Canadians Reveal Retirement Savings Goal – BMO Survey Shows Surprising Number

Canadians Reveal Retirement Savings Goal: When it comes to retirement, Canadians are aiming higher than ever before. A 2025 BMO Retirement Savings Survey reveals surprising insights about how much Canadians plan to save for their retirement. Despite increasing financial pressures, a large number of Canadians are targeting $1.7 million in retirement savings. This number is significantly higher than what many may have expected, especially when considering the challenges associated with rising housing costs, inflation, and stagnant wages. But what does this goal mean for Canadians’ long-term financial planning, and how can they realistically achieve it?

In this article, we will explore the findings of the BMO Retirement Savings Survey, discuss the main factors influencing Canadians’ retirement goals, and provide actionable advice on how to close the gap between the average savings goal and actual savings.

Canadians Reveal Retirement Savings Goal

As the BMO Retirement Savings Survey shows, Canadians are setting high goals for their retirement savings, with many aiming for $1.7 million. While this goal may seem out of reach for some, it is achievable with careful planning, consistent savings, and smart investments. By starting early, maximizing tax-advantaged accounts, and focusing on reducing debt, Canadians can improve their chances of meeting their retirement goals and securing a financially stable future.

The Surprising Goal: $1.7 Million

According to the BMO Retirement Savings Survey, the average goal for Canadian retirement savings has reached $1.7 million. This figure may seem eye-popping, especially given the financial challenges many Canadians face today. Rising housing costs, student debt, and overall economic uncertainty have made it harder for people to set aside large amounts for the future. Yet, this goal reflects a growing awareness of how much Canadians need to maintain their lifestyle post-retirement without depending solely on government benefits.

Why This Goal is So High

The $1.7 million target isn’t just a random number; it’s a response to some of the rising concerns about retirement. Canadians today are living longer, facing higher healthcare costs, and looking for ways to maintain a comfortable lifestyle. For many, the goal of $1.7 million is a way to achieve financial independence, secure their healthcare needs, and maintain their standard of living.

Interestingly, respondents from Ontario have set the highest retirement savings goal of $1.9 million, which could be due to the higher costs associated with living in cities like Toronto and Ottawa.

How Much Have Canadians Actually Saved?

While Canadians have set ambitious savings goals, the actual amount many have saved for retirement paints a different picture. On average, Canadians have saved approximately $200,000 for retirement, which is far below the $1.7 million goal. This highlights a gap between goals and reality, indicating that many Canadians may face challenges in reaching their target retirement savings.

Survey Insights:

• 70% of Canadians are actively saving for retirement.
• 30% of Canadians have yet to start saving for retirement.
• 50% of Canadians feel uncertain about whether they can achieve their $1.7 million goal.
• 35% are relying on Canada Pension Plan (CPP) and Old Age Security (OAS) as a substantial portion of their retirement income.

This survey shows that while Canadians are aware of the need for retirement savings, the actual amount saved is not enough to meet their lofty targets.

Factors Affecting Retirement Savings Goals

Several factors are contributing to the gap between savings goals and actual savings. From high living costs to insufficient financial education, there are a number of challenges Canadians face as they attempt to build retirement wealth.

1. Rising Cost of Living

The cost of living has increased dramatically in many parts of Canada, particularly in urban areas. Cities like Vancouver, Toronto, and Montreal are known for their high housing costs, which leave little room for retirement savings. Young Canadians, in particular, are struggling with student loans, high rents, and the cost of raising children, which makes it difficult to prioritize retirement.

2. Lack of Financial Literacy

Although more Canadians are saving for retirement, many still lack a solid understanding of how to invest and plan for the future. The survey found that only 45% of Canadians felt confident in their knowledge of retirement planning. A lack of financial education can lead to missed opportunities for Canadians to grow their savings through investments such as RRSPs and TFSAs.

3. Short-Term Financial Pressures

For many Canadians, short-term financial needs often take precedence over long-term savings. Issues like credit card debt, student loans, and mortgage payments can make it difficult to consistently contribute to retirement savings accounts. The survey found that 55% of Canadians feel they cannot afford to save aggressively for retirement because of immediate financial obligations.

What Can Canadians Do to Achieve Their Retirement Goals?

While the $1.7 million goal may seem ambitious, there are concrete steps Canadians can take to increase their chances of achieving their retirement target. It’s important to start early, invest wisely, and stay disciplined in your savings approach. Below are some actionable strategies to help you get on track:

1. Start Saving Early

The earlier you start saving for retirement, the easier it will be to reach your financial goals. Even small contributions to a RRSP or TFSA can grow over time due to the power of compound interest. If you’re young, even saving a small amount every month can have a huge impact on your retirement savings decades down the road.

2. Contribute Regularly

Consistency is key when it comes to retirement savings. Setting up automatic contributions to your retirement accounts ensures that you’re consistently putting money away for the future. Try to increase your contributions over time as your income grows, and make sure to take full advantage of your employer’s pension plan if available.

3. Maximize Tax-Advantaged Accounts

In Canada, there are several tax-advantaged savings options, such as RRSPs and TFSAs. These accounts allow your investments to grow without being taxed, which can significantly accelerate your savings. If possible, try to max out your contributions to these accounts each year to take full advantage of the tax benefits.

4. Invest Wisely

While saving is important, investing your money is crucial to growing your wealth. Consider a diversified portfolio of stocks, bonds, and other investments to maximize returns over the long term. If you’re unsure where to start, consulting a financial advisor can help you develop an investment strategy that fits your risk tolerance and goals.

5. Focus on Reducing Debt

Reducing high-interest debt, such as credit card balances, can free up more money for savings and investment. Paying off student loans and mortgages can also relieve financial stress and allow you to contribute more to your retirement accounts.

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Will Canadians Be Able to Reach Their Retirement Goals?

Achieving the $1.7 million target is possible, but it will require careful planning, consistency, and a disciplined approach to saving. While many Canadians are currently falling short of their savings goals, the BMO survey highlights a growing awareness of the need for retirement savings. With the right mindset and strategic planning, Canadians can work towards meeting their goals, even if the $1.7 million target feels out of reach right now.

By maximizing tax-advantaged accounts, investing wisely, and prioritizing savings, Canadians can make significant progress toward achieving their retirement aspirations.

FAQs On Canadians Reveal Retirement Savings Goal

1. What is the average retirement savings goal for Canadians?
   • The average retirement savings goal for Canadians is $1.7 million, according to the BMO Retirement Savings Survey.
2. How much do Canadians actually have saved for retirement?
   • On average, Canadians have saved about $200,000 for retirement, which is far below the target savings goal.
3. What is the best way to start saving for retirement?
   • Start early by contributing regularly to tax-advantaged accounts like RRSPs and TFSAs. Consider setting up automatic contributions to make saving easier.
4. How can I catch up on retirement savings if I start late?
   • Increase your contributions to retirement accounts, reduce high-interest debt, and invest wisely to maximize the growth of your savings.