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Retirement Age in Ontario – Myths vs. Facts
In Ontario, the topic of retirement age continues to generate confusion, especially as societal attitudes toward work, age, and retirement evolve. Many people still believe in a “mandatory retirement age” or assume that employees are required to stop working at 65.
This article answers some of the most commonly asked questions about retirement age, separating myths from facts to help both workers and organizations understand their legal rights and obligations.
Is There a Mandatory Retirement Age in Ontario?
Myth: Everyone must retire at 65.
Fact: In Ontario, there is no mandatory retirement age for most workers. The Ontario Human Rights Code prohibits age discrimination in employment, which includes forced retirement based solely on age. This means that in most cases, employers cannot compel an employee to retire just because they turn 65.
There are limited exceptions where a mandatory retirement age is permitted by law, typically tied to bona fide occupational requirements (BFOR), for example, in certain safety-sensitive professions, such as firefighting or policing, where physical capabilities are critical to job performance.
Can an Employer Suggest or Pressure an Employee to Retire?
Myth: Employers can suggest retirement when someone reaches a certain age.
Fact: Employers must be careful not to pressure or suggest that an employee should retire, as this could amount to age discrimination or constructive dismissal. An employee has the right to decide when to retire, and any communication from the employer that implies otherwise could give rise to legal risks.
As Christopher Achkar, Founder of Achkar Law, explains:
“Age alone should never be the determining factor in discussions about retirement. Employers and employees alike need to understand that retirement is a personal decision, and any attempt to pressure or suggest retirement based on age could expose organizations to significant legal liability.”
Is There an Age When Pension Benefits Must Start?
Myth: Employees must retire to start receiving pension benefits.
Fact: Employees can begin receiving the Canada Pension Plan (CPP) as early as age 60 or choose to delay until age 70 for increased payments. However, there is no legal requirement to stop working to access these benefits. Many Ontarians choose to work beyond traditional retirement ages while receiving pension income.
Private workplace pensions may have their own specific rules, but they cannot force retirement solely based on age without legal justification.
Can Employees Be Fired After a Certain Age?
Myth: Employers can legally terminate older workers because they are approaching retirement age.
Fact: Termination based on age alone is prohibited. Any termination must be for a legally defensible reason, such as performance, restructuring, or other legitimate business considerations, not the employee’s age. Inappropriate terminations could lead to claims under the Ontario Human Rights Code and wrongful dismissal lawsuits.
Employers must also ensure that termination packages, severance pay, and notice periods comply with both the Employment Standards Act, 2000 (ESA) and the common law.
What About Workplace Benefits for Older Employees?
Myth: Employers can stop providing benefits to employees after they reach 65.
Fact: Ontario law allows some benefit plans to limit or exclude coverage for employees 65 and over, provided the policy aligns with human rights legislation and employment standards. However, these exclusions must be carefully crafted, and employers should obtain legal advice to ensure that benefit limitations are legally permissible.
Retirement Planning: What Should Employers and Employees Do?
Whether you’re an employer or an employee, understanding your rights and obligations around retirement age is essential:
Employees should know they are not required to retire at any specific age and can continue working as long as they are able and willing.
Employers should review their policies and practices to ensure they are not inadvertently discriminating against employees based on age or encouraging retirement in an unlawful manner.
Final Thoughts
Retirement in Ontario is not what it once was. The notion of a fixed retirement age is outdated for most workplaces. Employers must proceed with caution when discussing retirement, while employees should feel empowered to make their own decisions without fear of being pushed out.
If you are dealing with workplace issues related to retirement, termination, or age discrimination, speak to a lawyer. At Achkar Law, we help both employees and organizations navigate Ontario’s employment laws with clarity and confidence.
→ Contact Achkar Law today for a confidential consultation.
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The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©
Workplace Law Topics: Unlawful Termination, Human Rights, Workplace Discrimination, Reasonable Accommodations, Employment Litigation.