Chances are high that you’ll regret retiring at 60 — even if you have $1 million in savings. Here are 3 good reasons why

Meanwhile, Statistics Canada data shows the actual average retirement age in Canada is 65.4 years — more than five years later than what most people say they prefer.

If you’re on track to hit seven figures before 60, congratulations. But money alone may not be enough. Surveys of actual retirees keep exposing the same uncomfortable truth: Their regrets aren’t always about the money they’ve saved, but rather, the other benefits that came with the paycheque.

Here are three things you might want to consider before opting for an early retirement.

1. A balance sheet becomes a burden

Carrying debt has different implications when you switch from steady employment income to a fixed retirement income. There’s little room for error, and high-interest debt can quickly erode your budget — even if your nest egg is worth $1 million.

The challenge is more common than many people realize. According to Royal LePage data from 2025, almost 30% of Canadian households plan on carrying mortgage debt in retirement within the next two years. And data from the Ontario Securities Commission shows that nearly half of retirees carry some form of non-mortgage debt.

More strikingly, many retirees say this debt was a surprise: They didn’t plan on having it at this stage in life. From unexpected home repairs to family emergencies, even affluent retirees can find themselves with a hefty interest payment every month.

To minimize your risk, consider consolidating higher-interest debts — such as credit card balances — into a lower-rate personal loan or a home equity line of credit (HELOC) before you retire. The Government of Canada website offers free tools and resources to help you compare debt repayment options and manage your finances in retirement.

The key is to go into retirement with as little high-interest debt as possible — because a fixed income leaves no room to absorb it.

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

2. A lack of mental challenges

Research published in the Journal of Health Economics suggests that retirement can be associated with cognitive decline for some people — particularly men and those in cognitively demanding roles. While findings vary, the underlying message is consistent: staying mentally active matters

Fortunately, the fix can be inexpensive. Finding some way to challenge yourself regularly — whether through community volunteering, a passion project, part-time work, freelance consulting or a seat on a community board — may help keep you in the game.

The Canadian Association of Retired Persons (CARP), a national advocacy and community organization for older Canadians, offers job boards, volunteer listings and social resources for retirees looking for their next challenge. Membership starts at $19.95 a year — making it one of the most affordable forms of insurance against an unstructured Tuesday.

3. An absence of community and socialization

Loneliness and lack of social interaction can be a genuine health hazard in retirement. According to the Public Health Agency of Canada, social isolation among older Canadians is associated with an increased risk of heart disease, depression and cognitive decline. The effects aren’t only emotional — they’re physical.

To mitigate this, it’s worth building up your social infrastructure. Recurring dinners with friends, a hobby community, a faith group, a running club — any recurring activity that connects you to others can serve as an anchor in retirement.

Experts suggest finding a group, community role or social gathering that you’re already part of before you leave work permanently. After all, the people you see weekly at 62 are the ones most likely to show up at 72.

What Canadians can do now

If early retirement is your goal, the Canadian financial system offers several tools that can help you get there more securely — and avoid the regrets:

Maximize your RRSP and TFSA contributions

The Registered Retirement Savings Plan (RRSP) allows you to defer tax on contributions until withdrawal — ideally in retirement, when your income and tax rate are lower. The Tax-Free Savings Account (TFSA) lets your investments grow tax-free with no tax on withdrawals, at any age. For 2026, the contribution limit for registered accounts is as follows: 18% of your prior year’s earned income or $33,810, whichever is lower, for your RRSP, and a $7,000 annual limit for your TFSA.

Consider delaying CPP

You can start receiving Canada Pension Plan (CPP) benefits as early as age 60, but your monthly payment is reduced by 0.6% for every month you collect before age 65 — a 36% reduction if you take it at 60. Conversely, deferring to age 70 increases your monthly benefit by 42% compared to taking it at 65. For those with substantial savings who can afford to wait, deferring CPP can provide a larger and more reliable income floor in later retirement.

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