If you’re starting to think about retirement, one of the first questions that often comes up is: When should I retire?
The best age to retire in Canada isn’t one-size-fits-all. The right timing depends on a mix of financial readiness, personal health, lifestyle goals, and how long you expect your retirement to last. Here’s a breakdown to help you start making an informed decision.
Retiring Early (Before 65)
More Time, Less Financial Wiggle Room
- You’ll need to draw on personal savings sooner
- CPP payments are reduced if you take them before 65
(by up to 36% at age 60) - OAS is not available until age 65, so you’ll need to bridge the gap
- Your money must last longer, increasing pressure on your investments
Retiring Later (After 65)
More Financial Stability, Less Flexibility
Delaying retirement into your late 60s or early 70s offers financial advantages:
- Higher CPP and OAS payments
- (CPP increases by ~8.4% for each year after 65, up to age 70)
- More time to grow savings and delay withdrawals
- Potentially more secure retirement with less risk of outliving your money
The tradeoff? Fewer active retirement years, and less flexibility to pursue certain goals.
How to Choose What’s Right for You
Your ideal retirement age depends on more than just your bank balance. Consider:
- Are you in good health?
- Do you enjoy your work, or are you feeling ready to move on?
- What are your lifestyle goals in retirement?
- Will you have support from a workplace pension?
A balanced decision reflects both your financial picture and personal values.
Example: Tina and Paul
Tina and Paul are both 63 and live in North Vancouver. Tina is ready to retire and spend more time with family. Paul enjoys his work and wants to continue until 68. After reviewing their income streams, they decided Tina would retire at 64 while Paul continues working. This approach gave them financial stability and let Tina start enjoying retirement on her terms.
The Best Age to Retire Is different for everyone
There’s no perfect retirement age — only the age that fits you. At Legassie Financial, we can walk you through how to evaluate your income, goals, and lifestyle to help you make a confident decision.
Whether you’re a few years away or just starting to plan, we can help you take the next step.
