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Woman in distress <\/p>\n Woman in distress <\/p>\n
The dream of early retirement is powerful: more freedom, more time, more life. For many Canadians, they\u2019re working towards a plan to step away from the daily grind before the traditional age of 65 \u2014 but sometimes, the leap happens faster than planned.<\/p>\n
A layoff, a health scare, a difficult workplace or simply a deep desire to reclaim their days \u2014 any of the reasons people retire early vary widely. And sometimes, the timing works out beautifully.<\/p>\n
But not always.<\/p>\n
Don’t Miss <\/p>\n
Recent research shows that when early retirees look back on their decision, a significant share of them wish they had delayed retirement \u2014 and not only for financial reasons (1). According to the Financial Consumer Agency of Canada (FCAC), 41% of retirees say they find themselves financially worse off in retirement than they had predicted (2).<\/p>\n
Here are six of the most common regrets early retirees report in Canada \u2014 and what you should consider before making the call on when to stop working.<\/p>\n
1. Not saving enough <\/p>\n
Having more free time quickly loses its appeal when it comes with constant financial anxiety. Among the most common complaints from early retirees is that savings and other retirement income don\u2019t stretch nearly as far as they expected.<\/p>\n
The numbers tell a story many Canadians who are approaching retirement should note. The Healthcare of Ontario Pension Plan (HOOPP) found in its 2025 Canadian Retirement Survey that 59% of unretired Canadians don\u2019t believe they will ever be able to retire given their current financial situation \u2014 and half hadn\u2019t set aside any money for retirement in the past year (3).<\/p>\n
Meanwhile, BMO\u2019s 15th Annual Retirement Survey, released in February 2026, found that 36% of Canadians are worried they won\u2019t have enough money to support their retirement because prices continue to climb. Combine that with the belief that they\u2019ll need an average of $1.7 million to retire comfortably, and you can understand the concern (4).<\/p>\n
Retiring early creates a compounding problem: The number of years your savings need to support you keeps growing, while the time you have to contribute keeps shrinking. What felt like a comfortable nest egg at 58 may feel very different at 78.<\/p>\n
To get started, open a no-fee RRSP high-interest savings account with EQ Bank<\/a>. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account<\/a>.<\/p>\n Read more: Here are the 3 net worth milestones that change everything for Canadians<\/a> (and what they say about you)<\/p>\n 2. Underestimating costs \u2014 especially the health-care gap <\/p>\n Many early retirees assume their spending habits won\u2019t change much in retirement. What they often underestimate is the long-term cost of inflation and another financial risk: The loss of employer-provided supplemental benefits covering prescriptions and other medical needs.<\/p>\n Canada\u2019s publicly funded health-care system covers physician visits, hospital care and some medications. But it doesn\u2019t cover dental care, vision, hearing aids, paramedical services or most prescriptions for those under 65. According to Statistics Canada, approximately 66.8% of employed Canadians have workplace medical or dental benefits through their main employer (5). When those benefits disappear at retirement \u2014 particularly for those leaving before age 65 \u2014 the financial gap can be significant.<\/p>\n If you retire early, you\u2019ll likely need to buy private health insurance coverage to fill any gaps. This can run anywhere from $80 to $300 monthly depending on your age and the plan you choose. While most provinces step in with some additional support once you turn 65, the amount of help you receive varies on where you live. That means many retirees still end up paying out of pocket for prescriptions, dental, vision and paramedical services such as physiotherapy (6).<\/p>\n Data from PolicyMe\u2019s health insurance access and affordability study found that 47% of Canadians aged 55 and older are already deferring medical care due to high cost \u2014 including 35% who have postponed dental care and 28% who have delayed vision care (7). While the federal government has introduced the Canadian Dental Care Plan (CDCP), which may cover seniors who fit both the income and residence parameters, it is not as comprehensive as a private plan would be, according to PolicyMe.<\/p>\n Long-term care costs add another layer of risk. Canadians benefit from provincially subsidized long-term care (LTC). However, \u201csubsidized\u201d doesn\u2019t mean free. In Ontario, as of July 1, 2024, the copayment for a basic room in LTC is $2,036.40 a month, whereas private rooms can run around $3,000 month (8). Nova Scotia\u2019s rate for standard accommodation in a nursing home was $114 a day as of March 1, 2026 (9).<\/p>\n And these costs will likely rise over time. According to the Canadian Medical Association, the number of Canadians needing long-term care and home care services is forecast to exceed 2.4 million by 2031, with annual elder-care service costs estimated at $58.5 billion (10).