Older couple running <\/p>\n
Much of retirement planning is focused on the so-called \u201cmagic number” \u2014 how much you need to have saved in order to live comfortably and confidently without employment income.<\/p>\n
Today, most Canadians believe that magic number is $1.54 million, according to a 2025 Bank of Montreal survey (1).<\/p>\n
But the complexity of your golden years go way beyond a single number. This number tells you nothing about how your personal finances compare to your peers and whether you\u2019re likely to feel comfortable and confident in retirement.<\/p>\n
Even if you don\u2019t have a $1.54-million nest egg, here are seven signs you\u2019re doing better than most retirees and can afford to relax.<\/p>\n
While you can\u2019t anticipate all your monthly expenses, you will need at least enough guaranteed retirement income \u2014 including pensions, personal savings, Old Age Security (OAS) and the Canada Pension Plan (CPP) \u2014 to pay for food, shelter and utilities.<\/p>\n
As of 2023, Statistics Canada found that couples over the age of 65 spend an average of $78,499 per year, which breaks down to about $6,541 per month (2).<\/p>\n
So if your guaranteed retirement income delivers over $6,500 a month at least, you\u2019re outperforming most other retirees.<\/p>\n
Unfortunately, carrying high-interest consumer debt into retirement is becoming more common. According to StatCan, 37% of senior families have consumer debt as of 2016 \u2014 the most recent data on hand (3).<\/p>\n
Managing consumer debt is tough on a limited fixed income. A sudden spike in interest rates could derail your retirement plan.<\/p>\n
Meanwhile, mortgage debt continues to put a strain on the finances of older adults as well. A 2025 survey from Royal LePage found that 29% of people planning to retire in 2025 or 2026 say they will continue to have a mortgage on their primary residence in retirement (4).<\/p>\n
Read more: Here are 5 expenses that Canadians (almost) always overpay for<\/a> \u2014 and very quickly regret. How many are hurting you?<\/strong><\/p>\n Many older Canadians are forced to rely on CPP\/OAS as their sole source of income. Data from 2015 shows that the OAS program reduced the percentage of seniors below Statistics Canada’s Low Income Cut-Off (LICO) to just 4%. Without the program, the rate would have been 23% (5).<\/p>\n Continua a leggere <\/p>\n Equally concerning is the fact that for low income seniors, CPP\/OAS benefits accounted for 67% of their yearly income.<\/p>\n If you have multiple sources of income beyond CPP\/OAS \u2014 such as dividends, income from rental properties or pensions \u2014 you\u2019re in a much better financial position.<\/p>\n As of 2024, 28% of older adults in Canada reported that rising prices were \u201cgreatly affecting their ability to meet day-to-day expenses\u201d (6). However, if your spending is below your income, you\u2019re doing something rare: accumulating capital in retirement.<\/p>\n This excess cash can really bolster your personal finances in your golden years.<\/p>\n If you\u2019re not just saving money in retirement but proactively investing it, you\u2019re benefiting from the market\u2019s growth engine.<\/p>\n As your nest egg continues to expand in your senior years, you\u2019re much less likely than your peers to outlive your savings.<\/p>\n According to a 2025 survey from the Healthcare of Ontario Pension Plan, 49% of Canadians were unable to set aside any money the previous year for retirement (7). If you\u2019ve been actively saving and investing in these accounts, and started at a younger age, you may be doing better than many other Canadians.<\/p>\n Luckily, 71% of Canadians over the age of 65 have an up-to-date will, according to a 2023 survey from Angus Reid. However, that number drops to 37% when all ages are included (8).<\/p>\n So if you have a plan for what happens to your assets and income sources after you\u2019re gone, you\u2019re putting yourself and your loved ones in a better position than most. One crucial thing to do if you\u2019re behind on any of these items is to reach out to a financial advisor to create a retirement plan.<\/p>\n Such a plan can help you systematically pay off debt, lower your spending or boost your income from multiple sources over time.<\/p>\n It\u2019s never too late to start making minor adjustments for a better retirement.<\/p>\n \u2014 with files from Rebecca Holland<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Bank of Montreal (1<\/a>); Statistics Canada (2<\/a>), (3<\/a>), (5<\/a>), (6<\/a>); Royal LePage (4<\/a>); Healthcare of Ontario Pension Plan (7<\/a>); Angus Reid (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. 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