Older couple running
Much of retirement planning is focused on the so-called “magic number” — how much you need to have saved in order to live comfortably and confidently without employment income.
Today, most Canadians believe that magic number is $1.54 million, according to a 2025 Bank of Montreal survey (1).
But the complexity of your golden years go way beyond a single number. This number tells you nothing about how your personal finances compare to your peers and whether you’re likely to feel comfortable and confident in retirement.
Even if you don’t have a $1.54-million nest egg, here are seven signs you’re doing better than most retirees and can afford to relax.
While you can’t anticipate all your monthly expenses, you will need at least enough guaranteed retirement income — including pensions, personal savings, Old Age Security (OAS) and the Canada Pension Plan (CPP) — to pay for food, shelter and utilities.
As of 2023, Statistics Canada found that couples over the age of 65 spend an average of $78,499 per year, which breaks down to about $6,541 per month (2).
So if your guaranteed retirement income delivers over $6,500 a month at least, you’re outperforming most other retirees.
Unfortunately, carrying high-interest consumer debt into retirement is becoming more common. According to StatCan, 37% of senior families have consumer debt as of 2016 — the most recent data on hand (3).
Managing consumer debt is tough on a limited fixed income. A sudden spike in interest rates could derail your retirement plan.
Meanwhile, mortgage debt continues to put a strain on the finances of older adults as well. A 2025 survey from Royal LePage found that 29% of people planning to retire in 2025 or 2026 say they will continue to have a mortgage on their primary residence in retirement (4).
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
Many older Canadians are forced to rely on CPP/OAS as their sole source of income. Data from 2015 shows that the OAS program reduced the percentage of seniors below Statistics Canada’s Low Income Cut-Off (LICO) to just 4%. Without the program, the rate would have been 23% (5).
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Equally concerning is the fact that for low income seniors, CPP/OAS benefits accounted for 67% of their yearly income.
If you have multiple sources of income beyond CPP/OAS — such as dividends, income from rental properties or pensions — you’re in a much better financial position.
As of 2024, 28% of older adults in Canada reported that rising prices were “greatly affecting their ability to meet day-to-day expenses” (6). However, if your spending is below your income, you’re doing something rare: accumulating capital in retirement.
This excess cash can really bolster your personal finances in your golden years.
If you’re not just saving money in retirement but proactively investing it, you’re benefiting from the market’s growth engine.
As your nest egg continues to expand in your senior years, you’re much less likely than your peers to outlive your savings.
According to a 2025 survey from the Healthcare of Ontario Pension Plan, 49% of Canadians were unable to set aside any money the previous year for retirement (7). If you’ve been actively saving and investing in these accounts, and started at a younger age, you may be doing better than many other Canadians.
Luckily, 71% of Canadians over the age of 65 have an up-to-date will, according to a 2023 survey from Angus Reid. However, that number drops to 37% when all ages are included (8).
So if you have a plan for what happens to your assets and income sources after you’re gone, you’re putting yourself and your loved ones in a better position than most. One crucial thing to do if you’re behind on any of these items is to reach out to a financial advisor to create a retirement plan.
Such a plan can help you systematically pay off debt, lower your spending or boost your income from multiple sources over time.
It’s never too late to start making minor adjustments for a better retirement.
— with files from Rebecca Holland
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Bank of Montreal (1); Statistics Canada (2), (3), (5), (6); Royal LePage (4); Healthcare of Ontario Pension Plan (7); Angus Reid (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.