How much money do Canadians need to retire?

• Rules of thumb such as "70% of pre-retirement income" are starting points, not conclusions.
• Government benefits provide a base but rarely fund a full lifestyle on their own.
• Mortgage-free retirees generally need substantially less capital than renters.
• Withdrawal-rate assumptions drive the result more than most people expect.
• Projections should be stress-tested against lower returns and a longer life.

Suppose a household needs $70,000 per year after tax and expects $30,000 from CPP and OAS combined. The remaining $40,000 must come from savings. At a 4% initial withdrawal assumption, that implies roughly $1,000,000 of invested capital, before adjusting for taxes on registered withdrawals. Change the withdrawal assumption to 3% and the requirement rises to about $1,333,000.

Housing status, retirement age, health costs, whether income is taxable, planned support for children or parents, and how long the money must last. Two households with identical savings can face very different outcomes.

Part-time work, rental income, downsizing a home, an annuity, or business sale proceeds can all reduce the capital required. Each carries its own risk and tax profile.

• The 4% figure is a planning convention, not a guarantee or a rule set by any regulator.
• Registered withdrawals are taxable, so the gross amount needed exceeds the after-tax target.
• Reviewing the projection every year is more useful than getting a perfect answer once.

• Canada Pension Plan and Old Age Security — Government of Canada
• Statistics on Canadian household income, savings and retirement — Statistics Canada
• Insurance and financial basics for consumers — Financial Consumer Agency of Canada