Are you near the top or bottom of Canada’s retirement wealth pyramid — and does it even matter?

Multigenerational family gathering

If you’re mapping out your retirement, you probably have a number in your head. As of 2026, most Canadians believe they’ll need an average of $1.7 million to retire comfortably — up from $1.54 million the year before — according to the latest annual retirement survey by BMO Financial Group (1). Yet more than 1 in 3 say they’re unlikely to ever hit that target (2).

But here’s the more unsettling truth: When you compare that goal to what Canadian senior households actually have, the gap between aspiration and reality becomes very clear.

Using data from Statistics Canada’s Survey of Financial Security (SFS), a major study of Canadian household assets, debts and net worth last conducted in 2023, here’s a breakdown of the six wealth levels for retirement-age Canadian families — and what each one means for your future (3).

Seniors in the bottom quarter of the wealth distribution in Canada face real financial fragility. According to Statistics Canada, the median net worth of all Canadian families stands at $519,700 — which means senior households at the 25th percentile or below are working with a fraction of that (4).

This group is most likely to depend heavily on government programs such as the Canada Pension Plan (CPP), Old Age Security (OAS) and, for those with very low income, the Guaranteed Income Supplement (GIS).

In 2025 (the last tax year), the maximum CPP retirement pension at age 65 was $1,433 per month. OAS maxes out at $740 per month for those under 75 and $814 per month for those 75 and over. The GIS provides an additional monthly payment of up to roughly $1,087 for low-income single seniors.

If you’re approaching retirement with very little in savings, the most important step is to start building now, no matter how small the contributions. Even modest, automated monthly deposits to a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) can grow substantially over time.

This range puts you below Canada’s median family net worth of $519,700 (5), which means roughly half of all families — including many senior families — have more wealth than you. You’re not financially ruined, but retirement may feel tight.

Many Canadians in this bracket carry a mortgage into their later years — and statistics show the number of retirees who go into their senior years with debt is growing. In 2019, just over half (56.7%) of senior-led families reported being debt-free; however, two decades earlier, the number of senior-led families reported being debt-free was closer to 72.6% (6).

In this income bracket, cutting costs where possible really matters. Compare rates for your home and auto insurance annually, trim recurring subscriptions and review your budget. This monitoring of your expenses could help you find extra funds you can put towards building an emergency fund or accelerate debt repayment.

Senior households in this range — roughly between the 50th and 90th percentiles — have hit the median mark and are approaching more comfortable territory. For context, the top 10% of all Canadians (regardless of age) have a net worth above $865,200, according to data compiled from Statistics Canada’s survey results (7).

But a critical caveat: a large chunk of this wealth is likely locked in your home. In 2024, average Canadian household net worth recovered to over $1 million, yet real estate makes up over 50% of that figure — meaning your balance sheet may look healthier than your actual cash flow (8).

If much of your net worth is tied to home equity, think about how you’ll unlock it. Options include downsizing, a reverse mortgage, or converting property equity into investable assets inside your RRSP, Registered Retirement Income Fund (RRIF) or TFSA before you retire.

Reaching this bracket puts you ahead of the majority of Canadians. You’re close to — or at — the retirement savings target most Canadians say they need (9).

But this is also when lifestyle creep becomes a serious risk. As your retirement number approaches your goal, the temptation to spend more can quietly erode the financial cushion you’ve worked to build. Living below your means in the final years before retirement can make a significant difference to your long-term security.

Budgeting tools, registered accounts and regular financial check-ins with a certified financial planner (CFP) are especially useful at this stage. An advisor can help you project whether your current pace will be enough — accounting for inflation, taxes, CPP timing and OAS clawback thresholds.

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You’ve hit the magic number — or surpassed it. The top 10% of Canadian families hold more than half of all net wealth in the country, according to the Parliamentary Budget Officer (PBO) (10). Only about 5% of all Canadians across all age groups have a net worth exceeding US$1 million (roughly C$1.4 million at current exchange rates), according to the 2025 UBS Global Wealth Report (11).

For wealthy retirees, the focus shifts from accumulation to preservation and tax efficiency. In Canada, OAS benefits begin to be clawed back once net income exceeds $93,454 (2025), and are eliminated entirely above $152,062 (12). A tax-efficient withdrawal strategy — drawing from your TFSA, RRSP/RRIF and non-registered accounts in the right sequence — can make a meaningful difference over a 20 to 30-year retirement.

Portfolio diversification is equally important. Canadians in this bracket may want to consider a mix of equities, fixed income, real estate investment trusts (REITs), and other alternative assets to protect against inflation and sequence-of-returns risk.

According to the PBO’s High-net-Worth Families Database, there were approximately 169,400 families in Canada’s top 1% in 2023, each with a net worth of at least $7.4 million (13). By late 2024, that threshold had edged up to $7.5 million (14).

At this level, retirement planning is less about budgeting and more about asset allocation, tax optimization and estate planning. Life insurance plays an important role for ultra-high-net-worth Canadians looking to preserve their estate. In Canada, life insurance death benefits are generally received tax-free by beneficiaries, making them a powerful legacy planning tool.

Working with a tax adviser and estate lawyer alongside your financial planner is essential. Strategies such as family trusts, corporate structures and charitable giving can help minimize probate, reduce taxes on death and ensure wealth is transferred efficiently to the next generation.

For most Canadians, the brutal reality is the amount saved for retirement is less than ideal. BMO’s 2026 survey found 36% of Canadians believe they’re unlikely to reach their $1.7 million goal — up from 29% the year before (15). Meanwhile, the median Canadian senior family’s net worth, as measured by Statistics Canada, is considerably lower than that target (16).

The wealth pyramid isn’t meant to discourage. It’s meant to give you a realistic picture — and a strategic direction. Whether you’re in the first tier or approaching the fifth, knowing where you stand is the first step toward knowing what to do next.

The BMO Annual Retirement Survey was conducted by Pollara Strategic Insights with an online sample of 1,500 adult Canadians between November 4 and 10, 2025. Results from a random sample of this size can be considered accurate to within ±2.5%, 19 times out of 20. Results have been weighted by gender, age and region using the latest census data.

— with files from Romana King

BMO Financial Group: Annual Retirement Survey 2026 (1, 2, 9, 15); Statistics Canada: Survey of Financial Security, 2023 (3, 4, 5, 16); Wealth Awesome: Net Worth by Age in Canada (6); The Kickass Entrepreneur: Net Worth Percentile Calculator for Canada (7); Blueprint Financial: Average Net Worth in Canada by Age (8); Parliamentary Budget Officer: Estimating the Top Tail of the Family Wealth Distribution in Canada — 2025 Update (10, 13, 14); Yahoo Finance Canada: 2025 ‘Retire Comfortably’ Number (11); Government of Canada: Old Age Security payment amounts (12)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.