How Much Do You Need to Retire in Canada?

How much do I need to save for retirement? It’s the million-dollar question – literally. We’ve all asked it or wondered it at some point. Will I have enough to retire? How do I know how much I need? Do I really need $1 million?

Truth is, figuring out how much you need to retire will always be based on your own personal calculation. While we can throw numbers around – like $1 million – and offer various “rules of thumb” for advice, you’ll never know how much you need until you look closely at your own budget, expenses, and expectations.

That said, there are some ways to get a ballpark estimate of how much you might want to save. Below we’ll look closely at some data from Statistics Canada and help you get a rough idea of what other Canadians have saved for retirement.

How much money do you need to retire in Canada?

A few years ago, we estimated that a Canadian couple retiring at 65 would need at least $1.21 million to cover roughly $48,453 in annual expenses¹ over a 25-year retirement. That figure was based on the 2019 Survey of Households, which found that couples over 65 spent, on average, just under $50,000 per year. At the time, it was a reasonable benchmark—especially if you assumed stable inflation and modest increases in living costs.

But the world has changed since 2019. Inflation, which averaged 3.4% between 2020 and 2021² and has stayed elevated since, has significantly driven up the cost of everything from groceries to housing. It’s no surprise, then, that Canadians have adjusted their expectations.

According to a 2025 BMO Retirement Survey, Canadians now believe they’ll need about $1.54 million to retire comfortably. That’s more than $300,000 higher than our earlier estimate, reflecting both rising prices and a growing awareness that retirement may last longer—and cost more—than once thought.

The older $1.2 million estimate still serves as a useful baseline, especially for those with modest lifestyles or lower living costs. However, the new data makes it clear that retirees may want to aim higher if they want to feel more comfortable preserving their standard of living throughout retirement. For many Canadians, this means reassessing their savings goals, factoring in higher healthcare and housing costs, and perhaps keeping a portion of their portfolio invested in growth assets to stay ahead of inflation.

How to calculate how much you need to retire in Canada

If $1.2 (or $1.54) million feels like too much (or too little), there are some rules of thumb that can help you calculate a more accurate number for how much you need to retire in Canada.

One popular method is the 70% rule. According to this rule, you’ll need 70% of your pre-retirement household income each year in retirement for 25 years. For example, if your household brings in $150,000 in the year before you retire, then you’ll need $105,000 annually. Multiply that by 25 years and your retirement savings goal would be: $2,625,000.

That’s a lot of money. But it might be accurate if you’re spending roughly $105,000 each year on your typical household expenses, like food, utilities, insurance, and transportation.

If $2 million is out of reach, you can use a withdrawal rule, like the 4% rule. This rule states that you should withdraw only 4% of your retirement savings annually for at most 25 years. For example, if you’ve saved $400,000, this rule would recommend withdrawing only $16,000 per year (not counting pensions and other additional income). The advantage of this rule is that it starts from what you have, rather than what you don’t.

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How much money does the average Canadian retire with?

Data from Statistics Canada tells us that Canadians in economic families between the ages of 55 and 64 have roughly $645,599 in retirement savings and $163,600 in financial savings. That would come out to a total of $809,100 saved for retirement.³

Individuals (those not in an economic family) had slightly more than half what couples had saved: $377,300 in retirement savings and $69,200 in financial assets for a total of $446,500 saved.

Based on this information, we can assume the average Canadian couple is approaching retirement with roughly $800,000 to $810,000 in total retirement savings, while individuals will likely have $445,000 to $450,000.

Possible Retirement Income Sources

When planning for retirement in Canada, it’s important to understand where your income will come from and when you can access it. Most retirees rely on a mix of government benefits, personal savings, and registered accounts to cover their expenses. Here’s a breakdown of the key income sources and when they typically begin:

Canada Pension Plan (CPP) – Starts at Age 60

The CPP provides monthly income based on your contributions during your working years. You can start taking it as early as age 60, though doing so will reduce your payments permanently. Waiting until 65 or later increases your monthly benefit, so timing should depend on your health, financial needs, and other income sources.

