Jun 13, 2026
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Many Canadians dream about retiring with $1 million in the bank. In 2026, the average Canadian believes they need $1.7 million to retire comfortably — up from $1.54 million the year before — according to BMO’s Annual Retirement Survey. Yet more than one in three (36%) say they’re unlikely to ever reach that target. In fact, almost no one makes it to $1 million.
Three-quarters of Canadians aged 55 to 64 (75%) have $100,000 or less saved for retirement, according to Benefits Canada data. Put another way, nearly nine out of 10 people approaching retirement age aren’t in the seven-figure club.
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Despite all the retirement success stories on social media, $1 million in savings remains a rare and exclusive milestone.
If you’re falling short of this target — but are still determined to get there — here are three steps you can take to improve your odds.
Step 1: Measure your progress
You can’t reach a destination if you don’t know where your starting point is. The first step toward a million-dollar retirement is benchmarking your savings against what other Canadians your age actually have.
The average Canadian has around $272,000 saved by the time they retire — and that’s not including assets or government pensions. But averages can be misleading. A better benchmark is the median — the middle point in the data that separates one half of savers from the other. Unlike the average, the median is less skewed by a small number of high-balance accounts, allowing for a clearer picture of what a typical Canadian has set aside.
Looking at Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) and Locked-In Retirement Account (LIRA) balances, here’s how Canadians stack up by age, according to Statistics Canada’s Survey of Financial Security:
- Under 35: average $41,000 / median $12,500
- 35 to 44: average $82,100 / median $30,000
- 45 to 54: average $150,300 / median $70,000
- 55 to 64: average $216,900 / median $100,000
- 65 and over: average $224,000 / median $100,000
In other words, the typical Canadian in their late 50s or early 60s has around $100,000 saved in registered accounts — a fraction of what a million-dollar retirement requires. Keep in mind that government benefits like the Canada Pension Plan (CPP) and Old Age Security (OAS) will supplement your retirement savings, but these amounts are modest: the average new CPP recipient in May 2026 was receiving $925.35 a month.
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With this data, you can benchmark your savings, identify the gap and start creating a plan to close it.
To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.
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Step 2: Boost your savings rate
If your retirement target is well above the national or median average, your savings rate probably needs to be significantly higher as well.
The bar for “above average” in Canada isn’t unattainable. Canada’s household savings rate fell to 4.4% in the fourth quarter of 2025, according to Statistics Canada. That means for every $20 in disposable income, most Canadians are saving less than $1. Saving just 6% of your income could put you ahead. Hit 10% or more and you’re in a select group of super-savers.
But saving more requires a shift in spending habits — which is easier said than done. You can start small: automating contributions to your Tax-Free Savings Account (TFSA) or RRSP with every paycheque takes the decision out of the equation. Even modest, consistent contributions can significantly add up over time. For example, investing $500 a month at an average annual return of 6% could grow to approximately $106,000 over 10 years. Add employer matching if it’s available to you, which is essentially free money you can’t afford to leave behind.
The 2026 RRSP contribution limit is $33,810 or 18% of your prior year’s earned income, whichever is lower. The TFSA contribution limit remains $7,000 for 2026, with cumulative room now at $109,000 for those who have been eligible since 2009.
Step 3: Invest for growth
Savings are the foundation. But to turn a solid nest egg into a million-dollar one, your money also needs to work hard. The power of compound growth is real — but only if you have the time and the right investments to let it run.
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Unfortunately, not all Canadians approaching retirement are in a position to wait. Many are behind. The average Canadian retires with roughly $272,000 in savings — that’s less than a third of the $1 million goal.
For those in their 50s and 60s, there are still options. Two in particular are worth considering:
Delay retirement — and your CPP benefits
Staying in the workforce longer gives you more time to earn income, make contributions and let your investments grow. It can also significantly boost your government retirement benefits. Delaying CPP past age 65 increases your monthly benefit by 0.7% for every month you wait — or 8.4% annually. If you delay until age 70, your monthly CPP benefit will be 42% higher than it would be at 65. OAS can also be deferred past 65, growing by 0.6% per month, up to a 36% boost at age 70. For those who can afford to wait, this strategy provides a powerful, inflation-indexed income stream for life.
Invest in low-cost index funds
Passive investing through low-cost index funds has become one of the most popular and accessible strategies for Canadians. Exchange-traded funds (ETFs) now make up nearly a quarter of Canada’s investment fund market, up from less than 10% a decade ago, according to Morningstar. Canadian equity ETFs tracking major indices have produced strong historical annualized returns. A conservative assumption of 10% average annual returns — based on historical equity market performance — means a Canadian saving 10% of a $70,000 annual salary could potentially accumulate approximately $1 million within about 29 years.
To be clear, past performance doesn’t guarantee future results, and all investing involves risk. But a diversified, low-cost portfolio — held consistently over time — remains one of the most proven paths to long-term wealth. Speaking with a licensed financial adviser can help you identify the right mix for your risk tolerance, time horizon and goals.
Make your savings work harder. Open a self-directed investing account with CIBC Investor’s Edge — low fees, powerful tools, and control over your future.
What Canadians can do next
Whether retirement is 30 years away or just around the corner, there are concrete steps you can take today:
- Know your number. Use the Government of Canada’s Canadian Retirement Income Calculator to estimate your CPP, OAS and other income. Then set a target savings amount based on your lifestyle goals.
- Automate your savings. Set up automatic contributions to your RRSP and TFSA with every paycheque so you save before you can spend.
- Maximize tax-advantaged accounts. Contribute to your RRSP first if you’re in a high tax bracket — the deduction lowers your taxable income now. Use your TFSA for flexible, tax-free growth.
- Invest in low-cost index ETFs. Avoid high-fee mutual funds. A diversified ETF portfolio can deliver solid long-term returns without eating into your savings.
- Consider delaying CPP. If you can afford to wait past 65, every year you defer CPP amounts to an 8.4% permanent increase in your monthly benefit. Delaying to age 70 results in a 42% boost.
- Check for employer matching. If your employer offers a pension or RRSP matching program, maximize it. It’s the closest thing to free retirement savings you’ll find.
- Work with a licensed financial adviser. A Certified Financial Planner (CFP) can help you build a personalized retirement strategy that accounts for your income, debt, goals and timeline.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He is the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms His work has appeared in Money.ca, Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine, National Post, Financial Post and Piggybank. He frequently covers subjects ranging from retirement planning and stock market strategy to private credit and real estate, blending data-driven insights with practical advice for individuals and families.
