How much do you need to retire?

How Much Do You Really Need to Retire? Let’s Talk Numbers

Tired of hearing "it depends"? So am I.

Here’s a straight answer: $4,500 per month for a comfortable, no-frills retirement for two adults.

Let’s break it down based on average needs. Most adults need about 2,400 calories a day, but beyond food, we also need shelter, healthcare, transportation, and a little fun. Here’s a simple monthly budget for two people:

• Rent: $2,000
• Utilities: $500
• Groceries: $800
• Dining Out: $400
• Healthcare: $400
• Transportation: $400

Total: $4,500/month

This covers the basics. But retirement isn’t just about surviving—it's about living with purpose. The truth is, life gets boring quickly if you don’t have something meaningful to do.

The good news? You can stay active without spending much. Volunteering, social activities, or hobbies like blogging, cooking, or even starting a YouTube channel can keep you engaged—and possibly earn you a little income on the side. That extra cash could lower your monthly draw from savings and add more joy to your life.

Now, let’s talk income. If you’re eligible for Canadian benefits like CPP (average $900) and OAS ($700), that’s $1,600/month already covered. That leaves a gap of $2,900/month, or $1,450 per person.

To generate that using a 4% safe withdrawal rate, you’d need a nest egg of about $240,000 per person. But if you live modestly or have a paid-off house, TFSA, or a dividend portfolio, the numbers work out even better.

COVID taught us a lot—mainly, that our real needs are simple: food, clothing, shelter, healthcare, and education. And in Canada, most of these are still affordable—especially outside expensive cities like Toronto and Vancouver. Places in the Prairies or Atlantic Canada offer a great quality of life at a much lower cost.

So how much do you really need to retire?

Less than you think.