Episode 74: How Much Money Do I Need to Retire in Canada?

Published June 29, 2026

Do you need $1 million to retire?
What about $2 million?
The reality is that retirement success isn't determined by a single savings target. It's determined by whether your income can support the life you want to live.

In this episode of Money Monday, Darren Devine, Financial Planner with Sun Life and President of Devine & Associates, tackles one of the most frequently asked retirement questions:

"How much money do I need to retire in Canada?"

While many people search for a specific dollar amount, retirement planning begins with a different question:

What lifestyle do you want your retirement income to support?

This episode explores:

→ Why retirement planning starts with income rather than a savings target
→ How CPP, OAS, and workplace pensions can contribute to retirement income
→ How to identify your personal retirement income gap
→ Why longevity and inflation must be considered in retirement planning
→ The factors that make retirement needs unique for every household

You'll learn why two Canadians with identical savings balances may have very different retirement outcomes—and why sustainable income often matters more than reaching an arbitrary milestone.

Because retirement planning isn't about accumulating the largest account possible.
It's about creating enough reliable income to support the life you want, for as long as you need it.

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How much money do you actually need to retire in Canada?

Presented by Darren Devine, CFP®, CLU®, Financial Planner, Sun Life and President of Devine and Associates Financial Services Inc.

Is it $1 million?

$2 million?

More?

The honest answer might surprise you.

Hello, and welcome to Money Monday, where we help simplify your financial journey.
I'm Darren Devine, Financial Planner with Sun Life and President of Devine & Associates. I’ve been helping families across Ontario plan, protect, and enjoy their retirement income for over 20 years.

And this is one of the most common questions we hear.

But it’s also one of the most misunderstood.

Let’s break it down into four bite size pieces.

Step 1: Stop Thinking in Lump Sums

Most people search for a retirement “number.”

But retirement planning doesn’t start with a savings target.

It starts with income.

What monthly lifestyle do you want to support?

For many Canadian households, that falls somewhere between 60–80% of their pre-retirement income. That’s

often used as a planning guideline — but it’s not universal.

Some need less.

Some need more.

Your lifestyle determines the target — not a headline number.

Step 2: Account for Government Income

In Canada, retirement income often includes:

  • CPP
  • OAS
  • Employer pensions (if applicable)

For a couple, CPP and OAS combined could provide several thousand dollars per month depending on contribution history and start age.

That government income reduces the amount your personal savings need to generate.

Step 3: Calculate the Income Gap

Let’s say a couple wants $6,000 per month after tax to feel comfortable.

If government sources provide $3,000–$4,000 per month combined, then their investments only need to cover the remaining gap.

This is where proper planning matters.

Because the number isn’t random.

It’s calculated.

Step 4: Consider Longevity and Inflation

Retirement today can last 25–30 years or more.

And inflation continues even after you stop working.

That means your plan must:

  • Last long enough
  • Adjust for rising costs
  • Handle market volatility

This is why simple “one number” answers rarely tell the full story.

So… Is There a Typical Number?

You may hear figures like $1 million suggested in media discussions.

But here’s the truth:

  • The amount you need depends on:
  • Your desired lifestyle
  • Your age at retirement
  • Your health
  • Your housing situation
  • Other income sources
  • Your tax strategy

For some Canadians, $700,000 invested strategically is sufficient.

For others, even $2 million may not be enough.

It’s not about hitting a milestone.

It’s about covering a lifetime income need.

The Real Question

Instead of asking:

“How much money do I need?”

A better question might be:

“What income do I want — and how do I structure it efficiently?”

Because retirement success isn’t measured by account size.

It’s measured by sustainable income and confidence.

If you’re unsure whether you’re on track, we can help you calculate your personal retirement income target and determine what level of savings supports it.

Clarity changes everything.

Thanks for tuning into Money Monday. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!

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