The top 6 regrets Canadians have about about their early retirement — and how to avoid the same mistakes

But not always.

Recent research shows that when early retirees look back on their decision, a significant share of them wish they had delayed retirement — and not only for financial reasons (1). According to the Financial Consumer Agency of Canada (FCAC), 41% of retirees say they find themselves financially worse off in retirement than they had predicted (2).

Here are six of the most common regrets early retirees report in Canada — and what you should consider before making the call on when to stop working.

1. Not saving enough

Having more free time quickly loses its appeal when it comes with constant financial anxiety. Among the most common complaints from early retirees is that savings and other retirement income don’t stretch nearly as far as they expected.

The numbers tell a story many Canadians who are approaching retirement should note. The Healthcare of Ontario Pension Plan (HOOPP) found in its 2025 Canadian Retirement Survey that 59% of unretired Canadians don’t believe they will ever be able to retire given their current financial situation — and half hadn’t set aside any money for retirement in the past year (3).

Meanwhile, BMO’s 15th Annual Retirement Survey, released in February 2026, found that 36% of Canadians are worried they won’t have enough money to support their retirement because prices continue to climb. Combine that with the belief that they’ll need an average of $1.7 million to retire comfortably, and you can understand the concern (4).

Retiring early creates a compounding problem: The number of years your savings need to support you keeps growing, while the time you have to contribute keeps shrinking. What felt like a comfortable nest egg at 58 may feel very different at 78.

2. Underestimating costs — especially the health-care gap

Many early retirees assume their spending habits won’t change much in retirement. What they often underestimate is the long-term cost of inflation and another financial risk: The loss of employer-provided supplemental benefits covering prescriptions and other medical needs.

Canada’s publicly funded health-care system covers physician visits, hospital care and some medications. But it doesn’t cover dental care, vision, hearing aids, paramedical services or most prescriptions for those under 65. According to Statistics Canada, approximately 66.8% of employed Canadians have workplace medical or dental benefits through their main employer (5). When those benefits disappear at retirement — particularly for those leaving before age 65 — the financial gap can be significant.

If you retire early, you’ll likely need to buy private health insurance coverage to fill any gaps. This can run anywhere from $80 to $300 monthly depending on your age and the plan you choose. While most provinces step in with some additional support once you turn 65, the amount of help you receive varies on where you live. That means many retirees still end up paying out of pocket for prescriptions, dental, vision and paramedical services such as physiotherapy (6).

Data from PolicyMe’s health insurance access and affordability study found that 47% of Canadians aged 55 and older are already deferring medical care due to high cost — including 35% who have postponed dental care and 28% who have delayed vision care (7). While the federal government has introduced the Canadian Dental Care Plan (CDCP), which may cover seniors who fit both the income and residence parameters, it is not as comprehensive as a private plan would be, according to PolicyMe.

Long-term care costs add another layer of risk. Canadians benefit from provincially subsidized long-term care (LTC). However, “subsidized” doesn’t mean free. In Ontario, as of July 1, 2024, the copayment for a basic room in LTC is $2,036.40 a month, whereas private rooms can run around $3,000 month (8). Nova Scotia’s rate for standard accommodation in a nursing home was $114 a day as of March 1, 2026 (9).

And these costs will likely rise over time. According to the Canadian Medical Association, the number of Canadians needing long-term care and home care services is forecast to exceed 2.4 million by 2031, with annual elder-care service costs estimated at $58.5 billion (10).

These numbers mean planning for health care — including potential long-term care — is one of the most important and most frequently overlooked parts of early retirement planning.

3. Claiming CPP too early

For many Canadians, the Canada Pension Plan (CPP) is one of their most important sources of retirement income. And when you claim it can have a lasting impact on how much you receive for the rest of your life.

You can start collecting CPP as early as age 60, but claiming it before the standard age of 65 comes at a steep price. Payments are permanently reduced by 0.6% for every month you collect before age 65, up to a maximum reduction of 36% if you start at 60 (11). On the other hand, if you defer CPP past age 65, payments increase by 0.7% a month — or 8.4% annually — for a maximum increase of 42% if you wait until age 70.

Old Age Security (OAS) begins at 65. As of 2026, OAS pays a maximum of $743.05 a month for those aged 65 to 74 (12). Like CPP, OAS can be deferred up to age 70, increasing payments by 0.6% each month, for a potential increase of 36% (12).

