How Much Do I Need to Retire in Canada?

There’s no single “right” number for everyone in Canada, but you can get a useful range with a few simple rules of thumb.

A common starting point:

• Plan to replace about 70% of your pre-retirement income

• Or build a nest egg of roughly 25x your expected yearly spending in retirement (often called the “4% rule”)

So if you think you’ll need $40,000 a year in retirement, you might aim for around $1,000,000 in invested assets (40,000 × 25).

If you can live comfortably on $30,000, that target drops to around $750,000.

These aren’t exact—just a way to start thinking about your number.

KOHO Can Help You Work Toward That Number

Government benefits and pensions help, but a lot of your retirement comfort comes from your own savings and habits.

KOHO Everything plan can support that by making your day-to-day money work harder:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

What Changes Your Retirement Number?

Your target isn’t just about age—it’s about your lifestyle and safety nets:

• Housing:

  • Own your home with a paid-off mortgage? You may need less.

  • Expect to rent in retirement? You may need more, since rent doesn’t disappear.

• CPP, OAS, and pensions:

  • If you’ll get CPP and OAS, that’s some guaranteed monthly income.

  • If you also have a work pension, your personal savings target may be lower.

• Lifestyle choices:

  • Frequent travel, hobbies, and helping kids/grandkids all raise your number.

  • A simpler lifestyle in a lower-cost area can lower it.

• Health and longevity:

  • Planning to be cautious? Aim as if you’ll live well into your 90s so you don’t outlive your money.

A Simple Way to Get Your Own Rough Target

1. Estimate how much you’d like to spend per year in retirement (today’s dollars).

2. Subtract expected income from CPP/OAS/pensions.

3. Multiply the remaining yearly amount by 25 to get a ballpark savings goal.

Example:

• Want to spend: $50,000/year

• Expect CPP + OAS + pension: $20,000/year

• Gap: $30,000/year → Target savings ≈ $750,000 (30,000 × 25)