Canadians believe they’ll need an average of $1.7 million to retire comfortably, up from $1.54 million in 2024, and more than a third say they’re unlikely to reach that goal, according to a new survey by BMO Financial Group.

It found retirement expectations vary significantly by region, with British Columbia reporting the highest average savings target at $2.2 million, followed by Ontario ($1.92 million) and Alberta ($1.66 million). Atlantic Canada reported the lowest average target at $928,000.

Read: 74% of Canadians say inflation is hurting retirement plans: survey

Despite rising savings targets, savings rates remain modest. Twenty-eight per cent of Canadians said they save less than five per cent of their income for retirement, while 38 per cent save between five and 10 per cent and 21 per cent save more than 10 per cent.

In monthly dollar terms, 10 per cent save less than $100, 23 per cent save between $100 and $499, 10 per cent save between $500 and $999 and 12 per cent contribute more than $1,000.

The survey also found 14 per cent of non-retired respondents said they don’t plan to stop working, including 27 per cent of working baby boomers, 20 per cent of generation X, 18 per cent of millennials and 15 per cent of generation Z.

Read: Fewer millennials, gen Z employees on track to save for retirement: survey

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