It’s one of the most common questions people ask as they get closer to retirement.

“Can I afford to retire early?”

For some, “early” means 60 instead of 65.

For others, it means leaving the workforce at 55, selling a business, or simply choosing to work less.

The good news is that early retirement is possible for many people.

The challenge is that it’s not simply a question of how much you’ve saved.

It’s a question of whether your financial plan can support a longer retirement.

Retirement Is Becoming Longer

Not long ago, retirement often lasted 10 to 15 years.

Today, it’s common for people to spend 25 or even 30 years in retirement.

According to Statistics Canada, a 65-year-old Canadian can expect to live, on average, into their mid-80s, with many living well into their 90s. For couples, there’s a good chance that one spouse will live even longer.

That means retiring five years earlier doesn’t just mean five fewer years of work.

It could mean five more years of drawing income from your portfolio.

It’s Not About Your Number

Many people focus on one question:

“How much money do I need?”

But retirement isn’t determined by a magic number.

It’s determined by cash flow.

What matters is whether your investments, pensions, and other income sources can reliably support the lifestyle you want—for decades.

Someone with a $2 million portfolio may be able to retire comfortably.

Someone else with the same portfolio may not.

The difference often comes down to:

• Annual spending
• Other sources of income
• Taxes
• Debt
• Lifestyle expectations

Your portfolio doesn’t fund retirement.

Your income does.

The Cost of Retiring Early

Retiring before age 65 can affect more than your employment income.

It may also mean:

• Delaying or reducing CPP and OAS decisions
• Funding more years before government benefits begin
• Covering private health or dental expenses if employer benefits end
• Drawing from RRSPs or non-registered investments sooner

These aren’t reasons not to retire early.

They’re simply factors that should be part of the plan.

The Biggest Risk Isn’t Usually the Market

People often assume the biggest threat to early retirement is a market correction.

While market volatility matters, one of the biggest risks is actually running out of flexibility.

Unexpected healthcare costs.

Higher inflation.

Helping children financially.

Supporting aging parents.

Living longer than expected.

A good retirement plan doesn’t just work if everything goes perfectly.

It should be resilient enough to handle life’s surprises.

Stress-Test the Plan

One of the most valuable things you can do before retiring early is test your plan against different scenarios.

Ask questions like:

• What if markets decline shortly after I retire?
• What if inflation stays higher than expected?
• What if I live to 95?
• What if I spend more in the first ten years of retirement than planned?

A retirement plan shouldn’t only work under ideal conditions.

It should work under realistic ones.

Retirement Doesn’t Have to Be All or Nothing

Many people picture retirement as flipping a switch.

Working one day.

Not working the next.

But retirement is becoming much more flexible.

Some people choose to:

• Work part-time
• Consult in their previous profession
• Sit on corporate boards
• Start a small business
• Take on passion projects that generate some income

Even modest income during the early years of retirement can reduce pressure on your portfolio and provide greater flexibility over the long term.

The Better Question

Instead of asking:

“Can I afford to retire early?”

Try asking:

“Can my financial plan support the lifestyle I want for the rest of my life?”

That’s a much more useful conversation.

Because retirement isn’t just about leaving work.

It’s about replacing your paycheck with reliable, tax-efficient income while maintaining the freedom to live the life you’ve worked so hard to build.

The Bottom Line

Early retirement isn’t reserved for a select few.

For many people, it’s achievable.

But the decision shouldn’t be based on a single portfolio balance or retirement age.

It should be based on a comprehensive plan that considers:

• Cash flow
• Taxes
• Investment strategy
• Longevity
• Healthcare
• Inflation
• Flexibility

The goal isn’t simply to retire as early as possible.

It’s to retire with confidence that your wealth can support the life you want—today, tomorrow, and decades into the future.