For many Canadians, especially in immigrant and close-knit communities, it’s still common to believe that adult children will “take care of” their parents in retirement. But the reality is: your kids are not your retirement plan—they’re human beings with their own lives, dreams, and financial pressures. Relying on them may not just be unfair—it could strain your relationship and their future.
If you want to retire with dignity, independence, and freedom, the best thing you can do—for yourself and your children—is to plan ahead. The good news? You don’t need millions. For an average couple in Canada, a retirement plan that works starts with just one number:
$460,000
That’s right. A couple with a paid-off home, retiring at age 60, can enjoy a comfortable lifestyle until age 90 by building an investment portfolio of about $460,000—supplemented by government benefits like CPP and OAS.
Let’s break down how this works.
A Paid-Off Home Changes Everything
First, let’s talk housing. If your mortgage is paid off by the time you retire, you’re already ahead of the game. Housing is often the single biggest expense in retirement. Eliminating mortgage or rent payments can reduce your annual living costs by $20,000 or more. That’s why paying off your home should be part of your retirement plan—not separate from it.
Home ownership gives you stability, flexibility, and control. It also means your savings don’t need to stretch as far, making retirement more affordable and attainable.
What Does a Comfortable Retirement Cost?
A couple with no rent or mortgage can live well on about $50,000 to $60,000 per year in today’s dollars. That amount covers basic living expenses, transportation, healthcare, travel, and occasional indulgences.
Of that, government benefits will typically provide a solid base. The average couple receives approximately $35,000 per year combined from the Canada Pension Plan (CPP) and Old Age Security (OAS), starting at age 65.
But if you retire at 60—or simply want to enjoy more flexibility—you’ll need to cover the difference yourself.
Where the $460,000 Comes From
Let’s say you want to retire at age 60 and plan for your money to last until age 90. You’ll need to draw about $25,000 per year from your savings to supplement CPP and OAS and hit that $60,000 income target.
With a modest investment return of 3.5% annually, you’ll need a retirement portfolio of roughly $460,000 to make that work.
This amount isn’t about luxury. It’s about freedom—freedom from debt, freedom from financial anxiety, and freedom from becoming a burden to your kids.
How Much Should You Save Each Year?
If you start saving at age 35, you’ll have 25 years to build your retirement fund. At a 5% annual return during your working years, you and your spouse would need to save around $8,000 to $9,000 per year—or about $350 to $400 per person, per month.
The earlier you start, the more time compound interest has to work in your favor. If you’re starting later, the savings target will be higher—but the principle is the same: consistency and strategy beat procrastination every time.
Why Bison CPA LLP Should Be Part of Your Plan
At Bison CPA LLP, we understand that retirement isn’t just a financial decision—it’s a life decision. We specialize in helping Canadians:
- Create realistic, tax-efficient retirement savings plans
- Choose the right mix of RRSPs, TFSAs, FHSAs, and non-registered investments
- Understand when and how to take CPP and OAS to maximize benefits
- Build retirement strategies that reflect their lifestyle, risk tolerance, and long-term goals
We also recognize that for many of our clients, faith-based financial planning is just as important as tax efficiency or investment growth.
Shariah-Compliant Investment Options — Aligning Wealth with Values
For our Muslim clients, we offer Shariah-compliant financial planning that respects and upholds Islamic values.
What does Shariah-compliant investing mean?
Shariah-compliant investments follow Islamic principles, which prohibit:
- Earning interest (riba)
- Investing in businesses related to alcohol, gambling, pork, or conventional financial services
- Excessive uncertainty (gharar) or speculation
Instead, investments are screened for ethical compliance and often focus on real, asset-backed businesses. Shariah-compliant portfolios typically use Halal ETFs, Islamic equity screens, and profit-sharing structures (like sukuk instead of bonds) to build wealth responsibly.
At Bison CPA LLP, we can help you choose accounts and assets that not only grow your retirement savings, but also adhere to your faith and values—whether it’s through a Halal RRSP, TFSA, RESP, or corporate investment structure.
We believe you shouldn’t have to compromise your principles to build a secure financial future.
A Smart Retirement Plan Starts Today
Retiring comfortably in Canada doesn’t require millions of dollars or extreme frugality—it requires a smart, consistent plan. If you’re a couple with a long-term view, a goal of paying off your mortgage, and the discipline to save $8,000 to $9,000 per year, you’re well on your way.
At Bison CPA LLP, we’ll work with you to create a strategy that not only builds wealth, but also protects it—while aligning with your ethical, cultural, or religious priorities.
Let’s build your future together. Schedule a consultation with Bison CPA LLP and start your path to a stress-free, mortgage-free, and values-based retirement.
Disclaimer:
This article is based on average Canadian household data, government benefit figures, and conservative investment assumptions. Your personal financial needs and retirement goals may differ significantly. Always consult a licensed financial advisor or tax professional for personalized advice.