Skip to main content

How to Retire at 60 in Canada: Savings, the CPP Decision and the Years Before OAS

Updated

At 60 the CPP retirement pension can start, so the main questions are whether to take it now and how to cover the years until OAS at 65. This page covers the savings needed, the CPP decision and taxes before OAS. It is part of the early retirement hub.

How much you need

From 60, savings may need to last 30 years or more. That is close to the period the 4% rule was tested on (money lasting at least 30 years in US historical data), so these examples use 4%. For a longer retirement, a lower rate leaves more margin.

Spending covered by savingsTarget at 4%
$30,000$750,000
$50,000$1,250,000
$70,000$1,750,000

How much to save each month

What it takes each month to have the $50,000-a-year target by 60, if you start at each age with no savings and earn an assumed 7% real return, compounded monthly:

Start saving atYearsA month
3030$1,025
3525$1,543
4020$2,400
4515$3,944

A lower return means a larger monthly amount; the FIRE number page shows how the time to reach a target changes with the savings rate.

When CPP and OAS start

You can start the CPP retirement pension any time from 60 to 70 (65 is the standard age): it is 0.6% lower for each month before 65 (up to 36% less at 60) and 0.7% higher for each month after (up to 42% more at 70), with no gain from waiting past 70; applying after 65, you can backdate the start up to 11 months, but not before the month after your 65th birthday. Stopping work at 60 also lowers the CPP pension itself; the early retirement hub shows by how much.

The CPP decision at 60

Start CPP atMaximum a month (pension starting in January 2026)
60$964.90
65$1,507.65
70$2,140.86

Starting at 60 instead of 65 pays more in total until about age 74; after that, the later start is ahead. Starting at 70 instead of 60 catches up at about 78. CPP at 60 vs 65 vs 70 covers the trade-offs, including health and other income.

OAS can’t start until 65, so retiring at 60 leaves 5 years before it. In those years, the basic personal amount ($16,452 federally for 2026) means a modest income from RRSP withdrawals and CPP is taxed lightly.

The early retirement hub covers health coverage once workplace benefits end and the risks to plan for.

Sources

The figures and rules on this page come from these sources, last checked against them between September 22, 2026 and September 30, 2026. How we check facts.