Stick to the Facts
Add Nbsla.ca as a Preferred Source on Google to see more of our stories in your search results.
For many Canadians, retirement planning starts with a shocking figure. A recent survey by Bank of Montreal found that people believe they need around $1.7 million to retire comfortably—up significantly from the previous year.
It’s no surprise that more than a third of respondents see this goal as nearly impossible. Big lump-sum numbers can feel overwhelming and often discourage people from even starting their retirement planning journey.
Breaking Down the Numbers Into Real Life
Financial planner Tara Downs Rocchetti offers a more practical way to look at retirement savings.
Instead of focusing on a massive total, she suggests translating that number into annual income. For example, if someone retires and lives until 95, that $1.7 million roughly equates to about $56,600 per year.
Seen this way, retirement planning becomes less about chasing an intimidating number and more about understanding how much income you will actually need each year.
CPP and OAS Payments Set for April 28, 2026 With New Benefit Increases
Start With Guaranteed Income Sources
A smarter approach is to begin with what you already have. Programs like the Canada Pension Plan provide a base level of monthly income.
By checking your estimated CPP benefits through your government account, you can get a clearer picture of how much income is already covered. From there, your savings only need to fill the gap between that amount and your desired lifestyle.
Your Lifestyle Will Define Your Target
There is no one-size-fits-all retirement number. Your needs depend on personal factors such as:
- Whether you own your home or still pay rent
- Family responsibilities
- Where you plan to live
- Your expected lifestyle in retirement
Location alone can dramatically change your target. People in British Columbia and Ontario often expect to need far more than those living in Atlantic Canada due to higher living costs.
The Real Challenge Is Consistent Saving
While the headline numbers grab attention, the real issue for most people is not calculating retirement needs—it’s actually saving money consistently.
Higher incomes don’t always solve the problem. Many people fall into “lifestyle creep,” where increased earnings lead to higher spending and debt instead of more savings.
In such cases, paying down high-interest debt may need to come before aggressive retirement investing.
The Emotional Side of Money Matters
Retirement planning is not just about math. It also involves difficult conversations about spending habits, priorities, and long-term goals.
Large figures like $1.7 million can trigger anxiety, making people feel like they are already behind. That’s why financial experts often shift the focus away from total savings and toward manageable monthly contributions.
Focus on What You Can Control Today
Instead of fixating on a distant target, a more effective strategy is simple: determine how much you can realistically save each month and stick to it.
Over time, consistent contributions, combined with investment growth and government benefits, can build a solid retirement foundation.
The key takeaway is that retirement isn’t defined by a single number. It’s shaped by your habits, your lifestyle choices, and the steps you take today to prepare for the future.