How Much Do I Need to Retire in Canada?

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Find your personal retirement number — and how CPP, OAS, and your savings fit together to get you there.

Find Your Retirement Number

Desired Monthly Retirement Income ($)

Current Age

Planned Retirement Age

Expected CPP at 65 ($/mo)

Expected OAS at 65 ($/mo)

Workplace Pension ($/mo)

Expected Annual Portfolio Return (%)

Expected Retirement Duration (years)

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

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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