Canadians Say They Need Average Savings of Over $846K to be Financially Independent: Poll

Canadians believe they need an average of $846,000 saved up in order to be financially independent, according to a recent survey. fizkes/Shutterstock

Canadians believe they can achieve financial independence with average savings of $846,000, according to a recent poll, though almost half are worried about market volatility.

The annual RBC Financial Independence Poll, conducted by Ipsos, found that the amount of savings needed varied across the country.

Ontario residents say they need savings of $917,000, followed by Atlantic Canada at $851,000 and Quebec at $617,000. British Columbians anticipate savings of $878,000, while Alberta residents say they need $928,000.

Saskatchewan and Manitoba respondents say they need $959,000, the most of all regions.

The survey defines financial independence as “having sufficient financial resources to cover one’s living expenses without having to depend on active employment or work to earn money to maintain their current lifestyle.”

To achieve financial independence, 49 percent of Canadians say they have investments, while 51 percent say they have a financial plan. The survey found that 55 percent of Millennials (28–43) feel they will be able to achieve financial independence in their lifetime, followed by Boomers (60–78) at 53 percent, and Gen X (44–59) at 48 percent.

When asked about their current investments, among the age demographic, mutual funds were the most common at 24 percent. GICs/term deposits (21 percent) and stocks (20 percent) were a close tie, followed by pension plans (16 percent), exchange traded funds (10 percent), and cryptocurrencies (5 percent).

Millennials were found to have the least investments at 46 percent, though not far from Gen X at 49 percent. Boomers invested the most at 52 percent.

Nearly half of Canadians agreed that they are worried about the performance of their market-tied investments, with Millennials the most concerned at 54 percent, Gen X at 46 percent, and Boomers at 43 percent.

According to a survey conducted by CPP Investments last November, nearly six in 10 Canadians feel financial stress daily.

Young people are particularly stressed about their finances, the survey found, with Canadians aged 18 to 24 saying they feel “a lot of anxiety about making the wrong decisions with my money.”

“This anxiety decreases with age, with only one-third of respondents aged 65 and older expressing the same concern,” the survey said.

The RBC Financial Independence Poll was conducted in October 2024 through online interviews with 2,000 Canadians aged 18 and over. Ipsos published the findings on March 19.