Canadians believe they need $1.7 million to retire, up from $1.54 million last year: BMO survey

Canadians are raising their retirement goals, but fewer believe they will actually reach them.

According to BMO’s annual retirement survey, Canadians now believe they need an average of $1.7 million to retire comfortably. That’s up from $1.54 million last year, marking a $160,000 year-over-year increase.

“The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals,” BMO said in a release accompanying the results.

The survey, conduced online by Pollara Strategic Insights among 1,500 people between Nov. 4 and Nov. 10, 2025, also found that confidence in reaching those targets is slipping. Thirty-six per cent of respondents say they do not expect to reach their retirement goal, up from 29 per cent last year.

While the national average sits at $1.7 million, expectations vary across the country. Respondents in British Columbia reported the highest estimated retirement target at $2.2 million. In Ontario, the average was $1.92 million, while in Alberta it was $1.66 million. Estimates were lower in Saskatchewan and Manitoba at $1.28 million, with Quebec falling to $1.24 million. Atlantic Canada reported the lowest estimated target at $928,000.

Even as targets climb, many Canadians are not meeting the retirement savings benchmark. Setting aside 10 per cent of income is often used as a guideline in long-term planning. According to the survey, 28 per cent of Canadians save less than five per cent of their income, while 38 per cent save between five and 10 per cent. Only 21 per cent report saving more than 10 per cent.

The survey also found that retirement itself is not a universal goal. Fourteen per cent of respondents say they do not plan to stop working. The figure rises to 27 per cent among Boomers who have not yet retired, compared with 20 per cent of Gen X, 18 per cent of millennials and 15 per cent of Gen Z.

“An increasing number of people say they never plan to retire, which often means they don’t want to stop working entirely,” said Catherine Laurin, senior portfolio manager at BMO Nesbitt Burns.

For many, this could mean retirement will include part-time work, freelancing, or passion projects, rather than a complete exit from the workforce.

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