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Em Norton
Updated Aug 14, 2025
Think retiring early is out of reach because you don’t make a six-figure salary? It takes careful planning and discipline, but that doesn’t mean it’s impossible.
According to Statistics Canada, in June 2023, just 21.8% of Canadians aged 55 to 59 years reported that they were either completely or partially retired. Of those aged 60 to 64 years, 44.9% were retired.
This stat means that just over one fifth of Canadians aged 55 to 59 — proving it’s much harder the younger you are. So if you want to join that younger cohort of retirees but don’t have a high income, you’ll likely need to make some smart money moves (and a few sacrifices).
Here are practical steps you can take today to get on the road to retiring early.
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1. Work with a financial advisor
Industry studies have shown that professional financial advice can add up to 5.1% to your portfolio returns.
But beyond greater growth, advisors can also help you navigate complex topics such as tax efficiency strategies, optimal retirement withdrawal timing and how to make suitable investments for your goals and risk tolerance.
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While budgeting may seem too boring to be ‘savvy,’ it truly is a key financial tool. It’s a powerful way to understand your current finances, rein in your spending if needed and then shape your financial plan accordingly. Tracking your expenditures against your budget can even reveal new obvious avenues for saving.
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After tracking and assessing your budget over a few months, you can use that data to estimate your future retirement budget — setting a clear target. You’ll want to review this retirement budget periodically and make adjustments as needed.
3. Automate your investments
To join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save more than the 15% that’s often suggested. When it comes to retiring early, that number might end up much closer to 75% of your income.
Regardless of the specific retirement age you’re aiming for, you’ll need discipline to reach any early retirement goal. Automating your investments is an easy way to make that process happen in the background, without much extra thought.
You can make RRSP contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account, like a a discount brokerage account with CIBC Investors’ Edge.
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When you set up a Regular Investment Plan (RIP), you can automatically deposit funds from your bank account into your Investor's Edge account on a schedule you choose (e.g., weekly, monthly) to take advantage of dollar cost averaging.
Pay no account fees for RRSPs with a balance of $25,000 or more and TFSAs with a balance of $10,000 or more. For non-registered accounts, the platform waives maintenance fees if the account balance exceeds $10,000.
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If you’re carrying a large balance on a credit card or any other high-interest debt, it will be hard to retire early. The savviest move is not to carry a balance at all — but life happens, so if you do have one, paying it down should be your top financial priority (along with building an emergency fund).
If you have substantial equity in your home, consider consolidating your debts and paying them down with a debt consolidation loan.
Loans Canada can help you avoid having multiple high interest loans by finding you a single, consolidated loan at a lower rate. Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month which can both ease your interest costs and improve your credit score.
You can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by different lenders.
You don’t need a minimum credit score or annual income to receive personalized loan offers.
Once you free yourself from monthly interest payments, you can move on to the next step.
5. Maximize your biggest asset
Your biggest asset is likely your stream of future earnings, so to retire early you’ll want to maximize this asset.
While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig.
Yes, retiring early takes planning and dedication, but not necessarily a six-figure income.
Sources
1. Statistics Canada: Majority of people planning to retire would continue working longer if they could reduce their hours and stress (Aug 1, 2023)
2. Fidelity: 3 ways ana advisor can help make a difference (Jan 30, 2025)
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Em Norton
Content Specialist
Em Norton is a Staff Writer for Money.ca. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.
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