How Much Money You Need To Retire in Canada vs the US
Written by
Emily Fowler
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
An affordable, stress-free retirement is the dream for most people. But with costs varying wildly depending on location, lifestyle and access to essential services like healthcare, it’s not always easy to know how much money is needed.
According to the 2024 Charles Schwab 401(k) Participant Study, Americans believe they need $1.8 million to retire comfortably. Meanwhile, BMO’s 2025 Retirement Survey found that the number Canadians expect to need is CA$1.54 million (around $1.07 million).
People are worried about affording retirement in both countries. In Canada, inflation and living costs make it harder to save, with more than three-quarters of Canadians worrying about running out of money, and 63% saying inflation is holding them back. In the U.S., healthcare is a big reason for the higher savings target, with Medicare often falling short.
Here’s how those factors compare across the two countries.
Also, find out how the average retirement age compares in the U.S. vs. Canada.
Housing Costs
While some people are lucky enough to reach retirement with a fully paid mortgage, housing is often one of the biggest expenses. According to Wowa.ca, the average home price in Canada is CA$713,700 (around $498,804), though there will be significant differences between major cities like Toronto and Vancouver and smaller, less expensive areas.
In the U.S., the average home value is $357,138, according to Zillow, but, again, costs will vary depending on the location. States with lower taxes, like Pennsylvania or Iowa, can be more affordable, while others drive up expenses.
In terms of the rental markets in both countries, Zillow places the average monthly rent in the U.S. at $2,085, while in Canada it’s CA$1,799 (around $1,256), according to Apartments.com.
Healthcare Costs
U.S. Medicare covers some costs, but in general, insurance premiums, deductibles and co-pays can be high. Supplemental insurance is common, and long-term care costs in retirement are often a major drain on resources. The average annual health insurance premium in the U.S. ranges from $7,000 for the Affordable Care Act (ACA) marketplace, per Forbes, to $8,951 for employer-sponsored health insurance plans, per KFF.
Canada’s publicly funded healthcare system is very different to the U.S., with most basic medical expenses covered, and the rest, including some dental care, vision and podiatry, requiring private health insurance. As a stark comparison to the U.S., the average annual insurance premium in Canada for a 35-year-old single male, according to PolicyAdvisor, is only just over CA$700 (around $488 USD) per year.
Everyday Living Expenses
Food, transportation and other essentials vary between the two countries. According to LivingCost.org, it’s 21% cheaper to live in Canada, where the average cost of living of one person is $1,980 compared to $2,498 in the U.S.
Ultimately, the amount needed for retirement in either country depends on factors like lifestyle and health, though Canada’s healthcare system offers a financial advantage. Regardless of location, inflation is a major challenge, and many retirees are adjusting their plans — whether by delaying retirement, cutting expenses or working part-time.
More From GOBankingRates
