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As financial pressures rise, the dream of a comfortable retirement is slipping out of reach for millions of Canadians. A 2025 survey by the Healthcare of Ontario Pension Plan (HOOPP), an Ontario pension plan serving healthcare workers, found that 59% of unretired Canadians don’t believe they’ll ever retire (1). Meanwhile, data from Statistics Canada reveal the average retirement age has now crept past 65 — sitting at 65.1 years overall and as high as 68 for the self-employed (2).
On the surface, delaying retirement beyond age 65 can look like a responsible financial move. Working longer likely means higher Canada Pension Plan (CPP) benefits, more time to save and fewer years drawing down investments.
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But focusing only on the numbers misses an important part of the picture. Working longer can introduce non-financial risks — to your health, flexibility and overall quality of life — that may quietly undermine the retirement you’re trying to protect.
Here’s why delaying retirement until 65 isn’t always the safer option — and what to consider instead.
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Optimizing for quality of life
From a purely financial standpoint, working as long as possible looks like a smart move. Delaying retirement can maximize your CPP payments, extend the life of your savings and reduce the number of years you’ll rely on withdrawals.
But optimizing only for wealth can come at the expense of other things that matter just as much — your health, relationships and ability to actually enjoy the life you’re working so hard to fund.
Consider this: many of the experiences people dream about in retirement — travel, hiking, time-intensive hobbies or active time with family — are simply easier and more enjoyable in your 60s than in your mid-70s or 80s. A trip that feels adventurous at 62 can feel exhausting, risky or downright off-limits a decade later.
Health data reinforces this trade-off. According to a January 2026 Statistics Canada report on health-adjusted life expectancy, Canadians can expect roughly 66.9 years of healthy life — meaning the average person spends nearly 15 years of their life managing chronic conditions or physical limitations that affect quality of life. That gap has widened by nearly two years since 2019 alone, erasing more than a decade of health gains.
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Retiring early also gives you more high-quality time to spend with loved ones while still in good health — not just more time, but better time. That might mean a deeper connection with your partner while you’re both still feeling vigorous, or being more physically present with your grandchildren instead of conserving energy or managing pain.
None of this means everyone should retire early. But it does mean that delaying retirement to 65 or beyond shouldn’t be treated as an automatic goal. If your priority is quality of life — rather than the size of your portfolio — it may be worth planning for flexibility versus assuming ‘later is always better.’
Read more: 3 essential money moves to make once you’ve saved $50,000
Practical ways to retire earlier — depending on where you stand
If you’re seriously considering retiring before age 65, the next step is to be honest about which category you fall into: already there, nearly there, or not there yet.
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If you have enough to retire early
If your savings, pension, Canada Pension Plan (CPP) and other income sources can comfortably cover your living expenses, the biggest hurdle may not be financial — it may be psychological.
Research from the Canadian Psychological Association (CPA), a national professional organization for psychologists, finds that many higher-net-worth Canadians struggle to step away from work because their identity, routine or sense of purpose is tightly linked to their career (3). Others worry about boredom or feeling adrift once the structure of work disappears.
If this sounds familiar, the focus shouldn’t be on accumulating more money, but on planning what you’re retiring to — whether that’s part-time work, volunteering, travel, caregiving or creative pursuits.
If you can solve for purpose, retiring before the age of 65 may be far more achievable than you think.
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If you’re close but not quite there
If you’re within striking distance, small changes can make a big difference. Increasing your savings rate for a few years, taking on occasional contract or consulting work, or delaying full retirement while scaling back to part-time hours can significantly improve your outlook.
You’re also at a stage where strategic planning matters most. Adjusting when you draw CPP, coordinating withdrawals from registered and nonregistered accounts, or modestly increasing your portfolio risk — with professional guidance — can help bridge the gap without sacrificing long-term security. The Society of Actuaries (SOA), a professional organization for actuaries in North America, has found that delaying CPP from age 60 to 70 can more than double the benefit, yet fewer than 1 in 100 Canadians delay claiming CPP until age 70 (4).
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If you just aren’t there yet
If early retirement feels out of reach today, it’s usually the cost of living that’s the culprit, rather than investment returns. Downsizing your home, reducing fixed expenses or relocating to a lower-cost area can dramatically lower the income you need to retire.
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Even incremental changes — trimming recurring expenses or paying off high-interest debt — can free up cash flow and bring retirement closer than expected.
The hidden risks of working longer
Delaying retirement can improve your finances — but it also exposes you to risks that tidy spreadsheets don’t show.
Health is the biggest wildcard. Even if you’re healthy today, the odds of developing a chronic condition rise sharply in your 60s (5). A job loss, burnout or medical issue can force retirement earlier than planned — often at the worst possible time, before savings and benefits are fully optimized.
There’s also career risk. Ageism in the Canadian workplace is surging: Glassdoor data reported by HR News Canada found that ageism mentions jumped 133% in the first quarter of 2025 compared to the same period in 2024 (6). Older workers who lose their jobs face a deteriorating job market — Statistics Canada data shows the national job-finding rate fell from 24% before the pandemic to just 18.1% in 2025.
Being pushed into retirement is very different from choosing it on your own terms.
Finally, there’s opportunity cost. Years spent working longer are years you can’t get back — time when travel, hobbies, caregiving or simply enjoying good health may be easier and more meaningful.
Working longer can strengthen a retirement plan, but only if it remains a choice, not a necessity. That’s why building flexibility into your timeline — rather than anchoring everything to age 65 — matters more than hitting a specific number.
Final thoughts
Retiring at age 65 may look sensible on paper, but it can come at the cost of health, flexibility and some of the most active years of your adulthood. For many Canadians, the better goal isn’t maximizing the size of their nest egg, but the years they’re healthy enough to enjoy it.
If early retirement feels out of reach, focus on building flexibility: lower your living costs, boost savings where possible and plan for options that let you step back sooner — even if it isn’t all at once.
A tighter budget and a few adjustments to your retirement plan could help you enjoy several more years of quality retirement time.
— with files from Melanie Huddart and Romana King
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
HOOPP (1); Statistics Canada (2); University of Toronto (3); The CPP Take-Up Decision (4); CIHI (5); GlassDoor (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.