Retiring at 60 is five years earlier than the standard retirement age — which means five more years of funding before OAS arrives, a critical CPP timing decision, and a longer retirement to plan for. Here is a complete guide to making it work.
For related benchmarks, also see how to retire at 55 in Canada, how to retire at 65 in Canada, and how much do I need to retire in Canada.
How Much You Need to Retire at 60
The Key Variables
Retiring at 60 means funding approximately 30 years of retirement — from 60 to 90. The main variables:
- Withdrawal rate: Most planners use 3.5–4.0% for a 30-year horizon
- Government income: CPP can start at 60 (reduced) or be deferred; OAS doesn’t start until 65 at the earliest
- Spending target: Based on your desired lifestyle
Savings Needed by Income Target
| Target Annual Income | Less: CPP at 65 + OAS at 65 | Savings Gap | Required Portfolio (3.5% rule) |
|---|---|---|---|
| $50,000/yr | ~$24,000/yr | ~$26,000/yr | ~$740,000 |
| $60,000/yr | ~$24,000/yr | ~$36,000/yr | ~$1,030,000 |
| $70,000/yr | ~$24,000/yr | ~$46,000/yr | ~$1,315,000 |
| $80,000/yr | ~$24,000/yr | ~$56,000/yr | ~$1,600,000 |
Assumes average CPP of ~$850/month and OAS of ~$727/month starting at 65. Adjust for your actual CPP estimate from My Service Canada.
The Bridge Problem (Ages 60–65)
The critical planning challenge at 60 is the 5-year bridge before OAS begins:
- If you take CPP at 60, you get income immediately but at a 36% permanent reduction
- If you defer CPP to 65 (or 70), you draw down savings during the bridge and get a higher CPP later
- OAS doesn’t begin until age 65 regardless — there is no early-start option
A common strategy: draw from RRSP/TFSA/non-registered savings from 60–65, then layer in CPP and OAS at 65.
The CPP Decision at 60
This is the most important financial decision when retiring at 60.
CPP Amounts by Start Age (2026 estimates, based on maximum entitlement)
| Start Age | Monthly Benefit | Annual Benefit | Reduction/Increase |
|---|---|---|---|
| 60 | ~$873 | ~$10,476 | −36% |
| 62 | ~$982 | ~$11,784 | −24% |
| 65 | ~$1,364 | ~$16,368 | Baseline |
| 68 | ~$1,637 | ~$19,644 | +20% |
| 70 | ~$1,937 | ~$23,244 | +42% |
Actual amounts depend on your contribution history. Check My Service Canada for your personal CPP estimate.
Breakeven Analysis
| Compare | Breakeven Age |
|---|---|
| CPP at 60 vs CPP at 65 | ~Age 74 |
| CPP at 60 vs CPP at 70 | ~Age 79 |
| CPP at 65 vs CPP at 70 | ~Age 83 |
Rule of thumb: If you are healthy at 60 and expect to live into your mid-80s or beyond, deferring CPP to 65 or 70 is usually the better math. If you have significant health concerns or need income now, taking CPP at 60 makes sense.
The RRSP Meltdown Strategy
If you defer CPP and OAS, you can use the “RRSP meltdown” approach:
- Ages 60–64: Draw down RRSP strategically (filling your lower tax brackets while income is low)
- Age 65: OAS starts; layer in CPP if deferred to 65 (or continue deferring to 70)
- Age 71: Convert RRSP to RRIF; mandatory minimum withdrawals begin
The advantage: by drawing RRSP in the low-income years of 60–65, you reduce future RRIF withdrawals and minimize OAS clawback risk later.
OAS at 60: Not an Option
OAS cannot start before age 65. There is no exception. However:
- You can defer OAS beyond 65, up to age 70, for a 0.6% increase per month deferred (up to +36% at age 70)
- The OAS clawback (recovery tax) begins at $90,997 of net income in 2026 — relevant if your RRIF withdrawals plus CPP push you into high income territory
At 60, OAS is 5 years away. Plan your bridge accordingly.
Tax Planning for Early Retirement at 60
Income in the 60–65 Window
With no employment income, retiring at 60 typically means lower taxes — a major opportunity:
- Draw RRSP/RRIF strategically to fill the lowest tax brackets
- Earn income in TFSA tax-free (no impact on OAS clawback)
- Realize capital gains in low-income years when the inclusion rate matters less
- Pension income splitting is not available until age 65 for RRIF income
The $15,705 Basic Personal Amount
The 2026 federal basic personal amount is $15,705 — the first $15,705 of income is federally tax-free. If you and a spouse both have $15,705 of income, that’s $31,410 combined that is federally tax-free.
Registered Account Order of Withdrawals
A common optimal sequence:
- Non-registered savings (capital gains may be minimal or zero-cost)
- RRSP (strategic meltdown in low-tax years)
- TFSA last (tax-free growth; no impact on OAS or GIS)
Healthcare Costs After 60
Losing employer benefits at 60 is one of the biggest overlooked costs of early retirement.
What Provincial Health Insurance Covers
- Doctor visits, hospital stays, medically necessary procedures
- Does not cover: prescription drugs (beyond provincial drug programs), dental, vision, paramedicals
Private Supplemental Health Insurance
- Solo plan (age 60–65): approximately $180–$280/month
- Couple plan: approximately $320–$500/month
- Costs rise at each 5-year age band
Check if your employer offers a retiree benefits plan — some defined benefit pension employers include this. Also check if you can join a professional association or alumni group plan, which are often cheaper than individual policies.
Retirement Checklist for Age 60
| Action | Why |
|---|---|
| ☐ Get CPP estimate from My Service Canada | Decide on start age |
| ☐ Model CPP at 60 vs 65 vs 70 with a planner | Breakeven analysis is critical |
| ☐ Arrange supplemental health insurance | Don’t assume employer plan continues |
| ☐ Build 2–3 year cash buffer | Protect against sequence-of-returns risk |
| ☐ Plan RRSP meltdown schedule | Draw down before OAS/CPP to reduce future taxes |
| ☐ Check workplace pension rules | Early retirement may trigger reduced pension or no bridge |
| ☐ Update will, POA, and beneficiary designations | Estate plan |
| ☐ Decide on TFSA withdrawal order | Use TFSA last; refill after income drops |
| ☐ Review OAS deferral options | Deferring to 70 adds 36% |
Key Numbers for Retiring at 60 (2026)
| Item | Amount |
|---|---|
| CPP at age 60 (maximum) | ~$873/month |
| CPP at age 65 (maximum) | ~$1,364/month |
| CPP at age 70 (maximum) | ~$1,937/month |
| OAS earliest start age | 65 |
| OAS at 65 (maximum) | ~$727/month |
| RRSP conversion deadline | Age 71 |
| OAS clawback threshold (2026) | $90,997 net income |
| Federal basic personal amount (2026) | $15,705 |
For context on the standard retirement age, see how to retire at 65 in Canada. To understand your guaranteed government income floor, read about the Canadian retirement income floor. For full withdrawal strategy guidance, visit the retirement planning hub. Use the retirement calculator to model your specific numbers.