Our spreadsheet says we’re ready to retire at 60 — but are we? What every Canadian needs to consider first

While this particular situation is hypothetical, the dilemma at hand resonates deeply for Canadians. According to Statistics Canada, 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.

And according to BMO’s 2026 Retirement Survey, 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.

So, how can Angela and Matt — and the many Canadians in a similar position — know they’re truly ready to step back?

Set a clear goal early and keep tabs on it

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.

“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.

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.

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.

The Canada Pension Plan (CPP) can be claimed as early as age 60, but doing so reduces monthly benefits permanently — 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.

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 — 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 just over $100 to more than $400 per month for a private plan.

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.

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Make sure your portfolio will last

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.

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.

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.

There are approaches to limit this risk. D’Andrea recommends the bucket strategy.

“I would build a bucket strategy with three goals in mind — 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.”

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 — drawing from the RRSP in lower-income years, delaying CPP to lock in a higher indexed benefit and preserving TFSA withdrawals for later retirement — can significantly reduce lifetime taxes and protect against OAS clawback.

You can also add any non-registered accounts into your financial arsenal for additional growth — 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.

Consider getting professional help

You may also feel more confident about retiring if a professional confirms you’re ready.

“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.”

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.

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.

“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.

Since Angela and Matt are ready to go, taking these steps should enable them to retire on their own schedule — and keep those countdown timers running.