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How much do you think you’ll need to retire? Based on recent studies, the average Canadian thinks they’ll need about $1.42 million for a comfortable retirement.
Fidelity Canada’s 2025 Retirement Report indicates that people over 45 feel that they’ll need $1.02 million (1). This is a significant increase from the $447,000 cited in the same report from 2005.
However, the 2025 BMO Retirement Survey reveals a higher number — $1.54 million — suggesting that potential retirees are increasingly aware of the rising costs of retirement (2).
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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 retirement targets have 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.
Lack of savings and investments
Although most Canadians agree that they require at least seven figures to retire comfortably, only a 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, representing about 5% of the country’s population, according to the 2025 UBS Global Wealth Report (3). While the number of Canadian millionaires is projected to grow by 63% to more than 3.3 million by 2027, this increase includes people of all ages and wealth levels, not just 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 and employment or pension insecurity.
If you’re not sure where to start, a budgeting app like Monarch Money can help you get a handle on the ins and outs of your financial situation.
Monarch Money puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs for couples, or helping your child get used to big picture financial planning as parents. The app is also well reviewed. Forbes ranked Monarch Money as their best budgeting app for 2025, as did the Wall Street Journal.
And the best part? Monarch Money offers a seven-day free trial so you can find out if it’s right for you. If you like what you see, you can snag 50% off with code WISE50.
But even those saving diligently can find themselves challenged to keep up with the rising cost of a comfortable retirement.
Beating out the rate of inflation with your interest rate could be a good place to start. You can cut down on fees while making your savings work harder by opening a personal account with EQ Bank.
If you set up a monthly recurring deposit of at least $2,000, you can earn up to 3% APY on every dollar you save. That’s roughly six times the average interest rate offered by traditional banks.
You’ll still enjoy the flexibility of a chequing account, with no account fees or minimum balance requirements, free ATM withdrawals across Canada and no foreign exchange fees on international transactions.
EQ Bank also gives you more control over how you manage your money. You can open up to eight separate accounts for different goals — whether that’s spending, saving, emergencies or everything in between — so your finances stay organized.
Read more: Are you drowning in debt? Here are 3 simple strategies to help crush your balance to $0 in no time
Starting early is key to saving for retirement
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, either, but the corresponding 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, or $3,975 a month times 12 months times 15 years. The remaining $549,500 is the result of compound growth of the investment over time at a rate of 7% a year.
But high commissions and exorbitant fees typically charged by traditional brokerages can quietly eat into your returns. Every dollar saved on fees is another dollar that can be set to work for your future.
With that in mind, using a brokerage like CIBC Investor’s Edge can help you save on commissions while staying on top of your self-directed investing goals.
You can trade stocks and ETFs for just $6.95 per trade. Active traders who place more than 150 trades per quarter get an even lower commission of only $4.95 per trade.
Plus, you don’t have to pay any account and maintenance fees when your combined balance across registered and non-registered accounts exceeds $10,000. You’ll also get access to real-time news and stock alerts, helping you stay on top of market shifts and make more informed investing decisions.
If you’re 25 or under, CIBC makes it easier for you to get started. Young investors pay zero commission on stocks and ETFs, with no annual maintenance fees or account minimums to worry about.
The real ‘retire comfortably’ number will be unique to your situation
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 (4). 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 may be ideal for retirees seeking 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 could be on track for almost any type of retirement you desire.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Fidelity: Canada Retirement Report (1); BMO: Retirement Survey (2); UBS: Global Wealth Report 2025 (3); Northwestern Mutual (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.