Survey reveals that Canadians now estimate they need about $1.7 million to retire, with some doubting they will reach it
Canadians say they need more than ever to retire – and a growing share doubts they will get there.
According to BMO's Annual Retirement Survey, Canadians now estimate they need about $1.7m to retire, up from $1.54m last year, yet 36 percent say they are unlikely to hit that number, up from 29 percent a year earlier.
The results point to higher retirement targets colliding with weaker confidence as rising costs and economic conditions test long-term plans.
Terri Szego, senior portfolio manager and senior wealth advisor at BMO Nesbitt Burns, said setting savings goals is important, but “turning those goals into reality is where the real work begins.”
She said her team helps clients “refine their objectives and build clear, actionable plans,” using tools to show what it takes to reach long-term goals and breaking “big numbers” into smaller steps.
The survey shows how retirement targets have shifted in recent years.
After sitting at $1.349m in 2019, Canadians’ perceived retirement need moved to $1.437m in 2020, $1.638m in 2021, $1.743m in 2022, $1.671m in 2023, $1.541m in 2024, and $1.706m in 2025. The latest figure represents a $160,000 year-over-year increase.
Regional figures underline how uneven those expectations are.
Respondents in BC report the highest target at $2.201m, followed by Ontario at $1.923m and Alberta at $1.658m. Saskatchewan and Manitoba sit at $1.278m, Quebec at $1.237m, and the Atlantic provinces at $928,000.
The survey also drills into how Canadians save rather than what they think they need.
Using 10 percent of income as a common benchmark for retirement saving, 28 percent say they save less than 5 percent of income, 38 percent set aside 5 percent–10 percent, and 21 percent save more than 10 percent.
In monthly dollar terms, 10 percent save less than $100, 23 percent save $100–$499, 10 percent save $500–$999, and 12 percent save over $1,000.
Margaret Leong, senior investment counsellor and portfolio manager at BMO Private Wealth, said deciding how much to save for retirement is personal, but “thinking in percentage terms can help with long term planning,” and that for someone in their 20s, “contributing 10 per cent a month to an RRSP can be a great start.”
She added that as earnings rise in a person’s prime working years, their savings should also rise to benefit from compound growth, and that “every extra dollar saved” brings people closer to their retirement goals.
Retirement itself also appears to be changing shape.
Among Canadians who are not retired, 14 percent say they do not plan to stop working. That view is more common among Boomers who have not yet retired, 27 percent of whom say they do not plan to stop working.
The survey reports similar responses across younger cohorts: 20 percent of Gen X, 18 percent of Millennials and 15 percent of Gen Z say they do not plan to retire.
Catherine Laurin, senior portfolio manager at BMO Nesbitt Burns, said an “increasing number of people say they plan to never retire,” which often means they do not plan to stop working entirely.
She said many expect retirement to include “part-time work, freelancing, or passion projects,” and that she works with clients to ensure their plans reflect how part-time income may affect taxes and government benefits.
Advisors’ roles remain central in this environment.
Nearly nine in ten (89 percent) investors in the survey say their advisor helps them meet their financial goals, with 44 percent strongly agreeing.
Respondents most often cite three reasons for valuing their advisor: providing sound strategies and advice, offering customized plans, and building strong personal relationships.
