This is a common question, and definitely one every person should ask themselves sooner or later. 

“Early retirement” is usually defined as retiring before the age of 65, the standard age to receive your CPP benefits.

The idea of retiring in your early 60s, or even 50s, can be an extremely alluring one.  But there are definite pros and cons to consider:

Pros:

• More time to do the things you love with the people you love.
• Take advantage of having a younger body and better health.
• Opportunity to go back to school or move abroad.
• Can even start a new career/open a new business that is personally rewarding but not critical to your financial success. 

Cons:

• Can be a major drain on your finances.  You may not notice it at first…but it could become very apparent in your seventies and eighties.  Retiring early also means dipping into your savings early, reducing them over the long term, or forcing you into riskier investments in order to keep up. 
• Reduced CPP benefits, depending on when you begin taking them. 
• Can actually be a detriment to your mental health.  Some who retire early may find themselves missing the social aspects of work…or may realize they still had more “gas in the tank” than they thought. 

As you can see, there’s a lot to consider when mulling over the possibility of an “early” retirement.  That’s why this is a question you’ll need to ask yourself now or in the not-too-distant future.  Of course, if you have any doubts about whether you can or should retire early, I can help you project the outcome of any and all scenarios!  (Including the middle option of a “phased retirement,” where you gradually leave the workforce in stages rather than all at once.)