B.C. residents are setting their sights high when it comes to retirement savings, with a staggering $2.2 million as their target, the highest in the country, according to BMO's Annual Retirement Survey. This figure is a significant jump from the second-highest retirement goal of $1.9 million in Ontario, and even more striking when compared to the national average of $1.7 million. But what does this mean for B.C. residents, and why are they setting such ambitious goals? In my opinion, this highlights a deep-seated fear of financial insecurity and a desire for a comfortable retirement, especially in a province known for its high cost of living.
The survey, conducted by Pollara Strategic Insights, surveyed 1,500 adult Canadians between November 4 and 10, 2025, revealing a growing uncertainty about the future. Rising costs and economic concerns are challenging long-term financial planning goals, and B.C. residents are feeling the pressure. With 67% of B.C. residents looking to cut back on spending this year, it's clear that the cost of living is a significant burden. Statistics Canada data from 2021 confirms that B.C. is one of Canada's most expensive provinces, which may be contributing to the high retirement savings goal.
However, the question remains: how much are people actually saving for retirement? BMO's survey found that 28% of Canadians save less than 5% of their income, 38% save between 5% and 10%, and 21% save more than 10%. In terms of monthly savings, 10% save less than $100, 23% save between $100 and $499, 10% save between $500 and $999, and 12% save over $1,000. This data suggests that while B.C. residents may have high retirement goals, their current savings habits may not be aligning with their ambitions.
One expert, Margaret Leong, a senior investment counsellor and portfolio manager with BMO Private Wealth, advises that deciding how much to save for retirement is a personal choice, but thinking in percentage terms can help with long-term planning. She suggests that those in their 20s contributing 10% a month to an RRSP can be a great start, taking advantage of compound growth and building a more secure retirement. However, the survey also found that 36% of Canadians think they are unlikely to reach their retirement goals, which is a concerning trend.
The survey also revealed that 14% of Canadians don't plan to retire, with 27% of baby boomers, 20% of Gen X, 18% of millennials, and 15% of Gen Z not planning to stop working. This shift towards a more flexible retirement lifestyle, including part-time work, freelancing, or passion projects, is a significant cultural change. Catherine Laurin, a senior portfolio manager with BMO Nesbitt Burns, notes that these choices need to be accounted for in retirement plans, including the impact on taxes and government benefits.
In conclusion, B.C. residents' sky-high retirement savings goal is a reflection of their desire for financial security and a comfortable retirement, especially in a high-cost province. However, the current savings habits of Canadians may not be aligning with these ambitions, and the rising costs and economic concerns may be contributing to the growing uncertainty about the future. It's a complex issue that requires careful planning and a flexible approach to retirement, one that accounts for changing work patterns and financial priorities.
