When Do North Americans Actually Retire? Comparing the US and Canada in 2024

The question of retirement age has become increasingly complex in both the United States and Canada. Political discussions around Social Security reform and pension sustainability have raised concerns among workers about when—and whether—they can realistically step away from their careers.

The Retirement Reality Across North America

Both countries have seen workers extending their time in the workforce. In the US, most people leave their jobs somewhere between ages 64 and 66, while Canada reports a similar pattern with an average exit age hovering around 65. But these numbers mask a more nuanced reality: retirement timing depends heavily on personal circumstances like health, financial stability, and professional satisfaction.

Interestingly, one significant factor driving later retirement in the US is that college-educated workers tend to remain employed longer than their peers. This isn’t necessarily about financial pressure—these workers often report better health and more fulfilling career prospects, making continued work appealing rather than something forced upon them.

Understanding Social Security: When to Claim Matters

In the United States, the earliest claim age for Social Security benefits is 62, though the monthly payments are significantly reduced at that point. Workers born in 1960 or later reach full retirement age at 67, when they can receive their complete benefit entitlements. The typical monthly payment hovers around $1,800, though this varies considerably based on earnings history and claim timing.

The key decision point: claiming early versus waiting. Delay your claim, and your monthly payments grow substantially. This fundamental trade-off—immediate but smaller payments versus larger future payments—shapes retirement planning for millions of Americans.

How Canada’s Pension System Compares

Canada’s approach through the Canada Pension Plan operates with similar flexibility. Workers can begin collecting CPP retirement benefits as early as 60 or wait until age 70, with 65 serving as the standard claim age. The average monthly payment at age 65 is approximately $816.

The CPP calculation factors in three key elements: your claim age, your total contribution history and duration, and your average earnings throughout your working years. Valid contributions include employment earnings in Canada or credits transferred from a former spouse or common-law partner.

Like Social Security, the CPP rewards delayed claiming. Earlier claims result in reduced monthly benefits, while postponing to age 70 significantly increases your pension amount.

What Shapes Your Personal Retirement Timeline

The decision to retire isn’t simply about reaching a certain age. Multiple variables converge: your health status, accumulated savings, career satisfaction, family circumstances, and confidence in government pension systems. Some workers aim for 62, others stretch toward 70. Some find flexibility by working part-time before fully retiring.

Both nations’ retirement systems offer this flexibility intentionally—recognizing that one-size-fits-all policies don’t serve diverse populations. Your optimal retirement age depends on your unique financial position, longevity expectations, and personal priorities rather than national averages alone.