaid.
OAS Clawback Thresholds for Recovery Tax:
| Period | Income Year | Age Group | Min Income Threshold | Max Income Threshold |
|---|---|---|---|---|
| July 2024 – June 2025 | 2023 | Age 65–74 | $86,912 | $142,609 |
| July 2025 – June 2026 | 2024 | Age 75+ | $90,997 | $148,451 |
| July 2026 – June 2027 | 2025 | All seniors | $93,454 | $151,668 |
If earnings exceed the minimum threshold, 15% of the difference must be repaid.
Example:
A 70-year-old earning $100,000 in 2023 would have:
$100,000 – $86,912 = $13,088
15% of $13,088 = $1,963.20
So, $1,963.20 would be deducted from their OAS between July 2024 – June 2025.
Benefits of Delaying CPP Until 70
Choosing to delay Canada Pension Plan until age 70 leads to a higher monthly payout. For each month of delay after age 65, your CPP increases by 0.7%, up to a maximum increase of 42% at age 70.
This provides a significant financial advantage for seniors still capable and willing to work during those years.
Impact of Working at Age 70
- No Penalty on Canada Pension Plan for working income after age 70
- CPP Contributions Stop at 70
- OAS Payments Might Be Reduced if income exceeds thresholds
- Additional Income + Government Benefits can boost retirement funds
- Seniors can still file taxes and claim eligible credits to reduce liabilities
Working at age 70 in Canada is entirely possible without losing out on CPP or OAS benefits—provided retirees understand the rules and thresholds.
While Canada Pension Plan remains unaffected by employment income, OAS is subject to recovery tax once earnings cross the prescribed limit.
Seniors should plan strategically, consult professionals if needed, and take advantage of the benefits while maximizing income during their golden years.
FAQs
Can a person still receive full CPP and OAS while working after 70?
Yes, Canada Pension Plan is not reduced by work income, and OAS is only affected if income exceeds the annual threshold.
Do CPP contributions continue past age 70?
No. Canada Pension Plan contributions are mandatory up to age 65, optional until 70, and stop completely after 70.
How is the OAS clawback calculated?
If income exceeds the threshold, 15% of the excess is deducted from OAS payments during the corresponding recovery period.