How much do you need to retire in Canada?

Updated October 17, 2026 · Figures for October–December 2026 unless stated

There is no single number. What you need depends on what you plan to spend each month, when you retire, and how much CPP, OAS and GIS you receive. Government benefits cover part of most retirements, so savings only need to fill the gap.

Start with spending, not savings

A savings target only makes sense once you know the monthly income you want. Think in after-tax dollars and today's prices. If your home will be paid off, remember that property tax, insurance, maintenance and utilities continue.

For context, Statistics Canada reports a 2024 median after-tax income of about $83,200 a year (about $6,930 a month) for senior families, and $38,600 a year for seniors living alone. These are incomes, not spending targets.

What government benefits cover

As an example, a single person aged 65 with the average new CPP pension ($858.34 a month) and a full OAS pension ($762.50) would receive about $1,621 a month before tax, or $19,450 a year. With no other income, they could also qualify for about $538 a month of GIS at the October–December 2026 rates. A couple can receive two of each.

Your own amounts depend on your work history and years in Canada. Check CPP and OAS estimates in your My Service Canada Account.

Then fill the gap with savings

Savings in an RRSP, TFSA or non-registered account cover the difference between your spending and your benefits. How long they last depends on the return you assume, inflation, tax, and the order you draw from each account, because RRSP withdrawals are taxed and reduce GIS while TFSA withdrawals are not.

Rules of thumb like the 4% rule ignore Canadian benefits and tax. A year-by-year projection with your own numbers gives a clearer picture.

Work out your own number. RetirePay Canada combines CPP, OAS, GIS, RRSP, TFSA and other savings to estimate the monthly income your plan could support, after tax and in today's dollars.

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Sources

General information, not financial, tax or legal advice. Amounts are rounded estimates; Service Canada and the Canada Revenue Agency determine actual payments. RetirePay Canada is independent and not affiliated with the Government of Canada.