Source: Getty Images <\/p>\n
Written by Kay Ng<\/a> at The Motley Fool Canada<\/p>\n If you\u2019re 45 and starting to seriously think about retirement, you\u2019re asking the right question \u2014 but you may not like the answer. How much do you need right now to retire comfortably at 65? The truth is, there\u2019s no single magic number.<\/p>\n Still, that doesn\u2019t mean you\u2019re flying blind. With some realistic assumptions and smart investing, you can get surprisingly close to a workable target.<\/p>\n Many financial planners suggest retirees aim to replace about 70% of their pre-retirement income. But that\u2019s just a starting point. Your actual number depends on lifestyle choices, health, where you plan to live, and how effectively you invest over the next 20 years.<\/p>\n The biggest variable in retirement planning is lifestyle. A retirement filled with frequent travel, dining out, and supporting adult children will require far more savings than a simpler, home-centred lifestyle. Even small differences \u2014 like owning your home outright versus renting \u2014 can shift the numbers dramatically.<\/p>\n Health is another often underestimated factor. While Canada\u2019s healthcare system covers many essentials, out-of-pocket costs for prescriptions, dental care, and long-term care can add up quickly. Planning for a margin of safety here is wise.<\/p>\n Then there\u2019s location. Retiring in Toronto or Vancouver typically requires a larger nest egg due to higher housing and everyday living costs. Downsizing or relocating to a lower-cost province can materially reduce the income you\u2019ll need in retirement.<\/p>\n According to Statistics Canada, the median employment income for Canadians aged 45-54 was $64,900 in 2023. Using the 70% rule, that translates to about $45,430 per year in retirement income.<\/p>\n Now factor in government benefits. The Canada Pension Plan (CPP) and Old Age Security (OAS) will likely cover a meaningful portion of that income, depending on your contribution history and when you start benefits. That means your personal savings \u2014 Registered Retirement Savings Plans, Tax-Free Savings Accounts, and non-registered investments \u2014 don\u2019t need to do all the heavy lifting, but they still need to be substantial.<\/p>\n The Government of Canada\u2019s Canadian Retirement Income Calculator is a useful tool for pulling these pieces together. It allows you to model different contribution levels, retirement ages, and retirement savings. Most people quickly discover that compounding over the next 20 years will matter far more than trying to \u201ccatch up\u201d later.<\/p>\n At 45, one of the most powerful moves you can still make is boosting your income \u2014 especially income that doesn\u2019t rely entirely on your time. That\u2019s where dividend investing<\/a> can shine.<\/p>\n A diversified portfolio<\/a> of high-quality Canadian dividend stocks can provide growing income and inflation protection over time. One prime example is Canadian Natural Resources (TSX:CNQ<\/a>). The company has navigated multiple energy cycles while maintaining a roughly\u00a025-year streak of dividend increases.<\/p>\n At around $46 per share, CNQ offers a dividend yield of approximately 5.1%. Its trailing-12-month payout ratios \u2014 about 58% of free cash flow and 71% of net income \u2014 suggest the dividend remains well supported. Importantly, its dividend growth rates over the past three, five, and 10 years (14.9%, 22.6%, and 17.7%) highlight how growing income today can meaningfully support retirement tomorrow.<\/p>\n There\u2019s no universal number for how much a 45-year-old Canadian needs to retire at 65, but direction matters more than precision. Understanding your lifestyle goals, accounting for the Canada Pension Plan and Old Age Security, and investing consistently \u2014 particularly in income-generating assets \u2014 can put retirement well within reach. The earlier you align your plan with reality, the more control you\u2019ll have over your future.<\/p>\n The post Here\u2019s How Much 45-Year-Old Canadians Need Now to Retire at 65<\/a> appeared first on The Motley Fool Canada<\/a>.<\/p>\n Before you buy stock in Canadian Natural Resources, consider this:<\/p>\n The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 5 best stocks for investors to buy now\u2026 and Canadian Natural Resources wasn\u2019t one of them. The 5 stocks that made the cut could potentially produce monster returns in the coming years.<\/p>\n Consider MercadoLibre, which we first recommended on January 8, 2014 \u2026 if you invested $1,000 in the \u201ceBay of Latin America\u201d at the time of our recommendation, you\u2019d have $20,568.17!*<\/p>\n Now, it\u2019s worth noting Stock Advisor Canada\u2019s total average return is 99%* \u2013 a market-crushing outperformance compared to 77%* for the S&P\/TSX Composite Index. Don\u2019t miss out on our top 5 list, available when you join Stock Advisor Canada.<\/p>\n See the 5 Stocks<\/a><\/p>\n * Returns as of January 5th, 2026<\/p>\n More reading<\/p>\n Fool contributor Kay Ng<\/a> has positions in Canadian Natural Resources. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy<\/a>.<\/p>\n 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Getty Images Written by Kay Ng at The Motley Fool Canada If you\u2019re 45 and starting to…\n","protected":false},"author":2,"featured_media":420964,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,5437,71928,19421,133,18182,51407,131,132,8496,7712,50],"class_list":["post-420963","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-canada-pension-plan","tag-canadian-natural-resources","tag-employment-income","tag-finance","tag-fool-canada","tag-government-of-canada","tag-personal-finance","tag-personalfinance","tag-retirement-income","tag-retirement-planning","tag-statistics-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/420963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=420963"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/420963\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/420964"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=420963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=420963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=420963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}