{"id":570356,"date":"2026-07-05T17:50:19","date_gmt":"2026-07-05T17:50:19","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/570356\/"},"modified":"2026-07-05T17:50:19","modified_gmt":"2026-07-05T17:50:19","slug":"our-spreadsheet-says-were-ready-to-retire-at-60-but-are-we-what-every-canadian-needs-to-consider-first","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/570356\/","title":{"rendered":"Our spreadsheet says we\u2019re ready to retire at 60 \u2014 but are we? What every Canadian needs to consider first"},"content":{"rendered":"

\"Middle-aged<\/a> Middle-aged couple looking at paper and confused <\/p>\n

When Angela set a countdown timer on her phone for the day she’d hand in her notice \u2014 and her partner Matt did the same \u2014 it felt like a declaration. They’d done the work. The spreadsheet was airtight. Every investment accounted for, every projected expense mapped. Retirement at 59 and 60, respectively, was right on schedule. <\/p>\n

Yet as that day drew closer \u2014 now less than a year away \u2014 the confidence on paper wasn’t translating into confidence in their guts. <\/p>\n

While this particular situation is hypothetical, the dilemma at hand resonates deeply for Canadians. According to Statistics Canada (1), the average retirement age in Canada was 65.4 in 2025. But retiring early, as Angela and Matt plan to do, requires an extra layer of planning that a spreadsheet alone can’t capture. <\/p>\n

And according to BMO’s 2026 Retirement Survey (2), 36% of Canadians lack confidence in their ability to reach their retirement savings goals. Even those who’ve saved diligently can feel unsure about whether the math will hold up in real life. <\/p>\n

So, how can Angela and Matt \u2014 and the many Canadians in a similar position \u2014 know they’re truly ready to step back? <\/p>\n

Don’t Miss Set a clear goal early and keep tabs on it <\/p>\n

If early retirement is on your radar, it’s not something you can start planning for just a year or two before your target date. <\/p>\n

“You should start looking at your plan at least five to 10 years prior to your expected retirement age,” Domenick D’Andrea, co-founder of DanDarah Wealth Management, told Moneywise<\/a>. <\/p>\n

D’Andrea recommended reviewing your proposed retirement budget, debt obligations, any major expenses you expect during retirement and investment strategies that align with your risk tolerance. <\/p>\n

Based on your expected spending and anticipated investment returns, you can determine how large your nest egg needs to be. For Canadians retiring early, there’s an added layer of complexity: you may not be eligible to collect government benefits right away. <\/p>\n

The Canada Pension Plan (CPP) can be claimed as early as age 60, but doing so reduces monthly benefits permanently \u2014 by 0.6% for each month before age 65, up to a maximum reduction of 36%. Old Age Security (OAS) cannot begin before age 65 under any circumstances. This means Angela, at 59, and Matt, at 60, will have to face several years of relying entirely on personal savings and a lessened CPP benefit before being given a boost by OAS. <\/p>\n

For Canadians who left an employer benefits plan, there’s also a healthcare planning gap. Canada’s universal provincial healthcare covers doctor visits, hospital stays and some in-hospital drugs \u2014 but not outpatient prescriptions, vision care or most paramedical services. Early retirees need to budget for private supplemental health insurance or self-insure against these costs, which can range from (3) just over $100 to more than $400 per month for a private plan. <\/p>\n

Angela and Matt’s countdown timers are a smart approach because they help keep the couple on track. They know exactly how much time they have left to hit their savings goal, which helps keep them motivated. <\/p>\n

Is your retirement fund leaking? Secure your future today.<\/strong> Silent fees and stagnant interest can push your retirement date back by years. See how moving your savings to a high-interest account<\/a> can help you retire sooner and with more confidence. <\/p>\n

Make sure your portfolio will last <\/p>\n

One reason Angela and Matt are hesitant to act on what the numbers say is that what works on paper may not work in real life. Sequence of returns risk is a key culprit. <\/p>\n

Sequence of returns risk refers to the danger that poor investment performance early in retirement can have an outsized impact when you’re drawing income from your portfolio. <\/p>\n

For example, if stock prices are down, you’ll need to sell more shares to generate the same amount of income. That reduces your holdings more quickly and makes it harder to benefit from future market gains. Over time, this can significantly increase the risk of running out of money. <\/p>\n

There are approaches to limit this risk. D’Andrea recommends the bucket strategy. <\/p>\n

“I would build a bucket strategy with three goals in mind \u2014 guaranteed income, capital preservation and growth,” he said. “There’s peace of mind knowing that you have enough income to cover your day-to-day expenses with guaranteed sources, a bucket to comfortably grow assets and a long-term growth bucket to continue to build.” <\/p>\n

