Find your personal retirement number — and how CPP, OAS, and your savings fit together to get you there.
Find Your Retirement Number
You need approximately
in personal savings/investments at retirement
The Canadian Retirement Rule of Thumb
A commonly cited benchmark is the "Rule of 70%" or "70% income replacement" — in retirement, you'll need roughly 70–80% of your pre-retirement income to maintain your lifestyle. This accounts for lower expenses (no mortgage, no work commute, reduced savings contributions), but may underestimate costs if you plan extensive travel or have significant healthcare needs.
How Much Do Canadians Actually Need? (2026 Benchmarks)
Lifestyle
Monthly Budget
Savings Needed at 65*
Basic/modest (small town)
$2,500–$3,200
$150,000–$250,000
Comfortable (mid-size city)
$3,500–$5,000
$300,000–$600,000
Comfortable (Toronto/Vancouver)
$5,000–$7,500
$600,000–$1,000,000
Affluent/active retirement
$7,500–$12,000
$1,000,000–$1,800,000
*After accounting for average CPP (~$870/mo) and full OAS (~$727/mo). Numbers assume 5% portfolio return and 25-year retirement.
The 4% Rule: A classic guideline is to withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation annually. Under this rule, a $1,000,000 portfolio generates $40,000/year ($3,333/month) of sustainable income for 30 years.
What Reduces How Much You Need
Higher CPP: Every extra dollar of CPP reduces how much savings you need. Delaying CPP to 70 can reduce required savings by $100,000–$200,000
Defined benefit pension: Government and union pensions eliminate the savings burden for that portion of income
Paid-off home: No rent or mortgage payment dramatically reduces monthly cash needs
Downsizing home: Selling a larger home and buying smaller can free up $200,000–$500,000 in equity
Part-time work: Even $1,000–$1,500/month from part-time work dramatically reduces portfolio drawdown
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