<\/p>\n These numbers mean planning for health care \u2014 including potential long-term care \u2014 is one of the most important and most frequently overlooked parts of early retirement planning.<\/p>\n Cover what provincial health care doesn\u2019t with affordable plans from PolicyMe<\/a>.<\/p>\n 3. Claiming CPP too early <\/p>\n For many Canadians, the Canada Pension Plan (CPP)<\/a> is one of their most important sources of retirement income. And when you claim it can have a lasting impact on how much you receive for the rest of your life.<\/p>\n You can start collecting CPP as early as age 60, but claiming it before the standard age of 65 comes at a steep price. Payments are permanently reduced by 0.6% for every month you collect before age 65, up to a maximum reduction of 36% if you start at 60 (11). On the other hand, if you defer CPP past age 65, payments increase by 0.7% a month \u2014 or 8.4% annually \u2014 for a maximum increase of 42% if you wait until age 70.<\/p>\n Old Age Security (OAS) begins at 65. As of 2026, OAS pays a maximum of $743.05 a month for those aged 65 to 74 (12). Like CPP, OAS can be deferred up to age 70, increasing payments by 0.6% each month, for a potential increase of 36% (12).<\/p>\n Both decisions \u2014 when to claim CPP and when to start OAS \u2014 are specific to your circumstances and depend on health, other income sources and life expectancy. But for early retirees who start drawing CPP at 60 out of financial necessity, the permanent reduction can erode your long-term income security for decades to come.<\/p>\n It may be worth discussing with a financial advisor whether using personal savings and delaying CPP and OAS would be beneficial to max out your lifetime government pension income. Withdrawing from your Registered Retirement Savings Plans (RRSPs)<\/a> or Tax-Free Savings Accounts (TFSAs)<\/a> in the early years of retirement can help bridge any income needs while you build up your government pensions.<\/p>\n 4. Skipping long-term care insurance <\/p>\n Long-term care insurance is something that most Canadians don\u2019t think about until it\u2019s too late to make it work within your budget.<\/p>\n Premiums tend to be lower when you\u2019re younger and in good health. Once serious health conditions emerge, coverage can become significantly more expensive \u2014 or unavailable altogether. A 2023 working paper from the National Bureau of Economic Research (NBER) found that more than a quarter of retirees cited failure to purchase long-term care insurance as a financial regret (13).<\/p>\n While provincial governments subsidize LTC homes, there is still a risk for costly out-of-pocket expenses. Even subsidized care involves significant copayments, and private or semi-private accommodation costs are considerably more (14). Without supplemental insurance, a multi-year stay in a private LTC facility could lead to a serious decline of decades worth of savings.<\/p>\n The Canadian Life and Health Insurance Association (CLHIA) notes that long-term care insurance policies are available in Canada and can help offset the costs of care that government programs don\u2019t cover \u2014 approximately 22% of the total cost (15). Considering the rising demand and growing wait lists for subsidized LTC, financial planners are recommending exploring coverage options while premiums are still manageable.<\/p>\n 5. Missing structure, purpose and social connection <\/p>\n Money isn\u2019t the only thing people miss when they leave the workforce early. Routines, professional identity, daily interaction with colleagues and a clear sense of purpose can all be harder to replace.<\/p>\n Academic research shows that leaving the workforce early is often accompanied by a reduction in social networks and mental engagement, both of which are strongly associated with overall well-being (16).<\/p>\n The National Institute on Ageing\u2019s (NIA) 2025 Ageing in Canada Survey found that 57% of Canadians aged 50 and older feel somewhat or very lonely, with 43% at risk of social isolation \u2014 levels that have remained virtually unchanged since 2022 (17). For early retirees whose social lives were anchored in their work environment, these risks can intensify quickly.<\/p>\n Financial advisers and retirement coaches encourage people on the verge of retirement to develop a concrete plan \u2014 not only for their finances, but also their time, social connections and sense of purpose.<\/p>\n 6. Difficulty re-entering the workforce <\/p>\n Many early retirees assume that if retirement doesn\u2019t work out, they can simply return to work. The reality is often more complicated.<\/p>\n Age discrimination in Canadian workplaces is a documented challenge. According to a study by Indeed Canada, 14% of all Canadian workers perceive their age as a barrier to employment \u2014 a figure that doubles to 28% among those aged 65 and older (18). A separate report from Access Work Service estimates that approximately 60% of Canadians aged 45 and older have experienced workplace age discrimination (19).<\/p>\n Further, Statistics Canada data confirms the average age of retirement in Canada rose to 65.1 in 2023 \u2014 its highest level since the late 1970s. And the labour force participation rate among Canadians aged 55 and older reached 36.4% in April 2024, up from 25.7% in 2001 (20). While more older Canadians are working longer, re-entering the workforce after stepping away for a period of time is a different challenge.