Think You Need Millions to Retire Early? Think Again
How part-time income and smart planning can buy you a life of freedom sooner than you think
For decades, retirement was treated like a cliff: one day you were working full-time, the next you were fully retired, living off savings, a pension, or both.
But increasingly, that binary model is breaking down. More Canadians—especially professionals, business owners, and entrepreneurs—are asking a different question:
What if I don’t want to retire completely? What if I just want more freedom?
That’s the promise of semi-retirement: a phase where you reduce hours, shift to consulting, or work on your own terms, while beginning to live more like you're already retired.
It’s not just possible. In many cases, it’s smarter—both financially and emotionally—than the all-or-nothing approach.
But it does take planning.
Why Semi-Retirement Appeals to a New Generation
For many, the appeal of semi-retirement isn’t just about income. It’s about control.
You’ve spent years building a career, a business, or a body of expertise. Walking away completely might feel like a loss—not a win.
Semi-retirement lets you keep your edge while reclaiming your time. You can choose projects, cut back on hours, or focus on work that energizes you rather than drains you.
Emotionally, this eases the transition. Financially, it can be even more powerful.
Because if you can earn even a modest income in your 60s—or 50s, if you’re getting an early start—you dramatically reduce the pressure on your portfolio and delay withdrawals. That’s a win-win.
Bridge the Gap: Income Planning for the “In Between” Years
One of the biggest challenges with early or semi-retirement is the gap between your working years and when traditional income streams kick in.
Most Canadians won’t start receiving full CPP until age 65. Company pensions (if you’re lucky enough to have one) often don’t start until then either. And while RRSPs can technically be accessed earlier, drawing them down too soon may trigger taxes and compromise long-term income.
So how do you bridge the gap?
Here are three proven strategies:
Part-time consulting or freelance work. Many professionals find they can generate $25K–$50K a year working a few days a week. That can cover living costs and keep you engaged—without full-time stress.
Rental income or dividends. Income-producing assets like real estate, dividend-paying stocks, or private credit funds can help cover fixed costs without needing to sell assets.
TFSAs as an income buffer. Unlike RRSPs, TFSA withdrawals are tax-free. Using your TFSA to cover early retirement years is an efficient way to smooth income and reduce taxes.
Healthcare and Benefits: The Overlooked Risk
One common blind spot in early retirement plans? Healthcare.
Leaving full-time work often means losing employer-sponsored health and dental benefits. That can be manageable at first, but becomes more significant with age.
Before semi-retiring, consider:
Buying private insurance to cover extended health needs
Budgeting for out-of-pocket medical and dental expenses
Factoring in drug costs if you have ongoing prescriptions
If you or your spouse has access to retiree benefits or union coverage, know exactly what’s covered—and what’s not.
Time Is a Currency Too
One of the most powerful aspects of semi-retirement is psychological.
In full retirement, some people struggle with the sudden lack of structure. Others find purpose in travel, hobbies, or volunteering.
But semi-retirement gives you a runway. You don’t need to figure it all out at once. You get to test new routines while maintaining a sense of purpose through work you enjoy.
It also gives you more years of better health to enjoy life on your terms, rather than waiting until age 65 or beyond.
How Much Is “Enough” for Semi-Retirement?
This is the question that stops most people from taking action: “Do I have enough?”
But it’s the wrong question.
A better question is: Can I cover my baseline expenses with a mix of part-time income and portfolio yield, without touching principal?
If the answer is yes, then semi-retirement may already be possible.
Start by:
Listing essential monthly costs
Calculating how much income your investments generate today
Estimating realistic part-time income
You may be closer than you think.
And if there’s a gap, now you know what to work toward—not some vague asset goal, but a clear income target tied to your lifestyle.
Bottom Line: Freedom Is Closer Than You Think
You don’t need to wait until 65 to start living better. You don’t need to sell your business, shut down your career, or have a $2 million portfolio.
You just need a plan.
Semi-retirement isn’t about quitting—it’s about reclaiming. Reclaiming your time, your energy, and your purpose, while still maintaining financial control.
In today’s world, the question isn’t “When can I retire?” It’s:
“When can I afford to work less and live more?”
For many Canadians, the answer could be sooner than they ever imagined.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.