Canadians say they need $1.7M to retire. I’m 57 with $650K in my RRSP and I hate my job — can I quit before CPP kicks in?

Pat or Patricia or any other Canadian approaching retirement age is facing perhaps the most hotly debated question: how much do I need to have saved to retire comfortably? It’s a conundrum facing millions of Canadian baby boomers, all of whom will be over 65 by 2030 (1). Even choosing which method to calculate how much you need can be overwhelming.

The answer to when you can safely retire depends on several factors specific to an individual’s unique circumstances. Here’s how Patricia’s stack up.

Can I retire at 57 with $650,000? Start with realistic math

Before retiring early, there are a few things Patricia should consider. If she sets a 25-year timeline for her retirement, her current savings would only allow for a modest $26,000 a year withdrawal. However, the average Canadian feels that they’ll need about $1.7 million to retire comfortably, according to BMO’s latest retirement survey, released earlier this year (2).

That amount does not include the Canada Pension Plan (CPP), but Patricia is not eligible to begin collecting until she is 60, and starting before she reaches 65 will reduce her benefit. However, if she were to wait until 70, she would see that figure grow with each passing year. Starting at 60 permanently cuts her payments by 36%, while waiting until 70 boosts them by 42% (3). Old Age Security (OAS) won’t start until 65, either (4).

Another vital consideration for retirees is whether they will be able to afford long-term care, should they need to move to a nursing home, which can be costly. For example, if Patricia is looking to seek out private residential care, that would cost somewhere between $1,600 to $6,270, according to Comfort Life (5).

Health costs start sooner than that. Most workplace benefit plans don’t follow you into retirement, so Patricia would pay for prescriptions, dental and vision care herself once she quits. Before she gives notice, she should look into affordable life and health coverage from a provider such as PolicyMe.

She’d only need to answer four questions to get an instant, no-obligation quote, valid up to 90 days. Most policies are approved without any medical tests, and she can opt for term lengths ranging from 10 to 30 years.

Retirees should also take into account any debts they may have accrued, and the possibility that other, unforeseen expenses may arise, such as home repairs and medical bills.

With no CPP for at least three years, Patricia’s withdrawals would be her only income, and a surprise bill could force her to sell investments at a bad time.

Building an emergency fund in a high-interest savings account would let her earn more while keeping her money accessible.

If she opens a personal account with EQ Bank, in just a few minutes she gets access to the best features of a chequing account combined with a high-interest savings rate. When she funds her account and sets up a direct deposit, she can earn 2.75% on every dollar deposited into the account.

Patricia also needs to do what many of us avoid: Honestly consider how long she’s likely to live, and what her current lifestyle and overall health could mean for her future.

The average life expectancy for a Canadian currently sits at 82.2 years, and it’s closer to 84.3 for women. She also has to plan for the possibility that she could live longer than the average life expectancy (6).

How to make early retirement work on $650,000

Before opting for early retirement, Patricia should make sure that the money she already has saved is working for her.

Costs are a good place to start. On a $650,000 portfolio, every percentage point paid in fees works out to $6,500 a year — a quarter of her planned withdrawal. A discount brokerage such as CIBC Investor’s Edge would let her build her own portfolio with an online and mobile platform that features low commissions and no fees on mutual funds.

She’d pay just $6.95 per stock and ETF trade. Plus, she can enjoy unlimited commission-free trades on over 200 select ETFs. CIBC also waives annual fees if you hold over $10,000 combined across registered and non-registered accounts, which her $650,000 easily covers. With access to real-time news and stock alerts, she can track market shifts and build a passive dividend income stream without paying exorbitant commissions.

If her plan to draw down her retirement savings is based on the 4% rule, she should remember that it is based on a 30-year retirement, a balanced portfolio of stocks and bonds, and that the creator of the rule, William Bengen, raised his own safe withdrawal rate to 4.7% in his 2025 book, A Richer Retirement (7). On $650,000, that’s the difference between a first-year withdrawal of $26,000 and about $30,500.

Retirees should also take into account the cost of living in their area, and whether they would consider retiring somewhere more affordable.

Moving isn’t the only way for Patricia to lower her cost of living. Fixed bills like auto and home insurance often creep up at renewal, and on a budget of roughly $26,000 a year, every dollar counts.

If she drives, a comparison platform like Rates.ca could potentially save her $500+ by comparing 20+ quotes from top-rated auto insurance providers to ensure she isn’t paying a hidden ‘loyalty tax’ to her current insurer. She’d just answer a few basic questions, and Rates.ca will show her the most affordable deals in her area in as little as 3 minutes.

Not only is the process 100% free, but she could also potentially save 20% by bundling her auto and home insurance together.

If early retirement is a nonnegotiable for Patricia, she should consider outside-the-box solutions to stretch her retirement savings. That could include downsizing and living more modestly, setting up a rental unit within her home to establish passive income or even considering a co-housing arrangement with other older adults, which could not only be a wise financial decision but also improve Patricia’s quality of life as she ages.