Both decisions — when to claim CPP and when to start OAS — are specific to your circumstances and depend on health, other income sources and life expectancy. But for early retirees who start drawing CPP at 60 out of financial necessity, the permanent reduction can erode your long-term income security for decades to come.

It may be worth discussing with a financial advisor whether using personal savings and delaying CPP and OAS would be beneficial to max out your lifetime government pension income. Withdrawing from your Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs) in the early years of retirement can help bridge any income needs while you build up your government pensions.

4. Skipping long-term care insurance

Long-term care insurance is something that most Canadians don’t think about until it’s too late to make it work within your budget.

Premiums tend to be lower when you’re younger and in good health. Once serious health conditions emerge, coverage can become significantly more expensive — or unavailable altogether. A 2023 working paper from the National Bureau of Economic Research (NBER) found that more than a quarter of retirees cited failure to purchase long-term care insurance as a financial regret (13).

While provincial governments subsidize LTC homes, there is still a risk for costly out-of-pocket expenses. Even subsidized care involves significant copayments, and private or semi-private accommodation costs are considerably more (14). Without supplemental insurance, a multi-year stay in a private LTC facility could lead to a serious decline of decades worth of savings.

The Canadian Life and Health Insurance Association (CLHIA) notes that long-term care insurance policies are available in Canada and can help offset the costs of care that government programs don’t cover — approximately 22% of the total cost (15). Considering the rising demand and growing wait lists for subsidized LTC, financial planners are recommending exploring coverage options while premiums are still manageable.

5. Missing structure, purpose and social connection

Money isn’t the only thing people miss when they leave the workforce early. Routines, professional identity, daily interaction with colleagues and a clear sense of purpose can all be harder to replace.

Academic research shows that leaving the workforce early is often accompanied by a reduction in social networks and mental engagement, both of which are strongly associated with overall well-being (16).

The National Institute on Ageing’s (NIA) 2025 Ageing in Canada Survey found that 57% of Canadians aged 50 and older feel somewhat or very lonely, with 43% at risk of social isolation — levels that have remained virtually unchanged since 2022 (17). For early retirees whose social lives were anchored in their work environment, these risks can intensify quickly.

Financial advisers and retirement coaches encourage people on the verge of retirement to develop a concrete plan — not only for their finances, but also their time, social connections and sense of purpose.

6. Difficulty re-entering the workforce

Many early retirees assume that if retirement doesn’t work out, they can simply return to work. The reality is often more complicated.

Age discrimination in Canadian workplaces is a documented challenge. According to a study by Indeed Canada, 14% of all Canadian workers perceive their age as a barrier to employment — a figure that doubles to 28% among those aged 65 and older (18). A separate report from Access Work Service estimates that approximately 60% of Canadians aged 45 and older have experienced workplace age discrimination (19).

Further, Statistics Canada data confirms the average age of retirement in Canada rose to 65.1 in 2023 — its highest level since the late 1970s. And the labour force participation rate among Canadians aged 55 and older reached 36.4% in April 2024, up from 25.7% in 2001 (20). While more older Canadians are working longer, re-entering the workforce after stepping away for a period of time is a different challenge.

For early retirees who find they need or want to return to work, a skills or resume gap, or outdated credentials can make the process significantly harder.

What to consider before leaving work prematurely

Early retirement can be immensely satisfying — but without a solid plan, the excitement of leaving the workforce can turn into lasting regret. Before stepping away, consider the following:

Estimate your retirement needs: Calculate how much money you’ll realistically need every year. Factor in housing, food, transportation, health care, inflation, unexpected expenses and the added leisure costs that often come with more free time. Then extend that estimate across a timeline that could reach into your 90s or beyond. It’s better to overestimate than end up short.

Stress-test your retirement income: Use scenario planning to see how your finances would hold up under different market and economic conditions. Canada’s federal government offers a free Retirement Income Calculator at Canada.ca to help estimate CPP, OAS and RRSP/RRIF income.

Plan for the health-care gap: If you retire before 65, understand everything the provincial programs cover. Explore private supplemental insurance for vision and prescription costs, apply for the CDCP (if you’re eligible) and factor potential LTC costs into your plan.