What changes if I retire at 63 instead of 65?
A retirement date changes how many years employment income supports your spending, and how long savings need to last. Put both ages beside each other using the same savings, spending and benefit assumptions.
Open this made-up exampleRead this example or use the basic calculator without an account. Review and confirm the inputs and assumptions before calculating. Saved plans and advanced tools have their own access.
One change. Two projections.
This is Alex’s made-up situation in Ontario: born in 1966, earning $90,000 a year before retirement. These numbers show how the tool works. They are not a prediction for you.
Retirement age: 63 in the baseline; 65 in the alternative. Yearly household spending after tax: $60,000 in both versions, in 2026 dollars, excluding contributions.
- Starting savings
- RRSP $550,000 · TFSA $100,000
Non-registered $50,000 · cash $10,000 - Benefits in both versions
- CPP $12,000 a year at 65
Full OAS from 65; 40 residence years - Assumptions in both versions
- 2.1% inflation · 5% annual return
Fixed return, no simulated market path
| Measure | retire at 63 | retire at 65 |
|---|---|---|
| First projected shortfall | 2049 | 2055 |
| End-of-plan position after tax In 2026 dollars | -$489,592 | -$251,001 |
| Projection ends | 2061 | 2061 |
The CPP amount is held as entered; stopping work earlier may reduce the actual benefit. Review your statement assumptions.
Both versions have a projected shortfall under these assumptions. The comparison shows when it begins. A negative end-of-plan position is a gap, not money left for family. Income tax and benefit exclusions matter; review them before changing spending.
Assumptions and calculation evidence
A first projection for one or two Canadian adults: employment, a defined-benefit pension, CPP/QPP, OAS, RRSP/RRIF, TFSA, non-registered investments and cash. No corporations, property, debts, children, benefit-entitlement history, LIRA/LIF or planned extra contributions. GIS, Allowance and refundable benefit payments (including Ontario GAINS and Trillium) are not included; missing benefits can make a projected shortfall look larger. Review eligibility and payment history before changing spending. Quebec employment requires explicit confirmation of Quebec payroll contributions; cross-province employment is outside this first-calculation scope. Excluded situations need additional facts and supported-case review.
Inflation 2.1%; invested return 5.0% nominal each year; uninvested cash 2%. These are assumptions, not forecasts. Invested accounts use 40% fixed income and 60% equity for tax treatment. Pension splitting and the standard withdrawal/contribution order are enabled. No extra contributions were supplied; surplus uses that order and the stated contribution room.
Alex: OAS uses 40 years of residence; opening TFSA room 0 CAD and RRSP room 0 CAD.
- Engine version
- a5245196fe9c440cac227184b300f58f54e073958c8bd49c259815cd391dec13
- Tax-rate fingerprint
- cf34ad9e08777f2c1f6b0429a2842c2db35669bccffda07886ee8a3081fc868f
- Calculation input fingerprint
- 3bc5d74afe4e5552e29f8d0b4f4d725b30b3c5ebe2c29cf3fe16ae2bcda11109
These results were generated from this guide’s synthetic inputs using the Glacier engine. Opening the example does not run a calculation. Reviewing and calculating it again uses the available engine and rules at that time.
Download the made-up inputs ↗Keep the question simple.
Keep the starting point the same.
Use the same income, savings, spending and benefit details in both versions.
Change the retirement age.
Compare age 63 with age 65. Starting CPP/QPP or OAS is a separate choice; this example keeps those ages unchanged.
Read the trade-off.
Check whether spending is covered, when a shortfall begins, and what remains after tax. Open annual detail before drawing a conclusion.
Have these facts ready.
- Birth date and province or territory
- Employment income and the two retirement ages
- Savings by account type and owner
- CPP/QPP statement amount, benefit start ages and OAS residence years
- Annual after-tax spending, return and inflation assumptions
Know the limits.
- This first calculation excludes property, debts, corporations, children, LIRA/LIF and planned extra contributions.
- GIS, Allowance and refundable benefit payments are excluded. Missing benefits can make a projected shortfall look larger.
- Returns and inflation are assumptions. A projection is not a promise or a personal recommendation.
- The CPP amount is held as entered in both versions. Stopping work earlier may reduce the actual amount; review the assumptions behind your CPP statement.
Bring the question
to your numbers.
Start with the made-up example. Replace the inputs with your own only when you are ready, then review the scope and assumptions before calculating.
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Projections and education, not personalized investment advice. This made-up example is not a plan for you.