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These days, most people are under the impression that the only way they can afford to retire is doing so as a millionaire. More specifically, many Canadians believe retiring comfortably requires seven figures. According to a 2025 BMO survey, the average Canadian says they’ll need about $1.54 million to retire (1).
However, very few Canadians reach that level of retirement savings. A Statistics Canada Survey of Financial Security found that Canadian families’ average net worth in 2023 was $519,700 (2). Yet the same survey showed that the net worth among adults aged 55 to 64 who own their home and have an employer-sponsored pension was about $1.4 million. This number includes all assets, not just retirement accounts.
This means that the majority of Canadians nearing retirement have far less set aside in liquid retirement savings.
Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement.
However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work. Here are the top three big money moves you can make to secure your spot.
1. Supercharge your savings
As of the second quarter of 2025, the average household saving rate for Canadians was only 5.0%, according to Statistics Canada (3). In other words, for every $20 in disposable income, most people were saving less than $1.
If possible, save more than this to gain some momentum — aim for a monthly savings rate of at least 10% to boost your odds of reaching a million-dollar retirement nest egg.
To get a leg up, maximize your contributions to accounts such as your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP). For example, if you invested $500 into a combination of your TFSA and RRSP accounts at an average annual rate of 6%, you could potentially see earnings of approximately $106,000 after 10 years.
With CIBC Investor’s Edge, you can open both a TFSA and an RRSP, which let you take advantage of tax savings so your investments compound more quickly over time.
Investor’s Edge offers low commissions on trades and no or minimal account maintenance fees. You’ll pay no account fees for RRSPs with a balance of $25,000 or more, and TFSAs with $10,000 or more. For non-registered accounts, maintenance fees are waived when your balance exceeds $10,000.
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2. Focus on a tried-and-tested investment strategy and stick with it
Passive investing in low-cost index funds has been an increasingly popular, relatively easy and lucrative tactic for Canadian investors in recent years. For example, Vanguard FTSE Canada Index ETF (VCE.TO) has delivered an annualized return of 17.56% over the past three years (4). In fact, ETFs make up nearly a quarter of the fund market as of March 2025, compared with less than 10% just 10 years ago, according to Morningstar (5).
While past performance indicators don’t guarantee future returns, using standard compound interest principles and assuming a more conservative annual return of 10%, a Canadian saving 10% of a $70,000 salary annually could culminate in approximately $1 million in 29 years.
Even if you’re 40 years old, putting this plan into action today could get you into the seven-figure club by the time you retire. And if you can start earlier, earn more than $70,000 or save more of your monthly paycheque, you could get there even faster.
3. Eliminate debt
While a simple savings and investing plan could get you into the million-dollar retirement club, it won’t guarantee peace of mind unless you can also reduce your debt burden.
Unfortunately, approximately 45% of Canadian credit card holders have carried a balance for at least two consecutive months since 2016, according to the Bank Of Canada (6). Also, about 17% of Canadians have incurred some form of medical debt despite universal healthcare coverage, with dental work as the leading cause, making it increasingly difficult to achieve a debt-free retirement (7).
But if you combine your savings and investment plan with a robust debt management plan, you could be one of the lucky few who get to fully enjoy their golden years with a cushy financial buttress.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
BMO (1); Statistics Canada (2, 3);Vanguard (4);Morningstar (5);Bank of Canada (6); Compare the Market (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.