Jul. 20: BEST OF THE BLOGOSPHERE

July 20, 2026

Taking a look at what Canadian retirees actually live on

A recent Money Canada article by Noel Moffatt reveals some surprising numbers when it comes to the question of what Canadian retirees are actually living on.

“A newly retired Canadian opens their first government deposit to see their retirement benefits. The Canadian Pension Plan (CPP) and Old Age Security (OAS) payments are available, but they total only about $1,530 per month. After working for decades, that amount is often shocking to retirees,” Moffatt begins.

And, he continues, most of us – even with personal savings added in – don’t do much better than that average base.

“According to Statistics Canada, the median after-tax income for individual seniors in Canada is about $31,400 per year, or roughly $2,617 per month. That amount pales in comparison to most working wages in Canada,” he writes.

That got Moffatt wondering.

“So, how much do Canadian retirees actually live on each month? Where does the money come from, and is it enough?,” he asks.

“The median retirement income data for Canadians paints a more realistic picture for most households,” he writes. “For individual seniors, that figure drops to about $31,400 annually, or $2,617 per month. The median senior couple will earn about $64,300 per year,” he reports.

“These totals include all of the retirement benefits that Canadians rely on, including CPP, OAS, the Guaranteed Income Supplement (GIS), pensions and personal savings, as applicable,” Moffatt adds.

The article then takes a look at where this income is coming from.

“For most Canadians, retirement income comes from a combination of the three pillars: government retirement benefits, workplace pensions and personal savings and investments,” he explains. “The first pillar includes things like CPP, OAS and GIS Canada, which some seniors may qualify for. In 2025, the average CPP payment was about $772 per month, while the maximum benefit was $1,364.60. For OAS, the monthly payment was $713.34, and for seniors over 75, it was increased to $784 per month,” he continues.

For low-income seniors, the GIS can add up to $1,065.47 per month, Moffatt notes.

The second pillar, Moffatt continues, is “the employer-provided pension.”

While pensions can be a valuable part of the overall income picture, not that many Canadians have access to them, Moffatt notes. “According to Statistics Canada, more than 6.6 million Canadians are a part of registered pension plans, even though fewer than one-third of workers have employer-sponsored pensions,” he notes.

The final pillar is personal savings, he writes.

“This includes investments in registered retirement savings Plans (RRSPs), registered retirement income funds (RRIFs), Tax-Free Savings Accounts (TFSAs) and non-registered investments. For Canadians without pensions, these savings often determine how comfortable retirement feels,” he continues.

The message in this article is quite clear. If you are thinking that you don’t really need to save for retirement because you’ll get CPP, OAS and maybe GIS, those benefits deliver a very modest benefit.

If you don’t have a pension program through work, don’t worry – all Canadians with available RRSP room have the option of joining the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution plan. You decide how much to contribute – any amount up to your annual RRSP limit – and SPP does the rest.

You can also transfer in any amount from other RRSPs you may have.

Contributions are invested in our low-cost, diversified, professionally managed pooled fund. At retirement, you will have created your own retirement income pillar – and your SPP funds can be collected as a monthly lifetime annuity payment or the more flexible Variable Benefit, among other options.

Check out SPP today!

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