BMO Survey Reveals Canadians' Retirement Savings Target Climbs to $1.7 Million
A comprehensive survey conducted by the Bank of Montreal has uncovered a stark reality for Canadians planning their golden years. According to the findings, the average Canadian now believes they need a staggering $1.7 million in savings to retire comfortably. This figure represents a significant increase from the $1.54 million target reported just two years ago in 2024.
Growing Financial Uncertainty and Regional Disparities
The survey, which polled 1,500 adults in late 2025, highlights a climate of growing financial anxiety. "The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals," BMO stated in its report released this week. This latest retirement savings goal is 26 percent higher than the $1.35 million Canadians estimated they needed back in 2019, when BMO first began tracking this metric.
However, the financial mountain to climb is not uniform across the country. The survey revealed substantial provincial variations in retirement savings targets:
- British Columbia: Residents estimate needing $2.2 million, the highest in Canada.
- Ontario: Close behind with a target of approximately $1.9 million.
- Alberta: Aiming for nearly $1.7 million.
- Saskatchewan and Manitoba: Targeting $1.28 million.
- Quebec: Estimating $1.24 million.
- Atlantic Provinces: The lowest target at $928,000.
Declining Confidence in Achieving Retirement Goals
Perhaps more concerning than the rising target is the declining confidence among Canadians in their ability to reach it. The survey found that 36 percent of respondents now admit they do not expect to attain their retirement savings goal, a notable increase from 29 percent in 2024.
This pessimism is reflected in actual savings behavior. BMO reported that many Canadians are failing to meet the commonly recommended benchmark of saving 10 percent of their income for retirement. The breakdown reveals:
- Nearly 30 percent save less than 5 percent of their income.
- Almost 40 percent save between 5 and 10 percent.
- Only 21 percent manage to set aside more than 10 percent.
The Trend Toward Working Longer
Faced with these financial challenges, a significant portion of Canadians are reconsidering traditional retirement altogether. Fourteen percent of survey respondents indicated they plan to keep working rather than retire. This intention varies across generations:
- 27 percent of Baby Boomers (not yet retired) plan to stay in the workforce.
- 20 percent of Generation X share this intention.
- 18 percent of Millennials expect to keep working.
- 15 percent of Generation Z anticipate continuing employment.
Corroborating Evidence from International Study
Another recent study by global asset manager T. Rowe Price Group Inc. echoes BMO's findings about Canadian retirement skepticism. Their survey of over 7,000 people across five countries (including Canada, the U.S., U.K., Japan, and Australia) found that while nearly half of Canadians are contributing as much as they can afford to workplace pension plans, only 41 percent believe they will end up with enough to retire comfortably.
The T. Rowe survey also noted similar patterns regarding extended work lives. Thirty percent of Canadians aged 50 and older expect to continue working at least part-time, compared to 18 percent of those aged 35-49 and 12 percent of those aged 18-34. The firm emphasized that this trend isn't necessarily negative, as some choose to work for non-financial reasons such as maintaining a sense of purpose and social engagement.
Together, these surveys paint a picture of a nation grappling with the financial realities of retirement in an era of economic uncertainty and rising costs, forcing many to recalibrate their expectations and plans for their later years.
