Canadians' Retirement Savings Target Climbs to $1.7 Million Amid Growing Financial Uncertainty
According to the latest annual retirement survey from BMO, Canadians now believe they need an average of $1.7 million to retire comfortably. This represents a significant increase from last year's figure of $1.54 million, marking a substantial $160,000 year-over-year jump in perceived retirement needs.
Growing Pessimism About Reaching Retirement Goals
The survey, conducted online by Pollara Strategic Insights among 1,500 Canadians between November 4 and November 10, 2025, reveals troubling trends in retirement confidence. Thirty-six percent of respondents now say they do not expect to reach their retirement goal, up from just 29 percent last year. This growing pessimism reflects increasing financial pressures across the country.
"The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals," BMO stated in a release accompanying the survey results. The data suggests that despite setting higher targets, many Canadians are becoming less confident about their ability to achieve them.
Significant Regional Disparities in Retirement Expectations
While the national average sits at $1.7 million, retirement expectations vary dramatically across different regions of Canada:
- British Columbia reports the highest estimated retirement target at $2.2 million
- Ontario follows with an average of $1.92 million
- Alberta residents target $1.66 million
- Saskatchewan and Manitoba average $1.28 million
- Quebec falls to $1.24 million
- Atlantic Canada reports the lowest estimated target at $928,000
These regional differences likely reflect varying costs of living, economic conditions, and lifestyle expectations across the country.
Retirement Savings Habits Falling Short of Benchmarks
Even as retirement targets climb, many Canadians are not meeting established savings benchmarks. Financial planners often recommend setting aside 10 percent of income for long-term retirement planning. However, the BMO survey reveals concerning patterns:
- 28 percent of Canadians save less than 5 percent of their income
- 38 percent save between 5 and 10 percent
- Only 21 percent report saving more than 10 percent
This disconnect between retirement goals and current savings habits highlights a significant challenge for many households trying to prepare for their future financial security.
Changing Attitudes Toward Retirement Itself
The survey also uncovered shifting perspectives on retirement as a concept. Fourteen percent of respondents say they do not plan to stop working entirely, with this figure varying significantly across generations:
- 27 percent of Boomers who have not yet retired
- 20 percent of Generation X
- 18 percent of millennials
- 15 percent of Generation Z
"An increasing number of people say they never plan to retire, which often means they don't want to stop working entirely," explained 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."
The BMO survey paints a complex picture of Canadian retirement planning in 2026, with rising targets, declining confidence, and evolving attitudes toward what retirement means in modern society. As economic pressures continue to mount, these trends suggest Canadians may need to reconsider traditional approaches to financial planning for their later years.
