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How much money do I need to retire in Canada?

Krystian UrbanskiBy Krystian Urbanski, CIM, CIWM, FCSI, PFP · Chief Retirement Strategist, RetirementIQ
Updated · 3 min read
The short answer

Canadians told BMO in 2026 that they think they need $1.7 million, but there is no universal number. Start with what you will spend, subtract guaranteed income such as CPP, OAS and pensions, and the gap is what your savings must cover each year. For many couples with CPP and OAS, that is much less than $1.7 million.

$1.7MWhat Canadians think they need (BMO 2026)
~$38,900Average CPP + full OAS for a couple, per year
SpendingThe starting point
Gap × yearsWhat savings must cover

Why one number does not fit everyone

In BMO’s 2026 survey, Canadians said they would need $1.7 million to retire comfortably, up from $1.54 million the year before. But a teacher with a defined benefit pension and a business owner with no pension need very different amounts. The question is not “how much is enough?” but “enough for what?”

A four-step estimate

  1. Estimate your spending in retirement: essentials (housing, food, insurance, transport) and lifestyle (travel, gifts, hobbies). The Budget Planner helps.
  2. Add up guaranteed income: CPP, OAS and any workplace pension. In 2026, a couple who each receive the average new CPP and full OAS collects about $38,900 a year.
  3. Find the gap that your savings must fill each year, before tax.
  4. Size the savings. A sustainable withdrawal is often in the range of 4% to 5% of savings a year at the start of retirement, depending on your age, investments and flexibility.

What changes the answer

  • Retiring earlier, which means more years to fund and fewer years of savings.
  • Your home: whether it is paid off, and whether you might downsize.
  • Taxes, health care and long-term care costs later in life.
  • Whether you want to leave an inheritance.
An example

A couple both 65 plan to spend $90,000 a year before tax. Their CPP and OAS add up to about $39,000, leaving a $51,000 gap. At a 4% withdrawal rate that suggests about $1.28 million in savings; at 5%, about $1.02 million. If one of them has a $25,000 workplace pension, the gap falls to $26,000 and the savings needed to around $520,000 to $650,000.

What to do next

  1. Complete the Budget Planner to estimate your spending.
  2. Get your CPP estimates and check your OAS eligibility.
  3. Take the Retirement IQ Scorecard to see where your plan has gaps.
  4. Stress-test the plan for inflation, a market drop and a long life.

Free tools that help

Retirement Budget PlannerSee whether your income covers your spending.Retirement IQ Scorecard30 questions, six areas, one score.CPP and OAS CalculatorCompare every start age, with break-even ages.

Related questions

Is $1 million enough to retire in Canada?

For many couples, yes, when combined with CPP and OAS, especially with a paid-off home. For a single person retiring early with high spending and no pension, it may not be. It depends on your spending and guaranteed income.

What is the 4% rule?

A guideline that withdrawing about 4% of your savings in the first year, then adjusting for inflation, has historically lasted about 30 years. It is a starting point, not a guarantee, and Canadian taxes, fees and RRIF minimums all affect it.

Should I count my house in my retirement savings?

Only if you plan to sell or downsize. A home you will live in provides shelter, not income, though it can be a backstop for long-term care later.

Ask Krystian

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