Can I Retire at 62 in Canada?
Highly achievable. CPP is available now (with a reduction), and OAS arrives in 3 years. Your savings needs are significantly lower than retiring earlier.
Retiring at 62 with CPP available at a 21.6% reduction gives you $1,069/month — meaningfully higher than at 60 or 61, and only 3 years from full CPP. OAS is 3 years away. At 62, your savings target for a typical retirement lifestyle has dropped considerably compared to early FIRE ages, and the planning picture simplifies substantially.
Yes
CPP Available?
$13k/yr
At 65
OAS Available?
In 3 years
$13k
Govt Income/Year
CPP + OAS combined
28+
Yrs in Retirement
Planning to age 90+
CPP and OAS at Age 62
| Benefit | At Age 62 | At Age 65 | At Age 70 (max) |
|---|---|---|---|
| CPP (maximum earner) | $1070/mo | $1,364/mo | $1,938/mo (+42%) |
| OAS | Not eligible | $708/mo | $962/mo (+36%) |
| Combined Annual | $12,838/yr | $24,864/yr | $35,400/yr |
How Much Do You Need to Retire at 62?
Estimates use 4% safe withdrawal rate. Government income: $12,838/year from CPP+OAS.
| Annual Spending | Govt Income | Savings Gap / yr | Savings Needed (4% rule) |
|---|---|---|---|
| $40,000 | $12,838 | $27,162 | $679k |
| $60,000 | $12,838 | $47,162 | $1.2M |
| $80,000 | $12,838 | $67,162 | $1.7M |
| $100,000 | $12,838 | $87,162 | $2.2M |
* Assumes home is paid off. Savings needed increase if carrying a mortgage or if retirement begins before CPP/OAS eligibility.
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Enter your CPP estimate, savings, pension, and spending to see your exact retirement picture
Key Considerations at Age 62
- Taking CPP at 62: permanent 22% reduction vs. waiting to 65 for full $1,364/mo
- OAS arrives in 3 years — a short, manageable bridge period
- Consider drawing RRSP now (at potentially lower rates) before CPP+OAS push you into higher brackets later
- Spousal pension income splitting (post-65) is a key tax strategy — plan ahead with your spouse
- RRIF conversion not required until 71 — RRSP keeps compounding tax-free until mandatory conversion
What Makes Retiring at 62 Different
Age 62 sits in an interesting zone: most financial planning software starts flagging retirement as "comfortably achievable" at this age for anyone with a paid-off home and $700,000+. The 3-year bridge to OAS is short enough to model with high confidence, CPP income is now substantial, and your portfolio only needs to produce 25–28 years of income (to age 90). For many Canadians, 62 is when "can I afford to retire?" becomes "when do I actually want to stop working?"
Your Retirement Timeline from Age 62
Age 65 (3 yrs) — OAS available at 65 ($708/mo)
Age 65 (3 yrs) — Full CPP + OAS both available at 65
Age 70 (8 yrs) — Maximum CPP & OAS if deferred to 70 ($1,938/mo CPP + $962/mo OAS)
Age 71 (9 yrs) — RRSP converts to RRIF — mandatory withdrawals begin at 71
Age 82 (20 yrs) — Average Canadian life expectancy: men ~80, women ~84
Age 90 (28 yrs) — Conservative planning horizon: age 90 (28 years of retirement income needed)
Compare Retirement Ages
Frequently Asked Questions
How much do I need to retire at 62 in Canada?
For a $60,000/year lifestyle, you need approximately $1.2M in savings (after government benefits of $12,838/year). For $80,000/year, about $1.7M. These estimates use the 4% safe withdrawal rate and assume average CPP — your actual CPP may be higher or lower based on contribution history.
Should I take CPP at 62 or wait until 65?
Taking CPP at 62 means a permanent 22% reduction ($1070/mo). Waiting to 65 gives $1,364/mo. The break-even is roughly age 74 — if you expect to live past 74, waiting is mathematically better. But if you need income now, the guaranteed payment may reduce portfolio drawdown risk.
How long does my money need to last at 62?
Planning to age 90, your money needs to last 28 years. For greater security, plan to 95 — that's 33 years. Canadian women live to 84 on average; men to 80. But individual longevity varies enormously. Planning for a longer retirement is always the safer assumption.
What is the CPP 'general drop-out' provision and how does it affect a 62-year-old?
The CPP general drop-out provision automatically removes your lowest-earning years from the CPP calculation — typically 17% of your contribution years (about 8 years for most people). This protects retirees who had low-income years from being penalized. If you retire at 62, the drop-out provision partially offsets the years you stop contributing. Your actual CPP benefit will depend on your complete contribution history — use the My Service Canada Account to see your personalized estimate.
I'm 62 with a paid-off home worth $900,000. Should I factor home equity into my retirement plan?
Yes, but carefully. Your home equity is not liquid retirement income — you'd need to sell, downsize, or use a HELOC/reverse mortgage to access it. Some retirees plan a deliberate downsizing at 65–70 (selling the family home and moving to a smaller property or condo) and treat the freed equity as a retirement top-up. The risk: real estate prices can fall, and the proceeds may be needed for long-term care later. Don't rely on home equity as your primary retirement income source.
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- CPP at 60 vs 65 vs 70 — Break-Even Analysis
- When to Take CPP — Timing Strategy Guide
- TFSA vs RRSP — Which Wins for Your Situation?
- Optimal Retirement Withdrawal Order
- Can I Retire at 61 in Canada?
- Can I Retire at 63 in Canada?
- Retirement Savings Benchmarks by Age
- Early Retirement in Canada — Complete Guide
Next Steps
- 1Run your personalized retirement calculation
Enter your CPP estimate, savings, and spending
- 2Compare CPP timing scenarios
See how CPP timing affects your lifetime income
- 3Plan your drawdown sequence
Decide which accounts to draw from first