Is it even possible to retire at 65 anymore? Canadians in big cities weighed in, and things got dark

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“While living in an expensive Canadian city, do you think you can afford to retire at 65?”

This question received hundreds of answers in less than a day after Reddit user u/Steam20 posted it on the subreddit r/AskACanadian.

Most responses ranged from worrying to, well, really, really depressing. It’s clear that retirement, as our parents knew it, no longer exists in Canada.

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“I’m 42. At my current trajectory, I can expect to retire comfortably at age 275,” reads the top-rated one on u/Steam20’s post. “I’ll be lucky if I can retire at 95,” reads another.

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“Looking at the ‘projected value at age 65’ chart every year on my RRSP report, I just cry a little. And I’ve been maxing out for the past four years. Still basically nothing,” one person shared.

Though a few older Canadians shared their success stories and advice to save for retirement, things quickly got darker.

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“I will work until I die… not by choice,” one Reddit user said. Some others echoed the same sentiment, bringing up Canada’s Medical Assistance in Death (MAID) law.

Someone even said retiring at 65 was now “only for people who have inheritances when their parents or other family members die.”

But are they wrong?

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Living in a major Canadian city is already expensive, and in recent years, food and housing costs have skyrocketed. Those looking to buy a home are intimidated by substantial down payments and high mortgages with bloated interest rates. Others are dealing with soaring rent.

A recent study released by Sambla, a loan and mortgage comparison site based in Sweden, provided a snapshot of how expensive it could be to retire in different countries.

The report ranked the 20 most expensive countries to retire in, and unfortunately, Canada placed pretty high at #6. With an average retirement age of 60 and an average life expectancy of 83, Sambla concluded that Canadians would need to save around £178,175 (C$300,500) to retire.

The standard age to retire in Canada is 65, but you can retire anytime if you feel financially secure.

Statistics Canada data shows that Canadians are, on average, working for longer periods before retiring. In 1998, the average age of retirement for public sector, private sector, and self-employed workers was 60.9 years. Now, it is 65.1 years.

Statistics Canada

The government of Canada has an official retirement income calculator if you want some insight into your future.

Do you see yourself retiring in Canada? What age do you see it happening?

Share your success story with us if you’ve already retired, or tell us how to plan to navigate retirement in future, especially if you don’t have an inheritance, by emailing us at [email protected].

With files from Isabelle Docto