- 36% of Canadians express concerns they will not reach their retirement savings goals
- British Columbia reported the highest estimated retirement target at $2.2 million; Atlantic Canada is lowest at $928,000
- 14% of Canadians say they plan to never retire
TORONTO, Feb. 24, 2026 /CNW/ - Canadians are setting ambitious retirement goals, but confidence in achieving them is weakening, according to BMO's Annual Retirement Survey. The survey reveals that on average, Canadians now believe they need $1.7 million to retire comfortably – up from $1.54 million last year. At the same time, more than one-third (36%) say they are unlikely to reach that target – an increase from 29% last year. The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals.
"Setting savings goals is essential, but turning those goals into reality is where the real work begins," said Terri Szego, Senior Portfolio Manager and Senior Wealth Advisor, BMO Nesbitt Burns. "We help clients refine their objectives and build clear, actionable plans, using advanced tools to show exactly what it takes to reach their long-term financial goals. Big numbers can feel overwhelming, so we break them down into achievable steps to keep clients confident, motivated, and on track to help them make real financial progress."
Retirement Savings Targets Rise Again in 2025
The amount Canadians believe they need for retirement increased by $160,000 year-over-year to $1.7 million, on average. Targets vary significantly across regions:
Retirement Funds Canadians Believe They Need by Year:
2025 |
$1,706,000 |
2024 |
$1,541,000 |
2023 |
$1,671,000 |
2022 |
$1,743,000 |
2021 |
$1,638,000 |
2020 |
$1,437,000 |
2019 |
$1,349,000 |
Retirement Funds Canadians Believe They Need by Region:
B.C. |
$2,201,000 |
Ontario |
$1,923,000 |
Alberta |
$1,658,000 |
Saskatchewan & Manitoba |
$1,278,000 |
Quebec |
$1,237,000 |
Atlantic Provinces |
$ 928,000 |
How Much Are Canadians Actually Saving for Retirement?
The survey reveals how much Canadians were saving in dollar terms, but also how much they are saving as a percentage of income. Saving 10% of income for retirement is often used as a benchmark and according to the survey results, here is how much Canadians are saving for retirement:
- 28% save less than 5% of income
- 38% save 5%-10%
- 21% save more than 10%
In dollar terms, here is how their monthly retirement savings breaks down:
- 10% save less than $100
- 23% save $100 - $499
- 10% save $500 - $999
- 12% save over $1,000
"Deciding how much to save for retirement is a personal choice and depends on many factors, but thinking in percentage terms can help with long term planning, so someone in their 20s, contributing 10 per cent a month to an RRSP can be a great start," said Margaret Leong, Senior Investment Counsellor and Portfolio Manager, BMO Private Wealth. "As earnings increase throughout an individual's prime working years, so should their savings, creating an opportunity to take advantage of compound growth and build a more secure retirement. Every extra dollar saved brings people closer to the retirement they envision."
Working Through Retirement
Some Canadians say they plan to never retire and while their reasons to remain employed may vary, according to the survey, of those that are not retired, 14% say they do not plan to stop working. While many of the Boomers surveyed indicate they are already retired, of those that have not retired, a full 27% say they do not plan to stop working. The survey also reveals that 20% of Gen X, 18% of Millennials and 15% of Gen Z say that they do not plan to retire.
"An increasing number of people say they plan to never retire, which often means they don't want to stop working entirely," said Catherine Laurin, Senior Portfolio Manager, BMO Nesbitt Burns. "For many, retirement includes part-time work, freelancing, or passion projects. We work with clients to ensure their plans account for these choices, including how part-time income may impact taxes and government benefits."
Personalized Plans, Strong Strategies and Trust Drive Advisor Value
The survey also looks at Canadians working with advisors and their relationships with financial professionals. Nearly nine in ten (89%) investors say their advisor helps them meet their financial goals, with 44% agreeing strongly with the statement. According to the survey, top reasons Canadians value their advisor include providing sound strategies and advice, offering customized plans, and building strong personal relationships.
Helpful Retirement Tips
For Canadians planning for retirement and looking to maximize RRSP savings, BMO offers these tips:
- Start planning early: Define retirement objectives and long-term financial goals to determine the right investment and savings strategies.
- Practice discipline: Manage spending, review budgets, and treat savings as a regular expense.
- Contribute securities to an RRSP: Contributions don't have to be in cash--qualified securities can be transferred "in-kind."
- Seek professional advice: Advisors have the expertise to monitor portfolios and recommend strategies tailored to financial circumstances, risk tolerance, and goals.
For more on RRSP Savings Tips and Strategies, click here.
Disclaimers:
This message is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual's investment objectives, risk tolerance and professional advice should be obtained with respect to any circumstance.
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About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to approximately 13 million clients across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and stronger communities.
SOURCE BMO Financial Group
Media Contact: Aaron Sobeski, Toronto, [email protected], (416) 867-3996
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