I'm 62, and I've been working the last 43 years. I haven't set a retirement date yet. How do I know when it's the right time to pull the trigger?

How to narrow down your retirement date

Retiring too early could mean leaving your job at a time when you're not financially or emotionally secure. However, retiring past the traditional age could mean missing out on things you've always wanted to do in your golden years.

There are a number of things you should consider when deciding when to retire. First, think about CPP, and whether you'll need to claim benefits right away if you retire.

You can file as early as age 60, but your benefits will be increase for every year you delay up until 70.

You should also think about health insurance, since that's something you need to have at any age.

According to data from the Conference Board of Canada, out of pocket health care costs for Canadian seniors is currently at $5,800 annually, with that figure expecting to rise to $8,000 by 2035.

“Health care costs are among the most unpredictable expenses, especially when it comes to retirement planning,” said Robert Kennedy, SVP, workplace consulting at Fidelity.

While every province and territory offers publically-funded, universal health care services to residents, ther are certain things that aren't covered, but could be detrimental to your finances during a more precarious time of unemployment.

Some things to look out for include:

• Vision care such as glasses, contact lenses and corrective eye surgeries
• Physiotherapy and rehabilitation due to injuries or hospitalization are mostly not covered throughout Canada
• Part of the costs for nursing homes or residential care facilities — although, some provincial governments may provide partial monetary assistance
• Some of the costs related to home care services, such as personal support workers or healthcare aides
• Medications prescribed outside of a hospital visit
• Portions of dental care not covered by the Canadian Dental Care Plan (CDCP)

You'll need to find out if your previous work's insurance coverage can extend into retirement, whether through full access to workplace benefits or conversion options that will allow certain benefits to continue. You could also look into private options depending on your needs.

In addition, it's important to examine your finances and see what the numbers look like. A 2023 survey from the National Institute on Ageing found that only 34% of Canadians aged 50 and over are ready to retire, while one in four have saved $5,000 or less for retirement.

However, a 2025 BMO survey found that Canadians believe it takes $1.54 million to pull off a comfortable retirement. So, you'll need to see where your savings fall and what sort of annual income your nest egg might allow for.

If you're sitting on $1 million, for example, you can use the popular 4% rule to arrive at an annual income of about $40,000. You may decide you can live comfortably on that, in addition to whatever CPP pays you. But if not, that’s a good reason to work longer and save more.

Also, think about how much debt you have (if any).

The Credit Counselling Society found that Canadians aged 55+ are the fastest growing group seeking the organization's help to manage credit card and other debt, with the average debt carried by its clients at $30,752. High-interest debt like that could eat up a big chunk of your retirement income, so you may want to try to hold off on ending your career until your credit card balances are gone.

Finally, think about the non-financial side of retirement. Many people end their careers only to wind up lost. If you’re not sure how you’ll fill your days in retirement, you may want to keep working longer – even if you can afford to stop now.

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What’s the ideal age to retire?

A 2023 report from Statistics Canada found that 45% of Canadians aged 60 to 64 are either completely or partially retired. For those who were fully retired, over one-third (35%) of men and more than one-quarter (28%) of women citing financial reasons as the main factor in determining the timing of their retirement. Additionally, people in this group reported that the most important factor was being financially ready, followed by qualifying for a pension or deferring the start of their Old Age Security (OAS) pension in exchange for a larger amount.

The decision to retire is a very personal one. So, a good bet is to think about how you feel about working versus retiring.

If you love your job and are someone who thrives on being busy, then you may not want to retire in the next year or two. Similarly, if you feel your savings could use a boost, working a bit longer could help pad your nest egg. In fact, the Stats Canada survey also found that among people who had not fully retired, 55% would continue working part-time, while 49% would work reduced hours if it didn't effect their pension.

On the other hand, if you’re miserable at your job and it’s a source of stress, you may want to consider retiring this year or next if you can afford to. Even if you like your job, if there are things you want to do in retirement that you fear you won’t be able to do a few years down the line, like take a six-month backpacking trip, that’s another reason to consider ending your career sooner as long as the finances work.

If you’re really torn, you may want to talk to a financial advisor and get their guidance. A finance professional can help you understand the pros and cons of retiring at various points so you can feel more confident in your decision.

Sources

1. National Institute on Ageing: Perspectives on Growing Older in Canada: The 2023 NIA Ageing in Canada Survey (Jan 28, 2025)

2. Credit Counselling Society: Seniors & Debt – A growing problem that we can help fix, by Tim St. Vincent (Jan 10, 2025)

3. Statistics Canada: Majority of people planning to retire would continue working longer if they could reduce their hours and stress (Aug 1, 2023)