The $1.7 million retirement gap is crushing the Canadian dream and stealing your peace of mind, but you can bridge it by automating your savings now

In other words, Canadians expect they’ll need more for retirement, but they feel less confident getting there.

“Setting savings goals is essential, but turning those goals into reality is where the real work begins,” Terri Szego, senior portfolio manager and senior wealth advisor at BMO Nesbitt Burns, said in a statement quoted in the survey.

Here’s a look at retirement trends across Canada, and what to do if you’re behind.

Retirement targets vary widely across Canada

According to the BMO survey, where Canadians live also appears to shape how much they think they’ll need.

British Columbians reported the highest retirement target at just above $2.2 million, followed by Ontarians at around $1.9 million. In contrast, residents in Atlantic Canada estimated they would need $928,000.

Nationally, retirement expectations have climbed over time. Canadians estimated needing about $1.35 million in 2019. Today’s $1.7 million figure reflects years of rising housing costs, inflation and broader economic uncertainty.

Get things rolling with an RRSP high-interest savings account

If you’re starting to sweat about how you’re going to fund your golden years, you could prepare yourself early by opening a no-fee RRSP high-interest savings account with EQ Bank.

A high-interest RRSP savings account has the benefit of mixing tax-deductible contributions and tax-deferred growth with higher interest rates, allowing your savings to compound and grow faster.

For a limited time, you can also get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Make it interesting with an emergency fund

Once you’ve started your retirement savings, you might also start thinking about what else to do with your money. If that’s the case, you could consider opening an emergency fund.

An emergency fund does just what its name suggests: It stores cash to help you cover unexpected or emergency expenses without having to turn to high-interest debt like credit cards in a pinch.

But you don’t want inflation to take the wind out of your emergency fund. That’s why finding a savings account with a solid interest rate is so important.

Many banks offer you a high promotional rate that expires after a short period, typically after 90 days. Neo Financial takes the opposite approach: they reward you for staying committed to your goals.

With the Neo Savings account, your money works harder as your balance grows.

Unlock a very competitive 3% interest rate once your combined balance hits $20,000. But even before you reach that milestone, you’ll earn a solid 2.25% right out of the gate.

You can even open a joint account to combine balances to earn the higher rate. And for a limited time, you can get up to $650 in cash if you open a Neo Savings account and move ​​at least $1,000 from an external account by March 22, 2026.✢

With no monthly fees to eat into your earnings and with your deposits eligible for CDIC protection, it’s an account designed to help you reach your next financial milestone faster, not just provide a temporary perk.

And even if you’re already retired, an emergency fund could still be a good idea. Rainy days can tarnish your golden years, too.

Are Canadians saving enough?

While retirement targets are rising, savings habits tell a mixed story.

Saving 10% of income is often used as a benchmark in retirement planning. According to the survey:

• 28% save less than 5% of their income
• 38% save between 5% and 10%
• 21% save more than 10%

A majority of Canadians are not meeting the 10% benchmark.

Monthly contributions also vary significantly. About 1 in 10 Canadians save less than $100 per month, while just 12% report setting aside more than $1,000 monthly for retirement.

“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,” Margaret Leong, senior investment counsellor and portfolio manager at BMO Private Wealth, in a statement quoted in the survey.

“As earnings increase throughout an individual’s prime working years, so should their savings, creating an opportunity to take advantage of compound growth.”

Growing your wealth the simple way

Whether you’re five or 15 years away from retirement, it’s always a good idea to start taking advantage of compound growth as early as possible and build that nest egg.

Wealthsimple Portfolios makes it easier than ever to build a nest egg that can help reduce your reliance on government benefits later on.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re planning for a comfortable early retirement or steady growth over the long term, there’s a portfolio designed for you.

You can automate your contributions inside an RRSP or TFSA and let Wealthsimple handle the heavy lifting: managing risk, rebalancing your portfolio and reinvesting dividends.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple’s advisors must put your financial interests first.

It’s a simple, low-fee way to stay invested without constantly watching the markets. And when you open your first account and deposit at least $1 within 30 days, you’ll get a $25 bonus.

For a limited time, transfer $25,000 or more into an eligible Wealthsimple account and earn up to a 3% match, plus a chance to win a $3-million home. Offer ends March 31, 2026. Visit Wealthsimple for up-to-date terms and conditions.

Stay informed to get ahead of the curve

If you want to expand your own circle of competency rather than relying on others, it might be worth working with experts to build out your knowledge.

One option is to work with a stock analysis platform such as The Motley Fool, which can help you deepen and broaden your investing knowledge on your own terms.