While the average retirement age in Canada is 65, the "best" age is typically between 60 and 70, depending on financial readiness, health, and lifestyle goals. Retiring at 65 aligns with standard Old Age Security (OAS) and reduces Canada Pension Plan (CPP) reductions. Delaying to 70 maximizes CPP, while early retirement at 60 reduces benefits by up to 36%.
There's no single “best” age to retire in Canada—it depends on your money, health, and what you actually want your life to look like. Most people aim somewhere between 60 and 70, but the real “right” age is when you can comfortably cover your expenses without anxiety.
If you don't expect to live past 75, you may be better off taking CPP benefits at age 60. If you expect to live past 75, you may be better off taking CPP benefits at age 65.
Can you retire on $500,000 in Canada? Based on some of these rules, let's calculate what the retirement income would be. The average retirement age in Canada is 65. Estimating that the $500,000 is to last you 25 years, your yearly retirement income would be $20,000.
The $1,200 payment is a one-time direct deposit issued by the Canada Revenue Agency for seniors classified as low income based on their most recent tax return. The payment is not a loan, does not need to be repaid and does not replace existing monthly benefits.
Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement. However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work.
The top ten financial mistakes most people make after retirement are:
The main government source is the Canada Pension Plan (CPP), which pays out based on your lifetime contributions. * For 2024, the maximum benefit for someone retiring at age 65 is $1,364.60 per month, although the average payout is actually much lower, at $831.92 per month.
Can a U.S. citizen retire in Canada? Yes—but there's no specific “retirement visa.” You'll need to qualify through other immigration routes, such as family sponsorship, a start-up visa, or a skilled worker or investor program.
Whether you are planning for your future or already retired, here are six hidden retirement costs to factor into your retirement plan and budget.
Q: Is Canada a good place for U.S. retirees? A: Yes, retiring in Canada has many benefits and is likely preferable to retiring in the U.S. because Canada has a slightly lower cost of living and publicly funded universal healthcare that's available to citizens their entire lives.
39% of Canadians aged 55-64 have less than $5,000 in savings (-5 pts); 73% have $100,000 or less in savings. More than one in three (36%) women aged 55-64 have no savings at all, compared to one in five (22%) men.
The $1,000 a month rule is a retirement guideline suggesting you need about $240,000 saved for every $1,000 per month in desired income, based on a 5% annual withdrawal rate (5% of $240k is $12k/year, or $1k/month). It's a simple way to set savings goals, but it doesn't account for inflation, taxes, or other income like Social Security, so it's best used as a starting point, not a complete plan.
Retirement Regret #1.
Retiring as soon as possible can be a priority, but retiring too early can be a big mistake. For one, premature retirement can mean gambling with your financial security in the future. If you leave work too early, you could be forfeiting some key, higher-earning years to build up your savings.
In order to be considered wealthy in Canada, you should have a net worth of at least $1 million. That being said, a lot of Canadians who are considered wealthy live a relatively normal life. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three.
In November 2025, the full retirement age (FRA) — the age at which individuals qualify to receive 100% of their Social Security benefits — increased to 66 years and 10 months for those born in 1959. FRA gradually rises month by month, so in November 2025, those born in January 1959 reached their FRA.
Old Age Security (OAS)
The Old Age Security program, the cornerstone of Canada's retirement income system, provides you with a modest pension at age 65 if you have lived in Canada for at least 10 years. If you are a low-income senior, you may be eligible for other benefits as early as age 60.