Old Age Security (OAS) and Guaranteed Income Supplement (GIS) – Start at Age 65

At 65, you become eligible for OAS, a government pension available to most Canadians who have lived in the country for at least 10 years after age 18. The GIS provides additional income for low-income seniors receiving OAS. These two programs form a critical base layer of retirement income for many Canadians.

Registered Retirement Savings Plan (RRSP) / Registered Retirement Income Fund (RRIF) – Conversion by Age 71

Your RRSP grows tax-deferred during your working years, but by December 31 of the year you turn 71, you must convert it to a RRIF or purchase an annuity. A RRIF provides scheduled withdrawals, which become taxable income each year. Many retirees begin drawing from their RRSPs earlier, especially if they need extra income before CPP and OAS start.

Questions to ask when calculating how much you need to retire

The numbers above will give you a good estimate, but they might not be realistic for you. Depending on your lifestyle and personal income, you might need more than $1.2 million, or you could live comfortably with less.

To fine-tune these numbers for yourself, here are some questions you can ask: 

• What are my retirement goals? Your retirement lifestyle will profoundly affect how much you need to save. For example, an active retiree who frequently travels and engages in hobbies will likely need to save more than someone who expects to stay put. For those aiming to retire earlier than the traditional age, the FIRE (Financial Independence, Retire Early) movement advocates for aggressive saving and investing strategies to achieve financial independence sooner.

• Will you work in retirement? Second jobs, remote work opportunities, or consulting work might be a way to help bolster your retirement savings.

• Will you live at the same residence? Downsizing, or moving to a less expensive part of your province or territory (such as a rural area or smaller town) could help you spend less and live longer on your retirement savings.

• How much debt will you be carrying? Ideally, you won’t have any debt when you retire. But if you do, you’ll need to factor in how much you’ll pay in overall interest—and how that will affect how much you need to save.

• What expenses will you carry over into retirement? For example, groceries, utilities, entertainment, dining out, and clothing will likely stay the same.

• What expenses will retirement eliminate? Many retirees pay off their mortgage before retirement, in which case you can eliminate a major expense from your budget. Other expenses that could disappear in retirement include commuting for work, life insurance premiums, and saving for retirement.

• What new expenses will retirement likely bring on? While retirement itself doesn’t automatically create new expenses, getting older will. You might pay more for healthcare or long-term care, for instance.

Is a million dollars enough to retire in Canada?

Old financial wisdom used to say that a Canadian couple could retire comfortably with a $1 million nest egg (an individual could retire with $500,000).

But this advice might be outdated and could mislead some Canadians into thinking they have more than enough. As we mentioned above, a couple retiring at 65 will likely need more than $1.2 million to retire comfortably. That is, if they expect to live for another 25 years.

But do the math for yourself. Your retirement goals and lifestyle might allow you to live happily on less than $1 million in retirement savings, especially if you work past the normal age of retirement (64 to 65). It’s always wise to make a retirement plan for your specific household, as there’s only so much you can learn from rules of thumb and general advice.

Retiring in Canada FAQs

How long will $300,000 last me in retirement?

It depends on how much you expect to spend per year. If you expect to spend $50,000 per year (the avg per the Survey of Households survey), then $300,000 will only last you 6 years. But if you can shave your expenses down to $30,000 per year, $300,000 should last you a decade. Hopefully you’ll also be generating other income during this time from your retirement accounts that will make things a little more comfortable.

How much does the average Canadian have in RRSP at retirement?

The average Canadian has about $283,000 in RRSPs and RRIFs by retirement age (65 and older). For all age groups combined, the average RRSP balance is significantly lower, at around $144,613, highlighting how savings typically grow substantially in the years leading up to retirement.

What % of Canadians have $1 million?

About 6% of individual Canadians have a net worth of at least C$1 million, defining high-net-worth individuals in Canada. In other words, roughly one in every sixteen Canadians falls into the millionaire category based on net worth.v