Retirement: because even the defence rests, eventually. During our working lives, retirement can feel like a vague, faraway destination. We might have a date in mind, maybe even a dollar figure that will make us feel “retirement ready.” But what happens on the other side of that dividing line? How much income will we need, where will it come from, and how long will it have to last?
Here are three facts that can bring your financial future into sharper focus.
1. Longer lives can mean longer retirements
Some retirements today last longer than the careers that fund them. In 1981, Canadians who reached age 65 could expect to live another 17 years, on average.1 Today, retirements (and retirees) last so much longer: a 65-year-old Canadian can now expect to live another 20 years or so.2
Put simply, your retirement savings may need to stretch further, and last longer, than your grandparents’ ever did.
Planning is an act of optimism—and we recommend leaning toward optimism when you estimate your life expectancy. Plan for a 95-year lifespan. If your goal is to retire at 70, plan for at least 25 years of savings.
RELATED: Live long and prosper: 90 is the new 80. Are you saving enough?
2. It’s not all on you
Good news: you may have more retirement income coming your way than you think.
If you've worked in Canada, you've likely been contributing to the Canada Pension Plan (CPP) throughout your career. In 2026, new retirees who start collecting CPP at age 65 receive an average of about $860 per month. Your own benefit will depend on your earnings, contributions, and when you choose to start collecting.
And then there's Old Age Security (OAS), another potential source of monthly retirement income. Unlike CPP, OAS doesn't depend on your employment history or contributions. It's based on your age (you can start claiming as early as 65 or as late as 70), how long you’ve lived in Canada, and the amount of income you earn alongside your OAS payments. Higher-income retirees may have some or all of their benefits clawed back.
Neither program will fund your entire retirement (they’re not meant to), but together they can give you a foundation. Curious what yours might look like? Check the Government of Canada's CPP payment information and OAS estimator.
3. But a lot of it is
One commonly used rule of thumb suggests withdrawing 4% of your savings in your first year of retirement, then giving yourself a little raise in subsequent years to account for rising costs of living. Working backwards, that means you'd need roughly $2 million if you want to launch year one of your retirement with an $80,000 withdrawal before taxes. So, where will that $2 million come from?
Employer pensions help, but not every lawyer has one. Plan to make up the balance by contributing early and often to tax-efficient savings vehicles like registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs).
RELATED: RRSP, TFSA, or FHSA: Which one’s right for you?
But here’s the thing about rules (and thumbs): they’re personal
There are no one-size-fits-all retirement rules because there are no one-size-fits-all retirements. The real question isn’t whether you’ll need $2 million. It’s how much you’ll need to live the retired life you want. A certified financial planner can help you find that number and build a plan to make it happen.
Book a pro bono financial planning meeting now
Sources:
1. Statistics Canada, “Life expectancy at birth and at age 65, by sex, Canada, select years,” Table 2, 2010.
2. Statistics Canada, “Older adults and population aging statistics,” life expectancy at age 65, 2022–2024.
