A good monthly retirement income in Canada typically ranges from $2,900 to $5,400+ per person, heavily dependent on location, housing costs, and lifestyle. While many seniors live on less, a comfortable retirement generally requires 60-70% of pre-retirement income. For a couple, a comfortable average often falls around $5,800–$6,100+ per month.
The main government source is the Canada Pension Plan (CPP), which pays out based on your lifetime contributions. * For 2024, the maximum benefit for someone retiring at age 65 is $1,364.60 per month, although the average payout is actually much lower, at $831.92 per month.
According to a 2025 BMO survey, the average Canadian says they'll need about $1.54 million to retire (1).
Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement. However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work.
In late 2024, for example, during a parliamentary squabble over increasing Old Age Security (OAS) benefits for those aged 65 to 75, it was revealed that the median net worth of Canadians over 65 had risen to almost $550,000.
Based on this rule, if you had $750,000 put away for your retirement, you could take out 30,000 a year and live off that for 25 years. This would be the retirement income of the upper-middle class, which used to make around $100,000 per year when they were working.
In order to be considered wealthy in Canada, you should have a net worth of at least $1 million. That being said, a lot of Canadians who are considered wealthy live a relatively normal life. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three.
By retirement, the average Canadian has saved about $272,000 in cash, according to Stats Canada. Savings jumped during COVID, but mostly among richer Canadians. People with higher incomes made up about 40% of this increase because they didn't face as many job losses.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
The top ten financial mistakes most people make after retirement are:
74% of Canadians with RRSPs have $100,000 or more in retirement savings. Less than half of Canadians with a high-interest savings account have surpassed $100,000 in savings.
Most people retire with significantly less than the $1 million+ many think they need, with median savings for those nearing retirement (ages 65-74) around $200,000, while averages are higher due to large balances held by a few, meaning many individuals fall short, with some studies showing 25% of non-retirees having zero savings.
While the average income for the top 1% of earners is $500,000 annually, the threshold income is much lower at $315,911 annually. Those who are considered to be part of the top 1% are also considered to be upper class. There are quite a few career paths in Canada that can lead you to make an income of those in the 1%.
9 Signs of Wealth to Look Out For
A good net worth by age varies, but common benchmarks suggest aiming for 1x your salary by 30, 3x by 40, 6x by 50, and 8-10x by retirement, while median figures show a steady climb from around $39k (under 35) to over $360k (55-64), with averages being much higher due to wealth concentration at the top. These are guidelines, as personal factors like location, career, and debt significantly impact your financial picture.
Defining the Classes
Lower middle class (25th to 50th percentile): $29,300 to $209,000 net worth. Upper middle class (50th to 75th percentile): $209,000 to $714,000 net worth. Upper class (75th to 90th percentile): $714,000 to $2.1 million net worth. Wealthy (90th percentile and above): Over $2.1 million net worth.
If the TLDR chart is true, then the only about 7-8% of the Canadian population has 500K or more.
It's important to understand the options available to help protect the assets you've spent a lifetime accumulating.
Yes, you can live off the interest/returns from $500,000, but it depends heavily on your lifestyle and expenses, with the common 4% rule suggesting about $20,000 annually, which may require a frugal lifestyle, relocation, or significant Social Security income to supplement. With smart investing (e.g., balanced stock/bond mix) and minimal spending, it's feasible for many, but living in a high-cost area or with high expenses would make it difficult.