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If you plan to retire, how much do you think you’ll need? Based on recent studies, the average Canadian feels they need around $1.42 million for a comfortable retirement.

Several sources state the following key findings:

  • A February 2024 BMO survey found that Canadians believe they need $1.7 million for retirement.

  • The Fidelity Canada 2025 Retirement Report indicates that people over age 45 feel they’ll need $1.02 million. This is a significant increase from the CA$447,000 cited in the same report from 2005.

  • A more recent 2025 BMO Retirement Survey revealed an updated figure of $1.54 million — showing that potential retirees have a growing awareness of the rising costs of retirement, even if this figure is a bit lower than the previous year.

Note, these figures represent what Canadians perceive they’ll need, which may differ from the actual amount required. Many financial advisors recommend a range of 60% to 80% of your pre-retirement income to sustain your lifestyle after retirement.

The fact that the target has more than doubled in 20 years means the vast majority of Canadian adults are falling well short of this million-dollar benchmark and are hurtling toward difficulty in their golden years. Here’s why, and what you can do to help yourself reach that figure.

Although most Canadians agree that they require at least seven figures to retire comfortably, a relatively small portion of the population is on track to meet this target.

As of early 2025, the number of Canadians with a net worth of over US$1 million reached 2,098,000 and represents approximately 5% of the country’s population, according to the 2025 UBS Global Wealth Report. And while this number is projected to grow by 63% to more than 3.3 million by 2027, keep in mind that figure includes people of all ages and wealth levels, not only those nearing retirement.

Some Canadians may not prioritize retirement savings, as many face barriers that make it difficult to set money aside, including rising cost of living and housing, student loan debt, as well as employment or pension insecurity. Even those who are diligently saving find themselves challenged to keep up with the growing cost of a comfortable retirement.

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Read more: Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings

Although 95% of Canadians aren’t millionaires, many could meet that target eventually if they start investing at a young age.

For example, a 20-year old needs to invest just $330 a month into an asset class that delivers a steady 7% annual return to reach $1.26 million by the time they turn 65. Having the luxury of time significantly boosts your chances of becoming a millionaire.

It’s never too late to start saving — but the investment is significantly greater. For instance, a 50-year-old with nothing saved for retirement would need to contribute $3,975 each month for 15 years for a total of $715,500 ($3,975/month times 12 months/year times 15 years). The remaining $549,500 is the result of compound growth of the investment over time.

Saving $1.26 million doesn’t guarantee a comfortable retirement for everyone. For example, if your net worth is $1 million but your annual living expenses are $200,000 or $300,000, you need much more than $1 million in savings to continue living the same lifestyle in retirement.

In fact, two thirds of millionaires don’t consider themselves “wealthy” and half of them say their financial planning needs improvement, according to another study by Northwestern Mutual. In short, being a millionaire doesn’t mean you’re ready for retirement.

If you live in an area with a lower cost of living, your target might be smaller. Newfoundland and Labrador, the Prairies and the Atlantic provinces might be ideal for retirees looking to minimize their expenses.

Try using a retirement calculator or consulting a financial planner to determine your personal target. With enough time and meticulous planning, you can be on track for almost any type of retirement you desire.

1. BMO: BMO Annual Retirement Survey: Millennials Believe They Need About $2.1M To Retire Compared to the National Average of About $1.7M (Feb 7, 2024)

2. Fidelity: Fidelity Canada Retirement Report (Jun 10, 2025)

3. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)

4. UBS: Global Wealth Report 2025 (Jun 18, 2025)

5. Northwestern Mutual: Only One in Three American Millionaires Feel “Wealthy” and Nearly Half Say Their Financial Planning Needs Improvement, According to Northwestern Mutual Planning & Progress Study (Sept 4, 2024)

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