TORONTO: Canadians now say they need about C$1.7 million to retire comfortably, while a growing share doubt they will reach that mark, according to Bank of Montreal’s latest annual retirement survey released Feb. 24. The survey put the average retirement target at C$1.706 million, up from C$1.541 million in the prior annual reading. More than one third of respondents, 36%, said they are unlikely to hit their retirement savings target, compared with 29% a year earlier.
BMO said the latest result marked a year over year increase of about C$160,000 in the amount Canadians believe they need to retire. In the bank’s annual series, the average target has ranged from about C$1.349 million in 2019 to C$1.743 million in 2022. The latest survey was conducted online by Pollara Strategic Insights among 1,500 Canadian adults from Nov. 4 to Nov. 10, 2025, and results were weighted by gender, age and region.
Retirement targets varied sharply across the country, with British Columbia posting the highest average target at C$2.201 million, followed by Ontario at C$1.923 million and Alberta at C$1.658 million. Respondents in Saskatchewan and Manitoba reported an average target of C$1.278 million, while Quebec was at C$1.237 million. Atlantic provinces posted the lowest average target at C$928,000, underscoring how retirement expectations differ widely by region in Canada.
Savings rates lag targets
BMO’s survey also tracked how much Canadians say they are putting aside for retirement, both as a share of income and in monthly dollar terms. The bank noted that saving 10% of income is often used as a benchmark. In the latest results, 28% said they save less than 5% of their income for retirement, 38% said they save 5% to 10%, and 21% said they save more than 10%.
In dollar terms, 10% said they save less than C$100 per month for retirement, while 23% reported saving C$100 to C$499 a month. Another 10% said they save C$500 to C$999 monthly, and 12% reported saving more than C$1,000 a month. Separately, BMO said the survey found strong demand for financial guidance, with 89% of investors saying their advisor helps them meet financial goals, including 44% who agreed strongly.
Working longer reshapes retirement
The survey also found a segment of Canadians plans to keep working rather than fully exiting the labor force. Among respondents who are not retired, 14% said they do not plan to stop working. Among Boomers who have not retired, that figure rose to 27%. By generation, 20% of Gen X respondents, 18% of Millennials and 15% of Gen Z respondents said they do not plan to retire, pointing to a notable share across age groups expecting to work through traditional retirement years.
BMO has also linked retirement confidence to near term cost pressures. In a separate retirement survey release dated Feb. 17, the bank reported that 74% of Canadians said rising inflation increased concerns about having enough money saved for retirement, and 66% said inflation was already affecting their ability to save and invest. Among those who said inflation hurt their finances, 47% estimated they were spending C$100 to C$300 more per month on necessities, and 34% put the increase above C$300. BMO Financial Group reported total assets of $1.5 trillion as of Oct. 31, 2025. – By Content Syndication Services.