Is $1,000,000 enough to retire in Canada?

For many people, yes, especially with a paid-off home and government benefits on top. For others it's more than they need. The answer comes from your spending, not from the number.

A planning guideline suggesting that withdrawing about 4% of your savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years. It's a starting point, not a plan.

How much money do I need to retire in Canada?

By Reynolds Edokpayi, Zenith Advisory Inc., Saskatoon · Updated October 2026 · 5 min read

Short answer: It depends on what you'll spend, not on a universal figure. Estimate your yearly retirement spending (many people land at 60 to 70% of pre-retirement income), subtract what CPP and OAS will cover, and the gap is what your savings need to produce each year. A common rule of thumb is that savings of about 25 times that yearly gap will last a 30-year retirement.

Step 1: what will you spend?

Take today's spending. Remove what disappears in retirement: the mortgage if it's paid, retirement contributions, work costs, children's expenses. Add what appears: travel, health costs, helping family. Most people land at 60 to 70% of their pre-retirement income, but someone with a paid-off house and simple tastes can be well under that.

Step 2: what will the government pay?

CPP: depends on how much and how long you contributed. Someone with a full contributory career in Canada can receive a meaningful monthly amount; someone who arrived mid-career receives less. Your estimate is in your My Service Canada account.
OAS: based on years of residency in Canada after age 18 (40 years for the full amount, 10 for a partial one), and reduced for high retirement incomes.

Step 3: the gap

Yearly spending minus CPP and OAS equals what your savings must produce. If you need $60,000 and government benefits cover $22,000, your savings must produce $38,000 a year.

Step 4: how much savings produces that?

A common planning rule is 25 times the yearly gap: $38,000 × 25 = $950,000. That assumes a sustainable withdrawal of roughly 4% a year over a 30-year retirement, with the money still invested. It's a planning estimate, not a guarantee, and it changes with your age, health, and whether you want to leave an estate.

Why newcomers should run this calculation early

A later arrival means less CPP and possibly partial OAS, so the gap your own savings must fill is larger than for someone who spent a whole career here. Knowing that at 40 is far better than discovering it at 60.

What we do with this

We run your real numbers, show the gap, and build the saving plan to close it, choosing the accounts (RRSP, TFSA, corporation, pension plan) that get you there with the least tax. Illustrations above are for general information only.

Want this worked out for your numbers? We'll map where you are, show the gap in dollars, and pick the accounts that save you the most tax.

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