Calgary 
Millennials estimate they’ll need around $2.1 million for a comfortable retirement, according to the latest retirement survey conducted by BMO.
BMO says this figure is the highest across all adult generations, surpassing the national average of approximately $1.7 million.
Interestingly, the survey also highlights that the perceived necessary retirement savings amount remains consistent for the second year in a row for Canadians at about $1.7 million.
The breakdown of estimated retirement savings by age groups reveals varied expectations: Gen Z (ages 18 to 27) anticipates needing $1.6 million, Gen X (ages 45 to 60) and Boomers (ages 61 to 70) think $1.3 million will suffice, and those over 71 years believe $1.2 million is enough.
| Demographic Age Groups | Estimated Savings Needed to Retire, |
| National (All age groups) | $1.7M |
| Gen Z (Ages 18 to 27) | $1.6M |
| Millennial (Ages 28 to 44) | $2.1M |
| Gen x (Ages 45 to 60) | $1.3M |
| Boomers (Ages 61 to 70) | $1.3M |
| Age 71 + | $1.2M |
BMO survey finds that despite the current economic challenges, including higher interest rates and inflation, 62% of Canadians are committed to contributing to their Registered Retirement Savings Plan (RRSP) in 2023, with the average contribution set to increase from $5,753 in 2022 to $6,512. However, the average RRSP account value experienced a 28% decrease to $113,070 in 2023 from the previous year ($144,613), aligning with historical norms but noting a significant dip from the peak seen during the COVID-19 pandemic.
Economic conditions are adversely affecting 63% of Canadians’ retirement saving efforts according to the survey, with 37% reducing their retirement contributions. Among Boomers, 44% plan to extend their working years to compensate for saving shortfalls, and 38% of Gen Z respondents are delaying retirement savings altogether.
The survey also sheds light on a gender disparity in retirement savings expectations, with men estimating a need for $2.0 million, whereas women project $1.3 million. Yet, confidence in meeting retirement goals varies less significantly, with 67% of men and 56% of women optimistic about achieving their retirement objectives.
Retirement age expectations are also evolving, with the average planned retirement age at 62, while the ideal retirement age is considered to be 55, showing a desire for early retirement, especially among younger generations.
The study was carried out by Pollara Strategic Insights from November 3rd to 8th, 2023, involved 1,510 adult Canadians, offering insights with a margin of error of ± 2.5%, 19 times out of 20.