Can I Retire at 60 in Canada?

Retiring at 60: What You Need

At 60, you need to bridge a 5-year gap until OAS begins and manage the 36% CPP reduction if you take CPP immediately. Most financial planners recommend having 20–25 times your annual expenses saved.

For $70,000/year spending, that's $1.4–$1.75 million. Your TFSA and non-registered accounts become critical at this stage.

CPP at 60: The Tradeoffs

Taking CPP at 60 means a 36% reduction from the age-65 amount. If your CPP at 65 would be $1,000/month, you'd receive $640/month at 60.

The break-even age (60 vs 65) is typically around age 74. If you're healthy and expect to live past 74, delaying CPP is usually better — but individual circumstances vary greatly.

The Income Bridge Strategy

Many advisors recommend the 'income bridge' strategy: withdraw from RRSP between 60–65 (or 70), keeping income low, to delay CPP and maximize the government benefit. This requires careful tax planning but can significantly increase lifetime income.

Health Coverage After 60

One underestimated cost at 60 is losing employer health benefits. Provincial health plans cover basics, but dental, vision, and prescription coverage must be replaced. Budget $3,000–$8,000/year for a couple, or consider group retirement health plans through professional associations.