Is $1 million enough to retire in Canada?

For many Canadians, yes. Because CPP and OAS provide guaranteed, inflation-indexed income, a $1M portfolio drawn at 4% (about $40,000/year) plus government benefits often supports a comfortable middle-class retirement — but it depends on your spending, province and when you start CPP.

What is a safe withdrawal rate?

A safe withdrawal rate is the percentage of your portfolio you can take each year with low risk of running out. The classic figure is 4%, but 3–3.5% is more conservative for early retirees with a long horizon.

How much do you need to retire in Canada?

The honest answer is: it depends on how much you spend, not on a headline number. A retiree spending $40,000 a year needs a very different portfolio than one spending $90,000 — and in Canada, CPP and OAS do a lot of the heavy lifting.

Start with spending, not savings

Your retirement number is driven by your annual after-tax spending. Track what you actually spend now, then adjust for retirement: the mortgage may be gone, commuting and work costs disappear, but travel and healthcare often rise.

Subtract guaranteed income

This is where Canada is different from the U.S. examples you'll read online. CPP and OAS are guaranteed, inflation-indexed income for life. A couple who both qualify for solid CPP plus OAS might receive $40,000–$50,000 a year between them — income your portfolio doesn't have to provide.

So the real question is: how big is the gap between your spending and your government benefits? Your portfolio only has to fill that gap.

Apply a safe withdrawal rate

Once you know the annual gap, divide by a safe withdrawal rate to get the portfolio you need:

4% rule: gap × 25
More conservative (3.5%): gap × ~29

If your spending is $60,000, benefits cover $35,000, and the $25,000 gap is filled at 4%, you need roughly $625,000 — not the scary million-dollar figures you often see.

Don't forget tax

RRSP and RRIF withdrawals are taxable; TFSA withdrawals aren't. Two people with the same portfolio can have very different after-tax incomes depending on where their money sits and which province they live in. That's exactly what a full simulation is for.

The fastest way to find your own number is to model it — enter your spending, savings and benefits, and see the plan year by year.