<\/p>\n For early retirees who find they need or want to return to work, a skills or resume gap, or outdated credentials can make the process significantly harder.<\/p>\n What to consider before leaving work prematurely <\/p>\n Early retirement can be immensely satisfying \u2014 but without a solid plan, the excitement of leaving the workforce can turn into lasting regret. Before stepping away, consider the following:<\/p>\n Estimate your retirement needs: Calculate how much money you\u2019ll realistically need every year. Factor in housing, food, transportation, health care, inflation, unexpected expenses and the added leisure costs that often come with more free time. Then extend that estimate across a timeline that could reach into your 90s or beyond. It\u2019s better to overestimate than end up short.<\/p>\n Stress-test your retirement income: Use scenario planning to see how your finances would hold up under different market and economic conditions. Canada\u2019s federal government offers a free Retirement Income Calculator at Canada.ca to help estimate CPP, OAS and RRSP\/RRIF income.<\/p>\n Plan for the health-care gap: If you retire before 65, understand everything the provincial programs cover. Explore private supplemental insurance for vision and prescription costs, apply for the CDCP (if you\u2019re eligible) and factor potential LTC costs into your plan.<\/p>\n Strategize your CPP and OAS timing: Delaying CPP and OAS can permanently boost your lifetime pension income. If your health and other income sources allow, working with a certified financial planner (CFP) to model different claiming scenarios can be one of the most valuable steps you take.<\/p>\n Maintain your purpose and social connection: Identify how you\u2019ll stay active, connected and mentally engaged after leaving work. Part-time consulting, volunteering, taking on board roles or returning to education can all help fill the social and structural void that employment often provides.<\/p>\n Consider phased or partial retirement: Gradually reduce your work hours rather than stopping all at once to ease the emotional and financial transition. This will provide continued income, social engagement and structure. Some employers and self-employment arrangements make this easier than others \u2014 it\u2019s worth investigating early.<\/p>\n Careful planning may not eliminate every risk, but it can significantly improve the odds that your early retirement is sustainable and fulfilling. You want to be sure your that this momentous decision isn\u2019t one you wish you\u2019d made differently.<\/p>\n What Canadians can do right now <\/p>\n If you are thinking of taking a closer look at your retirement readiness, here are some practical next steps:<\/p>\n Check your CPP Statement of Contributions: Log into your My Service Canada Account to review your CPP contribution history and use the government\u2019s online calculator to estimate your future benefit at different ages.<\/p>\n Review your employee benefits: Before you retire, confirm exactly when your employer group benefits end, whether a conversion option exists and what it will cost. Don\u2019t assume your coverage will continue.<\/p>\n Maximize your TFSA: If you retire before 65, a TFSA can be a powerful tool for bridging income needs without triggering CPP clawbacks or affecting OAS eligibility. Because withdrawals don\u2019t count as income, they\u2019re tax-free.<\/p>\n Consult a certified financial planner (CFP): The decisions around CPP timing, RRSP\/RRIF drawdown strategy, OAS deferral and long-term care planning are all connected. A fee-for-service CFP can model scenarios specific to your situation, and won\u2019t push you to purchase financial products.<\/p>\n Build a retirement life plan, not just a financial plan: Think carefully about what your days will look like, who you\u2019ll see regularly and what will give your life structure and meaning. The answer to this question is as important as your portfolio balance.<\/p>\n What To Read Next <\/p>\n Join 19,000+ readers and get Money.ca\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n Article sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Kerry Hannon (1<\/a>); Financial Consumer Agency of Canada (2<\/a>); HOOPP (3<\/a>); BMO Financial Group (4<\/a>); Statistics Canada (5<\/a>); PolicyMe (6<\/a>, 7<\/a>); Ontario Ministry of Long-Term Care (8<\/a>); Nova Scotia (9<\/a>); Canadian Medical Association (10<\/a>); Government of Canada (11<\/a>, 12<\/a>); National Bureau of Economic Research (13<\/a>); Fairstone (14<\/a>); Advisor.ca (15<\/a>); Oxford Academic (16<\/a>); Benefits and Pension Monitor (17<\/a>); Indeed (18<\/a>); Navacord (19<\/a>); Policy Options (20<\/a>)<\/p>\n This article originally appeared on Money.ca<\/a> under the title: The top 6 regrets Canadians have about about their early retirement \u2014 and how to avoid the same mistakes<\/a><\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Woman in distress The dream of early retirement is powerful: more freedom, more time, more life. 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