For Canadian retirees, this maps naturally onto the two main account types: a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) for tax-free flexibility. Coordinating withdrawals across these accounts \u2014 drawing from the RRSP in lower-income years, delaying CPP to lock in a higher indexed benefit and preserving TFSA withdrawals for later retirement \u2014 can significantly reduce lifetime taxes and protect against OAS clawback. <\/p>\n

You can also add any non-registered accounts into your financial arsenal for additional growth \u2014 just be mindful that any gains are taxable. In Canada, 50% of your capital gain is added to your taxable income and taxed at your marginal rate, so what you actually owe will depend on your income level and province. <\/p>\n

Read more: <\/strong>3 essential money moves to make once you’ve saved $50,000<\/strong><\/a> <\/p>\n

Consider getting professional help <\/p>\n

You may also feel more confident about retiring if a professional confirms you’re ready. <\/p>\n

“Retirement is not only a financial decision, but also an emotional one,” D’Andrea said. “I would suggest that you speak with a financial professional with a proper planning process who will assess your overall situation.” <\/p>\n

If a spreadsheet showing you have enough money isn’t enough to give you confidence, an adviser who can evaluate the bigger picture may provide the reassurance you need. <\/p>\n

If your adviser helps you create a clear plan to generate income, preserve your wealth and stay within your budget, you can retire with confidence. If not, you’ll know where you stand and can adjust accordingly. <\/p>\n

“If the numbers don’t work, it may be time to review all options and see if saving more and working a few more years might be a better choice,” D’Andrea said. <\/p>\n

Since Angela and Matt are ready to go, taking these steps should enable them to retire on their own schedule \u2014 and keep those countdown timers running. <\/p>\n

What Canadians can do next <\/p>\n

For Canadians wanting an early exit from the workforce, here are key steps worth taking before the countdown hits zero: <\/p>\n

Map out your CPP and OAS bridge<\/strong>: Model what your income looks like at ages 60, 65 and 70 under different CPP and OAS start dates. Deferring CPP to 70 increases your monthly benefit by up to 42%; deferring OAS to 70 increases it by up to 36%. Use the gap years to draw strategically from your RRSP \u2014 filling lower tax brackets before government income pushes you into a higher one. <\/p>\n

Protect your TFSA<\/strong>: The TFSA is one of the most powerful tools in the Canadian retirement toolkit. Withdrawals don’t count as taxable income and won’t trigger OAS clawback, making it ideal to preserve for later retirement when other income sources may be higher. <\/p>\n

Plan your healthcare coverage gap<\/strong>: Be sure to budget for private supplemental health insurance or factor in the out-of-pocket costs for prescriptions, vision and paramedical services that provincial plans don’t cover. Premiums vary by province, age and coverage level \u2014 compare plans well before you leave your employer’s group benefits. <\/p>\n

Know your RRIF deadline<\/strong>: Your RRSP must convert to a Registered Retirement Income Fund (RRIF) by December 31 of the year you turn 71. RRIFs require minimum annual withdrawals, which are fully taxable. Early, strategic RRSP drawdowns (4) before age 71 can reduce the size of forced RRIF withdrawals later \u2014 and your tax bill. <\/p>\n

Work with a certified financial planner (CFP)<\/strong>: A CFP can run retirement income projections, stress-test your portfolio against sequence of returns risk and build a withdrawal plan that coordinates your RRSP, TFSA, CPP and OAS to minimize lifetime taxes. Look for a fee-only planner to avoid potential conflicts of interest. <\/p>\n

What To Read Next <\/p>\n

The most expensive financial mistakes are often the ones you don’t see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances \u2014 delivered free each week. Subscribe now.<\/strong><\/a> <\/p>\n

Article Sources <\/p>\n

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>. <\/p>\n

Statistics Canada (1<\/a>); BMO Newsroom (2<\/a>); Canada Life (3<\/a>); Kalkine (4<\/a>) <\/p>\n

This article originally appeared on Money.ca<\/a> under the title: Our spreadsheet says we’re ready to retire at 60 \u2014 but are we? What every Canadian needs to consider first<\/a> <\/p>\n

This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"Middle-aged couple looking at paper and confused When Angela set a countdown timer on her phone for the…\n","protected":false},"author":2,"featured_media":570357,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[177],"tags":[243143,79,995,4478,18,19,17,16790,234,235,3887,243142,4475],"class_list":["post-570356","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-angela","tag-business","tag-canada","tag-canadians","tag-eire","tag-ie","tag-ireland","tag-oas","tag-personal-finance","tag-personalfinance","tag-retirement","tag-spreadsheet","tag-statistics-canada"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/570356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=570356"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/570356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/570357"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=570356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=570356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=570356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}