Apr. 20: BEST OF THE BLOGOSPHERE

April 20, 2026

Canadians’ retirement savings goals are “ambitious,” but we aren’t confident we’ll reach them: BMO research

While it appears Canadians are aware of the need to save for retirement, a recent survey carried out by BMO suggests more than a third of us aren’t confident we’ll reach our savings targets.

BMO recently published their findings via a media release.

Canadians, the release begins, now believe they need “$1.7 million to retire comfortably – up from $1.54 million last year.” However, a full 36 per cent of those surveyed “say they are unlikely to reach that target – an increase from 29 per cent last year,” the release notes.

“The findings indicate growing uncertainty about the future as rising costs and economic concerns challenge long-term financial planning goals,” the release adds.

“Setting savings goals is essential, but turning those goals into reality is where the real work begins,” states Terri Szego, Senior Portfolio Manager and Senior Wealth Advisor, BMO Nesbitt Burns, in the release. “We help clients refine their objectives and build clear, actionable plans, using advanced tools to show exactly what it takes to reach their long-term financial goals. Big numbers can feel overwhelming, so we break them down into achievable steps to keep clients confident, motivated, and on track to help them make real financial progress,” Szego states.

Tables in the release show that B.C. residents have the highest retirement savings target, $2.201 million. Next comes Ontario at $1.923 million, Alberta at $1.658 million, Saskatchewan and Manitoba at $1.278 million, Quebec at $1.237 million and Atlantic Canada at $928,000.

When you try and figure out the Canadian retirement savings rate, the release notes, you learn that:

• 28 per cent save less than five per cent of their income
• 38 per cent save five to 10 per cent of their income
• 21 per cent save more than 10 per cent of their income

The survey also looked at how much people are saving for retirement each month. According to the release:

• 10 per cent save less than $100
• 23 per cent save $100 to $499
• 10 per cent save $500 to $999
• 12 per cent save over $1,000

BMO experts suggest you should ramp up retirement savings as your income increases.

“Deciding how much to save for retirement is a personal choice and depends on many factors, but thinking in percentage terms can help with long term planning, so someone in their 20s, contributing 10 per cent a month to an RRSP can be a great start,” states Margaret Leong, Senior Investment Counsellor and Portfolio Manager, BMO Private Wealth, in the release. “As earnings increase throughout an individual’s prime working years, so should their savings, creating an opportunity to take advantage of compound growth and build a more secure retirement. Every extra dollar saved brings people closer to the retirement they envision.”

A solution to not saving enough, the release continues, is to continue working.

“Some Canadians say they plan to never retire and while their reasons to remain employed may vary, according to the survey, of those that are not retired, 14 per cent say they do not plan to stop working. While many of the Boomers surveyed indicate they are already retired, of those that have not retired, a full 27 per cent say they do not plan to stop working. The survey also reveals that 20 per cent of Gen X, 18 per cent of Millennials and 15 per cent of Gen Z say that they do not plan to retire,” the release tells us.

Closing thoughts from the release are to start retirement planning early, be disciplined about budgeting so that savings are treated “as a regular expense,” and that securities can be contributed to a registered retirement savings plan “in kind.” As well, the release concludes, consider seeking professional advice to help your savings efforts.

Among the advantages of the Saskatchewan Pension Plan is that there is no set “contribution rate” that is required – you can decide how much you want to contribute. You can start small and ramp up as your income increases or as circumstances permit.

The heavy lifting of investing those contributions will be managed – professionally, and at a low rate – by SPP, via its pooled fund. When it’s time to retire, your options include the security of a monthly lifetime annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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BMO

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