How Much Do I Need to Retire in Canada? A Clear Way to Find Your Number
Tyler Hoffman ยท 14 November 2026
It's the question almost everyone asks before retiring: how much do I actually need?
Online articles often throw out one big number. But the right amount depends on the life you want, when you want to stop working, and where your income will come from. Here is a simpler way to find your own number.
Step 1: Start With the Lifestyle, Not the Number
Your retirement number comes from your spending. Work out what you expect to spend each year on the basics, such as housing, food, transport and insurance, then add the things that make retirement worth it: travel, hobbies, helping family.
A clear yearly spending figure is the foundation of every reliable retirement plan.
Step 2: Subtract Your Guaranteed Income
Next, take away the income you can count on:
- Canada Pension Plan (CPP), which can start between 60 and 70
- Old Age Security (OAS), which normally starts at 65 and can be delayed to 70
- Any workplace defined benefit pension
- Other steady income, such as rental income
What's left is the gap your savings need to fill each year.
Step 3: Turn the Gap Into a Savings Target
A common rule of thumb is that a well-invested portfolio can support withdrawals of around 4% a year. That means multiplying your yearly gap by about 25.
| Yearly gap from savings | Rough savings target (x 25) |
|---|---|
| $20,000 | $500,000 |
| $40,000 | $1,000,000 |
| $60,000 | $1,500,000 |
These are illustrations only. Your real number depends on taxes, investment returns, inflation and how long your retirement lasts.
Retiring Early Changes the Maths
If you want to retire before 65, your savings need to cover the years before CPP and OAS start. Taking CPP early reduces it permanently, by 0.6% for each month before 65. Delaying it increases it by 0.7% for each month after 65.
The timing of these choices can make a big difference to how much you need to save. Try different start ages with our CPP calculator.
For the savings-funded part of your retirement, use our RRIF calculator to explore withdrawals and how long your balance could last.
Why Independent Advice Helps
A fee-only or advice-only planner is paid for the advice itself, not for selling investments. That means the focus stays on your plan: when you can retire, how much income you'll have, and whether your money will last.
"The goal isn't the biggest possible number. It's knowing you have enough for the life you want."
Next Steps
If you're in British Columbia and want a clear answer for your situation, book a free conversation with Tyler.
