Canadians think they need to save this much money in order to retire: BMO survey

Numbers vary as to how much Canadians think they need to save in order to retire, according to a BMO survey.

Canadians are giving a wide array of retirement targets depending on their location, with new survey data offering an idea of how much money they believe they need to save in order to retire.

According to an annual retirement survey from the Bank of Montreal, or BMO, Canadians estimate they need an average of $1.7 million to retire comfortably — up sharply from about $1.54 million last year. But the perceived target varies widely by region.

B.C. tops the list, where residents say they need about $2.2 million to retire — the highest estimate in the country. Ontario follows at roughly $1.9 million, while Albertans put their retirement target at about $1.66 million.

In contrast, Canadians in Prairie provinces like Saskatchewan and Manitoba report needing closer to $1.28 million, while Quebec residents estimate they will need about $1.24 million. Atlantic Canada has the lowest perceived retirement threshold, at approximately $928,000 - less than half of what people in B.C. believe they require.

The survey suggests these regional differences are largely tied to variations in housing costs and overall cost of living, which can affect how much people feel they must save to maintain their lifestyle after leaving the workforce.

Despite setting higher retirement goals, many Canadians remain unsure they will reach them. More than one-third of respondents (36 per cent) say they are unlikely to meet their savings targets, an increase from 29 per cent a year earlier.

Savings behaviour also varies widely. While financial planners often recommend setting aside about 10 per cent of income for retirement, the survey found that 28 per cent of Canadians save less than five per cent and another 38 per cent save between five and 10 per cent.

Nearly one-fifth (21 per cent) report saving more than the recommended threshold.

Monthly contributions also differ. About one in ten Canadians say they save less than $100 per month, while roughly one-third report saving between $100 and $499. A smaller group — around 12 per cent — say they set aside more than $1,000 monthly.

The survey also highlights the shifting attitudes towards retirement itself. About 14 per cent of Canadians say they do not plan to retire at all.

Of the Boomers surveyed, many indicate they are already retired. However, of those that have not retired, 27 per cent say they do not plan to stop working.

The survey also shows that 20 per cent of generation Xers, 18 per cent of millennials and 15 per cent of generation Z respondents say that they do not plan to retire.