There is no single number: it depends on what you will spend, how much CPP, OAS and any workplace pension will pay, and how long your savings must last. This page walks through the calculation in three steps, with examples, and shows how delaying CPP or working longer changes the result. It is part of the retirement planning hub; am I saving enough for retirement covers benchmarks and the retirement calculator projects your own numbers.
Why the number varies
- Your spending in retirement: travel, housing and health costs vary widely.
- When you retire: retiring earlier means more years to fund.
- Your CPP: from nothing up to $18,092 a year at 65 (pension starting in January 2026), depending on your earnings record.
- Your OAS: from 65, up to $9,150 a year at 65 to 74 (October to December 2026), depending on years lived in Canada.
- Other income: a workplace pension, rental income, part-time work.
- Where you live and whether your home is paid off.
Step 1: estimate your retirement spending
Start from what you spend now, not what you earn: take out what stops in retirement (saving, payroll deductions, work costs, a mortgage that will be paid off) and add what may rise (travel, health and dental costs once workplace benefits end). Some people use a share of current income as a first estimate; your own budget is more accurate.
Step 2: subtract guaranteed income
| Source | Amount |
|---|---|
| CPP retirement pension, maximum at 65 (starting in January 2026) | $18,092 a year |
| CPP retirement pension, average new pension (July 2026) | $10,300 a year |
| OAS pension, maximum at 65 to 74 (October to December 2026) | $9,150 a year |
| GIS, maximum for a single pensioner with no other income (October to December 2026) | $13,667 a year |
Your own CPP estimate is in My Service Canada Account (your CPP statement), and the CPP calculator converts it to other start ages. A workplace pension statement shows the pension you have earned.
Step 3: turn the gap into a savings target
Subtract guaranteed income from spending to get what your savings must provide each year. Dividing that by a withdrawal rate gives a savings target; at 4%, that is the same as multiplying by 25.
For example, with spending of $68,000 a year and $20,000 a year of CPP and OAS, savings must provide $48,000 a year, which at 4% means about $1,200,000 of savings.
| Spending | CPP and OAS assumed | From savings | Savings target at 4% |
|---|---|---|---|
| $50,000 | $20,000 | $30,000 | $750,000 |
| $60,000 | $20,000 | $40,000 | $1,000,000 |
| $80,000 | $26,000 | $54,000 | $1,350,000 |
| $100,000 | $26,000 | $74,000 | $1,850,000 |
These targets are before tax: withdrawals from an RRSP or RRIF are taxable, TFSA withdrawals are not. The withdrawal rate itself is a planning assumption, not a guarantee.
How delaying CPP changes the number
The CPP retirement pension is 0.7% larger for each month you start after 65, up to 42% at 70:
| Start age | Maximum a year (pension starting in January 2026) |
|---|---|
| 60 | $11,579 |
| 65 | $18,092 |
| 70 | $25,690 |
At the maximum, starting at 70 instead of 65 adds $7,599 a year for life, which at 4% is worth about $189,963 of savings. The cost is the pension you don’t receive in between, which your savings have to cover instead; delaying CPP until 70 weighs the two.
With a defined benefit pension
A defined benefit pension changes the calculation most. It is paid in addition to CPP and OAS (some plans pay a bridge benefit until 65 and then reduce), and at a 4% withdrawal rate a pension of $50,000 a year stands in for about $1,250,000 of savings. How much you still need to save depends on the size of the pension and whether it is indexed to inflation.
How Canadians compare
In Statistics Canada’s 2023 Survey of Financial Security, the median net worth of families whose main earner was 55 to 64 was $873,400, much of it home equity. Among those families holding an RRSP or RRIF (70%), the median held was $120,000; among those with a TFSA (56.2%), $39,100. That is why CPP and OAS, home equity and spending flexibility matter so much for most households. Net worth by age has the full tables.
Ways to close a gap
- Saving more, including unused RRSP and TFSA room (RRSP room, TFSA room).
- Working a few years longer: more saving years, fewer years to fund, and possibly larger CPP and OAS.
- Spending less in retirement: at 4%, each $1,000 a year less spending lowers the target by $25,000.
- Using home equity, by downsizing or a reverse mortgage.
- Part-time work early in retirement, which reduces withdrawals in the years when a market fall does the most damage.
Inflation matters over a long retirement: at 2% a year, prices grow by a factor of 2.0 over 35 years, so projections that ignore inflation overstate what savings will buy.
Related resources
Sources
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: CPP contribution rates, maximums and exemptions
- financialplanningassociation.org: FPA Journal - The Best of 25 Years: Determining Withdrawal Rates Using Historical Data
- Government of Canada: Canada Pension Plan β Monthly payment amounts
- Government of Canada: CPP: When to start your retirement pension
- Government of Canada: Old Age Security payment amounts
- Government of Canada: Old Age Security pension recovery tax
- Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces andβ¦