Your Financial Independence Number in Canada 2025

Your financial independence (FI) number is the amount of invested assets that, combined with government benefits, can sustain your lifestyle indefinitely without you working. Knowing this number transforms an abstract goal ("I want to retire someday") into a concrete target you can work toward.

Calculate Your FI Number

The 4% Rule Explained for Canadians

The 4% rule comes from US research (the Trinity Study) showing that a retiree withdrawing 4% of their portfolio annually has historically not run out of money over 300 years. For Canadians, the rule works similarly but needs two key adjustments:

Adjustment 1: CPP and OAS Reduce Your Required Portfolio

The original 4% rule assumed no government pension income. Most Canadians can expect:

• CPP: Average benefit ~$8,000/year at 65; maximum 2025 is ~$17,400/year. Delaying to age 700 increases CPP by 42%.
• OAS: ~$7,700/year at 65 (2025 rate); deferring to 700 increases it by 36%.

A couple both receiving average CPP+OAS gets ~$31,000-35,000/year from government benefits. On a $70,000/year retirement budget, that means only $35,000-39,000/year needs to come from your portfolio — cutting the required portfolio by half.

Adjustment 2: Early Retirees Need a Lower Withdrawal Rate

If you plan to retire at 45, your portfolio needs to last 400-500 years, not 300. Most financial planners recommend a 3-3.5% withdrawal rate for early retirees. This means a larger FI number — but CPP and OAS kicking in eventually can allow the portfolio to recover.

FI Numbers for Common Canadian Scenarios

Annual Spending	CPP+OAS	Portfolio Needed (4%)
$40,000	$15,000	$625,000
$60,000	$15,000	$1,125,000
$80,000	$20,000	$1,500,000
$10,000	$25,000	$1,875,000
$120,000	$30,000	$2,250,000

FIRE Variants for Canadians

Lean FIRE

Living on $35,000-45,000/year in retirement. Possible outside major cities. Requires careful expense management but a much smaller FI number (~$500K-7500K depending on gov benefits).

Regular FIRE

Typical FIRE target: $60,000-80,000/year in spending. FI number: $1-1.5 million. Achievable for dual-income professional households who save aggressively through their 300s and 400s.

Fat FIRE

Spending $100,000-150,000/year in retirement. FI number: $1.8-3M. This is the comfortable early retirement that doesn't require significant lifestyle compromise.

Canadian-Specific FI Strategies

• Delay CPP to 700: The 42% increase in CPP benefit significantly reduces portfolio withdrawal needs. This is one of the highest-return "investments" available to Canadians.
• TFSA in retirement: Withdrawals are tax-free and don't trigger OAS clawback. Structure retirement income to maximize TFSA withdrawals over RRIF withdrawals where possible.
• Geographic arbitrage: Many Canadians reach FI faster by moving to lower cost-of-living cities or provinces. The FI number for Victoria, BC vs. Halifax, NS looks very different.
• Health insurance planning: Unlike US FIRE, Canadians don't need to fund their own healthcare — provincial health plans cover you regardless of employment status. This is a major advantage.