Canadians believe they need $1 million to retire comfortably: report

A new study reveals Canadians feel they need to save over a million dollars to retire.

Canadians preparing to retire believe they need $1 million or more to retire comfortably, according to Fidelity Canada’s 2025 retirement report.

This is the 20th year for the annual report, which shares the latest insights on Canada’s retirement landscape. The study was done between March 13 and March 28, 2025, with 2,000 Canadians surveyed. The median age of participants was 62.

Here are some of the report’s key findings:

• 88 per cent of respondents agree retirement today is more complex than it was 20 years ago
• pre-retirees aged 45 and up believe they need at least $1,020,000 to achieve a comfortable retirement – more than double the amount 20 years ago
• in 2005, the same age group felt they needed $447,000 to retire, which equates to $685,000 in 2025
• 81 per cent of retirees feel positive about retirement, while only 59 per cent of pre-retirees feel positive
• 85 per cent agree retirement is about transitioning to flexible work arrangements or passion projects rather than stopping work completely

Many Canadians also said they would like to ensure the financial security of the next generation before they pass away.

“People are looking to have a more expensive retirement. With that we’re thinking travel as well as people understanding that they’re living longer and the third piece is that people are also helping launch the next generation so supporting their adult children,” Michelle Munro, Fidelity Investments Canada’s tax and retirement research director said.

Inflation, current turmoil in world politics and poor economic growth were cited as the main concerns for Canadians, according to the report. Uncertain times can affect pre-retirees, who are still in a period of accumulating wealth to support their retirement.

“The big concern that people who are getting to an age that were thinking of retiring is whether or not they can afford to retire yet,” Bill Van Gorder, a spokesperson for the Canadian Association of Retired Persons Atlantic said.

Due to rising costs of living, 46 per cent of pre-retirees say they might postpone retirement to later than they planned. In 2005, the average age of retirement was 61, which has risen to 65 in 2025. Only 26 per cent of current pre-retirees plan to retire under 65.

Canadians who have a financial advisor and written financial plan say they feel more prepared for their retirement.

Women and those not born in Canada had a less positive outlook on their retirement. Fidelity Canada said this shows there isn’t a one-size-fits-all approach to financial planning.