Retirement continues to make Canadians anxious, with most fearing outliving their savings. Higher inflation and market volatility are adding to the anxiety as Canadians struggle to stay on track with retirement savings, according to the 2026 BlackRock survey. These concerns are valid, as many Canadians know that the Canada Pension Plan (CPP) and Old Age Security (OAS) alone probably won’t cover retirement.
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Are CPP and OAS enough for a comfortable retirement?
The Canada Revenue Agency (CRA) has a formula to calculate your CPP and OAS payout. This payout is adjusted for inflation but can cover only a third of your retirement needs. While you cannot calculate your CPP payout if your retirement is decades away, you can make an educated guess about the percentage of expenses these benefits can cover.
As of January 2026, the maximum CPP payout is $1,507.65, but to earn it you must have been in a higher salary bracket and maxed out on CPP contributions for 40 years. This means you can either get the maximum CPP or the Guaranteed Income Supplement (GIS), which is for low-income earners. It is very rare to get both. OAS payout is also bound by taxable income, but you can get the maximum payout because of the high income threshold.
Based on the above logic, you can get anywhere between $2,200 and $2,700, rounding off figures to the lower range. But is this amount enough to retire?
| Benefits | Maximum | Average | 2025 Taxable Income |
| CPP | $1,507.65 | $858.34 | |
| OAS | $762.50 | $762.50 | Less than $152,062 |
| GIS | $1,138.90 | Less than $23,112 | |
| Total retirement benefit | $2,270.15 | $2,759.74 |
The 2026 minimum tax bracket begins with annual income of $0 to $58,523. If you earn this amount, your monthly salary is $4,876.92, which is 47%–57% of what CPP, OAS, and GIS (if applicable) offer combined.
| Annual Income | $58,523 | |
| Monthly Income | $4,876.92 | |
| Retirement Benefit | $2,270.15 | $2,759.74 |
| Retirement Benefit as % of Income | 47% | 57% |
You can calculate your expenses or minimum monthly income you need to survive today and divide it by the retirement benefits to gauge the retirement gap.
How to fill the retirement gap
To fill the retirement gap, you need investments that can adjust to inflation and different life stages. This calls for a mix of future growth stocks and stable dividend growth stocks.
Growth stocks to adjust investments to your life stages
If you want a payout in the future, invest in futuristic stocks like Hut 8 Corporation (TSX: HUT) and Ballard Power Systems (TSX: BLDP). They are addressing major trends in power infrastructure for artificial intelligence (AI) data centres and hydrogen-powered fuel cells.
Hut 8 is building a gigawatt-capacity facility and has secured a 15-year lease that will generate cumulative base revenue of US$16.8 billion, which can go up to US$42.8 billion if used at maximum capacity. However, it will take time for these revenues to be realized. Till then, Hut 8 will shell out capital to build the power infrastructure. Its stock price rode the first round of the exponential AI rally of 800% from September 25, 2024 to September 25, 2026, as investor optimism around AI grew. The stock has almost halved since June 2026 as AI momentum slowed. If you are bullish about AI, you can buy this stock at the dip.
Another growth angle is alternative fuel. As countries fight for oil and gas, hydrogen can prove to be a strong alternative for transportation fuel and help reduce dependence on oil stocks. Ballard Power Systems has commercialized its hydrogen fuel cell technology and hired a professional management team to make it profitable and shareholder-friendly. It has yet to have its exponential growth moment. If you believe your kid will be driving a hydrogen car when he/she turns 20, Ballard Power Systems may likely give your investments that boost.
Dividend growth stocks to give inflation-adjusted passive income
While growth stocks can boost your investment toward your future reality, dividend growth stocks can silently build assured income. Royal Bank of Canada (TSX: RY) is a good option given its stable dividends and 24-year record of growing dividends at an average annual rate of 10%. The only two years it skipped growing dividends were 2009 and 2010 (Global Financial Crisis).
