Hitting your retirement number doesn't mean you’re ready — watch for these 5 warning signs before you hand in your notice

Even with a solid nest egg, there are other factors that can make a retirement slide, even though it looks good on paper. If any of these five red flags sound familiar, it may be worth taking a pause before handing in your notice to your employer.

1. You genuinely enjoy your work

For many people — especially those who’ve built their careers over decades — work offers something retirement can’t always easily replace: purpose, social connection and mental stimulation.

According to a 2024 Pew Research Center survey, 67% of workers age 65 and older say they're “extremely” or “very satisfied” with their job overall — compared to less than half of workers under 30 (1). Additionally, workers over 65 also report the highest satisfaction levels across nearly every area of employment, from their relationships with colleagues to work flexibility.

If you fall into this category, there’s no rule saying retirement has to be all or nothing. Scaling back to part-time hours, shifting to a consulting role or negotiating a reduced schedule can let you keep the parts of your job you value most while freeing up time for other endeavours. The goal is a life that feels full — not just one that’s all free time.

2. You don’t have a clear picture of what retirement looks like

Being able to stop working isn’t the same thing as having a reason to quit. Retirement without a plan for how you’ll fill your days can quickly make the idea feel aimless — and that’s a risk that doesn’t show up in any financial projection.

Before you retire, take time to honestly consider what you’re moving toward, not just what you’re leaving behind. If community matters to you, look into volunteering opportunities in your area before you decide on your exit date. If family is the draw, think about whether stopping work entirely makes sense. If you’ve always wanted to pursue creative projects, figure out what that looks like in practice.

3. Your budget is based on rough estimates

Retirement math done on the back of a napkin can leave a lot of unknowns, resulting in some unexpected consequences. According to a 2025 Global Retirement Reality Report by State Street Global Advisors, more than half (63%) of potential retirees aren’t aware of how much retirement savings they’ll need (2). And that concern is well-founded: The average Canadian retirement age has climbed from 64.3 years of age to 65.3 between 2020 and 2024, as more people find they simply aren’t as ready as they originally thought (3).

Before you retire, create a detailed monthly and annual budget that accounts for the life you really want. Build in an emergency fund for surprises — home repairs, a car replacement or an unexpected health expense. If the numbers still work, you’re in a much stronger position than someone who’s only estimating.

4. You haven’t factored in health-care costs

Canada’s public health care system covers a lot — but not everything. Vision, prescription drugs, physiotherapy and hearing aids are among the expenses that fall outside most provincial plans. And while some provinces (such as B.C., Quebec and New Brunswick) offer drug programs for seniors, coverage varies widely and rarely eliminates out-of-pocket costs (4).

According to the Conference Board of Canada, retirees spend roughly $5,800 annually on out-of-pocket health expenses — a number that’s projected to rise to $8,000 by 2035 (5). A study by PolicyMe and Angus Reid also found that 56% of Canadians over the age of 55 delay health appointments due to cost, showing a gap between what people expect to pay and what they face in reality (6).

If you’re planning to retire before 65, the stakes are higher still. Employer-sponsored benefits usually end when you leave the workforce, and the window to convert your group plan to an individual policy is narrow — usually 31 to 60 days (7). If you miss that, you may face medical underwriting, which can translate into higher premiums or exclusions if you have pre-existing conditions.