Can I Retire at 68 in Canada?
Absolutely — and your patience has paid off. Deferring CPP and OAS has permanently increased your monthly income by 25% (CPP) and 22% (OAS), meaning you need far less capital to retire comfortably.
Retiring at 68 with 3 years of deferral means CPP at $1,706/month (+25.2%) and OAS at $836/month (+18%), for a combined $30,504/year — more than $5,600/year above the age-65 baseline. At 68, you're also just 3 years from the mandatory RRIF conversion at 71, making drawdown sequencing a pressing priority.
Yes
CPP Available?
$21k/yr
Yes
OAS Available?
$10k/yr
$31k
Govt Income/Year
CPP + OAS combined
22+
Yrs in Retirement
Planning to age 90+
CPP and OAS at Age 68
| Benefit | At Age 68 | At Age 65 | At Age 70 (max) |
|---|---|---|---|
| CPP (maximum earner) | $1708/mo | $1,364/mo | $1,938/mo (+42%) |
| OAS | $861/mo | $708/mo | $962/mo (+36%) |
| Combined Annual | $30,828/yr | $24,864/yr | $35,400/yr |
How Much Do You Need to Retire at 68?
Estimates use 4% safe withdrawal rate. Government income: $30,828/year from CPP+OAS.
| Annual Spending | Govt Income | Savings Gap / yr | Savings Needed (4% rule) |
|---|---|---|---|
| $40,000 | $30,828 | $9,172 | $229k |
| $60,000 | $30,828 | $29,172 | $729k |
| $80,000 | $30,828 | $49,172 | $1.2M |
| $100,000 | $30,828 | $69,172 | $1.7M |
* 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 68
- CPP deferral: +25% for life vs. taking at 65 — equivalent to ~$4,127/year more
- OAS deferral: +22% for life — CPP break-even vs. age 65 is typically around age 82–84
- Bridge the deferral gap using TFSA withdrawals (0% tax) before CPP/OAS kick in
- RRSP meltdown strategy: draw RRSP while deferring CPP/OAS — may reduce your lifetime tax bill significantly
- RRIF mandatory minimum withdrawals begin at 71 — the sooner you plan the drawdown sequence, the better
What Makes Retiring at 68 Different
The planning urgency at 68 is less about whether you can retire and more about optimizing the 3-year window before mandatory RRIF minimums begin. RRIF minimums at 71 start at 5.28% of the account balance — on a $1M RRIF, that's $52,800/year in forced taxable income. With CPP and OAS already providing $30,000+/year, large RRIF withdrawals could push you into high tax brackets. Drawing down your RRSP strategically between 68 and 71 — keeping income in the lowest possible bracket — can save meaningfully on lifetime taxes.
Your Retirement Timeline from Age 68
Age 70 (2 yrs) — Maximum CPP & OAS if deferred to 70 ($1,938/mo CPP + $962/mo OAS)
Age 71 (3 yrs) — RRSP converts to RRIF — mandatory withdrawals begin at 71
Age 82 (14 yrs) — Average Canadian life expectancy: men ~80, women ~84
Age 90 (22 yrs) — Conservative planning horizon: age 90 (22 years of retirement income needed)
Compare Retirement Ages
Frequently Asked Questions
How much do I need to retire at 68 in Canada?
For a $60,000/year lifestyle, you need approximately $729k in savings (after government benefits of $30,828/year). For $80,000/year, about $1.2M. 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 and OAS now or keep deferring?
Every additional year you defer CPP earns 8.4% more for life; OAS earns 7.2% more. The CPP break-even vs. taking at 65 is typically age 82–84. If you're in good health with other income sources, continuing to defer is usually worthwhile.
How long does my money need to last at 68?
Planning to age 90, your money needs to last 22 years. For greater security, plan to 95 — that's 27 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 are the RRIF minimum withdrawal rates and when do they start?
RRIF mandatory minimum withdrawals begin at age 71 (December 31 of the year you turn 71). The minimum rate is 5.28% at 71 and increases each year (5.40% at 72, 5.53% at 73, and so on, reaching 20% by age 95+). On a $1M RRIF, the minimum at 71 is $52,800. If you're 68 with large RRSP savings, drawing them down to a comfortable RRIF size before 71 — and routing to TFSA — can reduce future forced income and OAS clawback risk.
Can I collect CPP while still working part-time at 68?
Yes — you can collect CPP and continue working at any age after 60. If you're working while receiving CPP (before age 70), you and your employer continue making CPP contributions, which accumulate as a Post-Retirement Benefit (PRB) and increase your monthly CPP payment the following year. After 70, CPP contributions while working are optional (you can opt out). The PRB is generally small but worthwhile if you're already paying into the system.
Related Calculators
Related Articles
- 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 67 in Canada?
- Can I Retire at 69 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