CanIRetireCanada.ca
Semi-Early
Age 63

Can I Retire at 63 in Canada?

Highly achievable. CPP is available now (with a reduction), and OAS arrives in 2 years. Your savings needs are significantly lower than retiring earlier.

Retiring at 63 gives you CPP at a 14.4% reduction ($1,168/month for a maximum earner), with OAS just 2 years away. At 63, you're close enough to traditional retirement age that your planning is primarily about optimizing timing — CPP now or at 65, RRSP drawdown sequence, and the OAS clawback threshold — rather than whether retirement is financially achievable.

Yes

CPP Available?

$14k/yr

At 65

OAS Available?

In 2 years

$14k

Govt Income/Year

CPP + OAS combined

27+

Yrs in Retirement

Planning to age 90+

CPP and OAS at Age 63

BenefitAt Age 63At Age 65At Age 70 (max)
CPP (maximum earner)$1168/mo$1,364/mo$1,938/mo (+42%)
OASNot eligible$708/mo$962/mo (+36%)
Combined Annual$14,017/yr$24,864/yr$35,400/yr
Note: CPP amounts above assume maximum contributions throughout your career. Most Canadians receive 60–80% of maximum. Check your My Service Canada Account for your personal CPP estimate.

How Much Do You Need to Retire at 63?

Estimates use 4% safe withdrawal rate. Government income: $14,017/year from CPP+OAS.

Annual SpendingGovt IncomeSavings Gap / yrSavings Needed (4% rule)
$40,000$14,017$25,983$650k
$60,000$14,017$45,983$1.1M
$80,000$14,017$65,983$1.6M
$100,000$14,017$85,983$2.1M

* Assumes home is paid off. Savings needed increase if carrying a mortgage or if retirement begins before CPP/OAS eligibility.

Get your personalized number

Enter your CPP estimate, savings, pension, and spending to see your exact retirement picture

Key Considerations at Age 63

  • Taking CPP at 63: permanent 14% reduction vs. waiting to 65 for full $1,364/mo
  • OAS arrives in 2 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 63 Different

With OAS just 2 years away, a 63-year-old retirement means your income picture becomes quite clear, quite quickly. The critical calculation at 63 is your "income layering" sequence: how to draw from RRSP, TFSA, and taxable accounts across ages 63–71 in a way that minimizes lifetime taxes. Drawing RRSP now (while income is relatively low) and waiting to take CPP at 65 is often the most tax-efficient path — but it depends on your specific account balances and spousal situation.

Your Retirement Timeline from Age 63

+2

Age 65 (2 yrs) — OAS available at 65 ($708/mo)

+2

Age 65 (2 yrs) — Full CPP + OAS both available at 65

+7

Age 70 (7 yrs) — Maximum CPP & OAS if deferred to 70 ($1,938/mo CPP + $962/mo OAS)

+8

Age 71 (8 yrs) — RRSP converts to RRIF — mandatory withdrawals begin at 71

+19

Age 82 (19 yrs) — Average Canadian life expectancy: men ~80, women ~84

+27

Age 90 (27 yrs) — Conservative planning horizon: age 90 (27 years of retirement income needed)

Compare Retirement Ages

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63
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65
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Frequently Asked Questions

How much do I need to retire at 63 in Canada?

For a $60,000/year lifestyle, you need approximately $1.1M in savings (after government benefits of $14,017/year). For $80,000/year, about $1.6M. 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 63 or wait until 65?

Taking CPP at 63 means a permanent 14% reduction ($1168/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 63?

Planning to age 90, your money needs to last 27 years. For greater security, plan to 95 — that's 32 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.

Should I convert my RRSP to a RRIF at 63 to start drawing income?

You can convert at any age — there's no minimum. If you need RRSP income at 63, you can either take withdrawals directly (RRSP withdrawals are taxable income) or convert to a RRIF (which has mandatory minimum withdrawals from age 71, but allows flexible draws before then). Many early retirees leave the RRSP in place and withdraw only what they need each year to stay in a low tax bracket, rather than converting to a RRIF early.

Will my CPP amount increase if I keep working part-time at 63?

Only if you make CPP contributions on your employment income. If you earn above the $3,500 basic exemption, you and your employer continue contributing to CPP — and those extra contributions increase your eventual benefit. However, the marginal increase from 1–2 more years of contributions after age 60 is small (typically $10–$40/month) unless your earnings are high. The CPP Post-Retirement Benefit (PRB) applies to contributions made while receiving CPP — so you can work, contribute, and still collect.

Next Steps

  1. 1
    Run your personalized retirement calculation

    Enter your CPP estimate, savings, and spending

  2. 2
    Compare CPP timing scenarios

    See how CPP timing affects your lifetime income

  3. 3
    Plan your drawdown sequence

    Decide which accounts to draw from first