Pensive man
“People say you need 1.5 – 2M to retire. I’m in my late 40s and have only about 400K in pensions and savings … Is this amount including a paid-off house or without?”
That was how one Redditor launched a desperately relatable question about retirement planning (1). They noted utility, property tax and insurance costs of about $1,800 a month on top of their mortgage. They asked if selling the house once the kids leave or downsizing sooner would make sense. In short, they wanted to know whether conventional retirement math actually fits real life.
Across Reddit, seasoned savers and planners offered a wide range of perspectives. Rather than dismissing the question as alarmist, many highlighted that “what you need to retire is dependent on your spending habits and no one else’s,” a contributor wrote. “Some people can retire with half a million, some need $5M. Until you estimate what your monthly spend will be in retirement, you don’t actually have any idea how much you’ll need to retire.”
That gets at the heart of personal finance: figures are only useful if they connect with individual goals.
Public surveys show Canadians worry that retirement is expensive. According to a 2025 BMO survey (2), the average Canadian believes they need roughly $1.54 million to retire comfortably. That number has climbed over the past decade. In one report, Canadians over 45 felt they need about $1.02 million, compared with $447,000 in 2005 (3) — the BMO figure sits even higher. Yet those perceptions may not reflect everyone’s lifestyle or retirement income sources.
And real saving patterns lag those targets. Many Canadians have much less than the seven-figure nest egg they imagine, with average retirement savings hovering around for individuals $445,000 and $810,000 for couples (4).
That gap raises two important points for the Reddit thread respondent: most Canadians are still building their savings, while traditional rules of thumb like “you must have $2 million” often ignore pensions and government benefits.
Some Redditors pointed out how pensions change the math. One commenter explained: “Some people need exactly 0 dollars in the bank to retire … Two defined benefit pensions can = $100k-$120k; Full CPP for 2 people = $36,000; Full OAS = $16,000; For a total of 150,000 to 170,000 in guaranteed income per year and all index to inflation.” That calculation illustrates how guaranteed income from employer pensions and public plans can be a huge piece of the puzzle when you plan around realistic spending rather than headlines.
Story Continues
Government pensions alone are not enough for most Canadians, but they form a base. Average combined CPP and OAS can land around $19,200 per year, according to recent retirement data (5), which is far below typical pre-retirement incomes, meaning personal savings still matter.
Read more: Canadians spent $183B on dining and clothes in 2024. Prioritize these 4 critical investments instead and watch your net worth skyrocket
Housing emerged as a major theme in the Reddit conversation. One writer challenged the original poster by asking: “why downsize before your kids leave? There’s little reason to do this … your property gain will be tax free either way so might as well wait until they’re done school and then downsize.” That’s an important point: in Canada, capital gains from your primary residence are generally tax exempt, so there’s no tax penalty for selling later. Using home equity to fuel retirement contributions only makes sense once the timing and lifestyle fit. More importantly, the equity isn’t locked in until you sell, so early downsizing can reduce family space without a guarantee of better returns.
Another voice offered a different angle: “Will you be tempted to upsize again if a kid fails at launching and heads back home? … But yes, downsizing sooner will lower your costs of living and allow you to save a bit more.” Family dynamics are a factor, and many retirees are surprised by how long they still need extra bedrooms for visitors or grandchildren.
A practical option some planners suggest is leveraging home equity through a line of credit to invest. It isn’t for everyone. One Redditor raised the idea of using a home equity line of credit to invest in low-fee ETFs, but cautioned that “if you can’t keep your money in the investments even if they drop … I’d advise against this approach.” That shines a light on risk tolerance. Real estate isn’t the only tool; investing consistently in diversified markets can also grow wealth, especially with time on your side.
If you’re asking yourself the same question, start with clarity around your goals. How much you want to spend in retirement drives how much you need to save today. Consider a financial planner offering advice-only services that doesn’t tie recommendations to product sales. They can help you project income from CPP, OAS, employer pensions and personal savings.
Tools such as Canadian retirement calculators let you plug in age, savings, expected pension income and lifestyle costs so you can see whether your current path puts you on track. This kind of forward looking budgeting is more useful than comparing yourself to hypothetical $2 million figures.
No single number fits everyone. Retirement isn’t a debt you must pay off; it’s a transition you plan with real numbers. As one seasoned Redditor put it, “the answer to every personal finance question is ‘it depends’.” But with honest cost projections, careful planning and professional advice when needed, you’ll know exactly what “enough” means for you.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Reddit (1); BMO (2); Newswire (3); Statistics Canada (4); Made in CA (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.