Middle aged couple <\/p>\n
If you plan to retire, how much do you think you\u2019ll need? Based on recent studies, the average Canadian feels they need around $1.42 million for a comfortable retirement.<\/p>\n
Several sources state the following key findings:<\/p>\n
A February 2024 BMO survey<\/a> found that Canadians believe they need $1.7 million for retirement.<\/p>\n<\/li>\n The Fidelity Canada 2025 Retirement Report<\/a> indicates that people over age 45 feel they\u2019ll need $1.02 million. This is a significant increase from the CA$447,000 cited in the same report from 2005.<\/p>\n<\/li>\n A more recent 2025 BMO Retirement Survey<\/a> revealed an updated figure of $1.54 million \u2014 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.<\/p>\n<\/li>\n<\/ul>\n Note, these figures represent what Canadians perceive they\u2019ll 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.<\/p>\n 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\u2019s why, and what you can do to help yourself reach that figure.<\/p>\n 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.<\/p>\n 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\u2019s population, according to the 2025 UBS Global Wealth Report<\/a>. And while this number is projected to grow by 63% to more than 3.3 million by 2027<\/a>, keep in mind that figure includes people of all ages and wealth levels, not only those nearing retirement.<\/p>\n 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<\/a>, student loan debt<\/a>, 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.<\/p>\n Story Continues <\/p>\n Read more: Here\u2019s how to retire in 10 short years<\/a> no matter where you live in Canada \u2014 even if you\u2019re starting with $0 savings<\/strong><\/p>\n Although 95% of Canadians aren\u2019t millionaires, many could meet that target eventually if they start investing at a young age<\/a>.<\/p>\n 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.<\/p>\n It\u2019s never too late to start saving \u2014 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.<\/p>\n Saving $1.26 million doesn\u2019t 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.<\/p>\n In fact, two thirds of millionaires don\u2019t consider themselves \u201cwealthy\u201d and half of them say their financial planning needs improvement, according to another study by Northwestern Mutual<\/a>. In short, being a millionaire doesn\u2019t mean you\u2019re ready for retirement.<\/p>\n 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<\/a> might be ideal for retirees looking to minimize their expenses.<\/p>\n 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.<\/p>\n 1. BMO: <\/a>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)<\/p>\n 2. Fidelity: <\/a>Fidelity Canada Retirement Report (Jun 10, 2025)<\/p>\n 3. BMO: <\/a>BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)<\/p>\n 4. UBS: <\/a>Global Wealth Report 2025 (Jun 18, 2025)<\/p>\n