"Am I on track?" is the most common retirement question — and one of the hardest to answer definitively, because the right number depends heavily on your income, lifestyle, and what government benefits you'll receive. But the benchmarks below give you a practical starting point.
The Salary Multiple Benchmark
Fidelity's widely-referenced framework uses multiples of your annual salary as retirement savings targets. These assume you maintain a similar lifestyle in retirement and retire at 65:
| Age | Savings Target | Example: $75K Salary | Example: $120K Salary |
|---|---|---|---|
| 30 | 1× salary | $75,000 | $120,000 |
| 35 | 2× salary | $150,000 | $240,000 |
| 40 | 3× salary | $225,000 | $360,000 |
| 45 | 4× salary | $300,000 | $480,000 |
| 50 | 6× salary | $450,000 | $720,000 |
| 55 | 7× salary | $525,000 | $840,000 |
| 60 | 8× salary | $600,000 | $960,000 |
| 65 | 10× salary | $750,000 | $1,200,000 |
If you started later or saved less, the target itself doesn't change — but you may need to save a higher percentage going forward, delay retirement by a few years, or adjust your lifestyle expectations. All three levers are valid and commonly used.
The 25× Annual Expenses Approach (More Precise)
The salary multiple is a rough guide. A more precise approach is the 25× annual expenses rule (derived from the 4% safe withdrawal rate): multiply your expected annual retirement spending by 25. If you plan to spend $55,000/year in retirement, you need $1,375,000 in investable assets.
This approach rewards those with modest lifestyles — you need significantly less if you're content spending $40K/year vs $80K/year.
How Government Benefits Reduce Your Target
Many people forget that CPP, OAS, and Social Security are effectively a retirement account — one that pays a guaranteed, inflation-indexed income for life. This income reduces how much your portfolio needs to generate.
| Country | Average Annual Benefit | Equivalent Portfolio Value at 4% |
|---|---|---|
| 🇨🇦 Average CPP (age 65) | $9,732/year ($811/month) | $243,300 |
| 🇨🇦 Average OAS (age 65) | $8,724/year ($727/month) | $218,100 |
| 🇨🇦 CPP + OAS combined | $18,456/year | $461,400 equivalent |
| 🇺🇸 Average Social Security | $22,500/year ($1,875/month) | $562,500 |
A Canadian planning to spend $60,000/year in retirement who receives average CPP and OAS only needs their portfolio to cover $41,544/year — requiring $1,038,600 instead of $1,500,000. That's nearly $462,000 less you need to personally save.
The 15% Savings Rate Rule
If you're in your 20s or 30s and wondering how much to save rather than whether you're on track, the standard guidance is 15% of gross income per year, including any employer match. On a $70,000 salary, that's $10,500/year — or $875/month.
If you have an employer who matches 4%, you only need to contribute 11% yourself. The match is free money that counts toward your 15%.
What If You're Behind?
Being behind the benchmarks at 40 or 50 is common — life happens. The good news: the levers available to you are more powerful than most people think.
- Increase savings rate aggressively: Going from 10% to 20% of income for 10 years has an enormous impact. Every dollar saved at 50 has 15 years to grow before a 65 retirement.
- Work 2–3 years longer: Delaying retirement from 65 to 67 does three things simultaneously — more years of contributions, fewer years of withdrawals, and higher CPP/OAS benefits.
- Delay CPP to 70: CPP increases 8.4% for every year you delay past 65, up to a 42% boost at age 70. This permanently raises your inflation-indexed income floor.
- Reduce expected retirement spending: A paid-off mortgage, fewer commuting costs, and lower work-related expenses often mean retirement spending is 70–80% of pre-retirement income — not 100%.
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