Is there a retirement savings target in Canada? A BMO annual retirement survey conducted in 2025 and released in February 2026 suggests there might be. The amount is $1,700,000, although a survey-based estimate is not necessarily a hard-and-fast rule.
Poll researchers said the figure represents the average amount that 1,500 adult respondents nationwide believed they would need to retire comfortably. About 36% said they are unlikely to reach their retirement savings goals amid rising costs and economic challenges. Moreover, 14% expect to keep working and never retire.
However, there are ways to check your numbers. Your retirement target should reflect your circumstances, the lifestyle you envision, and your expected expenses. The ultimate goal is to secure reliable income from various sources, including government benefits, pensions, and investments. You can determine how much you really need.
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Starting point: Foundational retirement income
Take stock of the income you can expect in retirement before deciding how much you need to save. Start with the foundational sources such as the Canada Pension Plan (CPP), Old Age Security (OAS), and a workplace pension, if you have one. They partially replace employment income. Besides covering part of living expenses, they reduce the amount you need to withdraw from personal savings and investment income.
Let us use the current CPP ($858.34 average) and OAS ($762.50 maximum) monthly benefits for Canadians retiring today at age 65. Combined CPP and OAS benefits total $19,450.08 or $1,620.84 monthly. Factor in your workplace pension, if any. Also, the maximum OAS assumes you meet the 40-year Canadian residency requirement after age 18.
Bridge the income gap
Many financial planners suggest using the 4% Rule in retirement planning. Based on the $1.7 million estimate, this withdrawal rate translates to $68,000 a year, or $5,666.67 per month. With CPP and OAS, the remaining income gap reduces to $48,549.92, or $4,045.83 per month.
A stock investment portfolio with a pure dividend income approach can fill the remaining annual gap. Your choice of anchor stock determines your overall capital requirement, depending on your risk tolerance.
The anchor stock advantage
Enbridge (TSX: ENB) is a classic anchor for income-focused Canadian investors. The $150.4 billion energy infrastructure giant has paid dividends for more than seven decades, including 31 consecutive years of dividend increases. This makes the blue-chip stock a rock-solid wealth builder and a reliable retirement income provider. Its regulated pipeline and utility assets generate stable, uninterrupted cash flows.
ENB trades at $66.51 per share and pays a generous 5.8% dividend. Assuming the yield remains constant, the capital required to generate $48,549.42 is $832,760.21. The math shows that $1.7 million is an arbitrary baseline. Canadians can fill the annual income gap with significantly less capital.
You can pair Enbridge with other industry leaders from sectors like financials, utilities, and communications services to mitigate market risks.
Retirement planning is personal
The seven-figure retirement target may seem ambitious, even discouraging to prospective retirees. Remember, however, long-term retirement planning is personal and should not be dictated by public opinion. You are free to customize your strategy. By combining your guaranteed benefits with high-quality income investments, you can make your ‘real’ savings target more achievable.
