Knowing what the average Canadian retiree earns puts your own retirement plan in context. Are you ahead or behind? Is your retirement income sustainable by Canadian standards? Here is what Statistics Canada data tells us.
Average Retirement Income by Age Group (2026)
Based on Statistics Canada data and CRA tax filing data (most recent available, adjusted for 2026):
| Age Group | Median Individual Income | Median Couple Income |
|---|---|---|
| 60–64 | ~$42,000 | ~$78,000 |
| 65–69 | ~$38,000 | ~$72,000 |
| 70–74 | ~$36,000 | ~$68,000 |
| 75–79 | ~$34,000 | ~$63,000 |
| 80+ | ~$31,000 | ~$55,000 |
Why income drops with age: Older cohorts had lower lifetime earnings, fewer years of RRSP contributions, and less access to employer pensions. RRIF balances also deplete over time. CPP and OAS remain relatively stable but represent a larger share of income as savings diminish.
Sources of Retirement Income
The Five Pillars of Canadian Retirement Income
| Source | % of Retirees Receiving | Average Annual Amount |
|---|---|---|
| CPP/QPP | ~93% | ~$9,120 |
| OAS | ~96% | ~$8,000–$8,700 |
| GIS | ~33% | ~$5,000–$8,000 |
| Employer pension (DB or DC) | ~38% | ~$20,000–$30,000 |
| RRSP/RRIF withdrawals | ~55% | ~$12,000–$18,000 |
| TFSA withdrawals | ~45% | Not tracked (tax-free) |
| Investment income | ~40% | ~$8,000–$15,000 |
| Employment income | ~20% | ~$15,000–$25,000 |
| Rental income | ~10% | ~$15,000–$25,000 |
Sources: Statistics Canada Survey of Financial Security, CRA T1 aggregate data, ESDC CPP/OAS statistics. Figures are approximate and represent medians/averages rounded for readability.
The Pension Gap: DB vs No Pension
The largest dividing line in Canadian retirement income is access to an employer defined benefit (DB) pension:
| Retiree Type | Typical Annual Income | Income Security |
|---|---|---|
| Public sector DB pension + CPP + OAS | $65,000–$95,000 | Very high (guaranteed) |
| Private sector DB pension + CPP + OAS | $50,000–$75,000 | High |
| Strong RRSP saver, no DB pension | $45,000–$70,000 | Moderate (market dependent) |
| CPP + OAS + modest RRSP | $30,000–$45,000 | Moderate |
| CPP + OAS only (minimal savings) | $17,000–$26,000 | Low |
| OAS + GIS (no CPP, low income) | $21,000–$26,000 | Low (but guaranteed) |
Average Retirement Income by Province
Provincial differences reflect career earnings levels, housing costs, public sector employment, and population age structures:
| Province | Median Senior Individual Income | Notes |
|---|---|---|
| Alberta | ~$40,000 | Higher lifetime earnings, strong oil & gas pensions |
| BC | ~$38,000 | High housing wealth, but higher costs |
| Ontario | ~$37,000 | Strong public sector pensions; cost of living variation |
| Saskatchewan | ~$35,000 | Agricultural income; public sector workers |
| Quebec | ~$34,000 | Strong QPP (equivalent of CPP); lower private pensions |
| Manitoba | ~$33,000 | Similar to national average |
| Nova Scotia | ~$30,000 | Lower lifetime earnings; heavier GIS reliance |
| New Brunswick | ~$29,000 | |
| PEI | ~$28,000 | |
| Newfoundland | ~$30,000 | Offshore oil pensions offset lower median earnings |
Quebec uses QPP (Quebec Pension Plan) instead of CPP — the benefits are structured similarly but managed separately by Retraite Québec.
What the Average Retiree Actually Gets From Each Source
CPP/QPP
The average CPP at age 65 is approximately $760/month — 56% of the maximum. Reasons most people don’t get the maximum:
- Gaps due to caregiving, illness, unemployment, or self-employment
- Low-earnings years averaged into the calculation
- Workers who contributed for fewer than 39+ years at maximum insurable earnings
You can boost your CPP by:
- Working longer (contributing more high-earnings years)
- Using the child-rearing dropout provision (removes years of low CPP earnings due to caregiving)
- Deferring to 70 (+42%)
OAS
Most Canadians receive close to the full OAS because Canada has high rates of long-term residency. Partial OAS mostly affects recent immigrants who arrived as adults.
The maximum OAS at 65 is approximately $727/month in 2026. Those 75+ automatically receive $800/month (10% top-up legislated in 2022).
GIS
Approximately one-third of OAS recipients also receive GIS — indicating about a third of Canadian seniors have limited income beyond government benefits. GIS is more prevalent among:
- Women (due to caregiving gaps in CPP, lower lifetime earnings)
- Recent immigrants (partial OAS, no full CPP)
- Self-employed with low declared incomes
- Those without employer pensions
Retirement Income vs. Pre-Retirement Income: How Much Do Retirees Replace?
Financial planning targets 70% income replacement. Statistics Canada research suggests:
| Income Percentile | Typical Replacement Rate | Why |
|---|---|---|
| Bottom 20% (under ~$30K) | 90–110% | CPP + GIS + OAS often exceeds prior income |
| Middle 40% ($40K–$75K) | 65–75% | Target met if savings are adequate |
| Upper 20% ($75K–$120K) | 50–65% | High earners often undershoot — CPP caps at $16K |
| Top 10% ($120K+) | 30–50% | Government benefits are small relative to prior income |
Key insight: CPP and OAS are progressive in effect — they replace a much higher percentage of a low-income worker’s pre-retirement earnings than a high earner’s. High earners must accumulate more savings to maintain their lifestyle.
What Average Retirees Spend
Statistics Canada’s Survey of Household Spending (senior households):
| Category | % of Budget | Average Annual Spending |
|---|---|---|
| Housing (rent/mortgage/property tax) | 28% | ~$13,000–$17,000 |
| Food | 15% | ~$7,000–$9,000 |
| Transportation | 12% | ~$5,500–$7,000 |
| Healthcare (drugs, dental, supplements) | 8% | ~$3,500–$5,000 |
| Recreation/travel | 9% | ~$4,000–$6,000 |
| Clothing | 4% | ~$1,500–$2,500 |
| Other | 24% | Varies |
| Total | 100% | ~$48,000–$55,000 |
Single seniors spend approximately $30,000–$38,000, with housing and food representing the largest categories.
How Do You Compare?
Use these benchmarks to calibrate your retirement plan:
| Metric | National Median | “Comfortable” Target |
|---|---|---|
| Individual retirement income (age 65–69) | ~$38,000 | $55,000–$70,000 |
| Couple retirement income (age 65–69) | ~$72,000 | $80,000–$100,000 |
| Government benefit floor (avg CPP + OAS) | ~$17,800/yr | — |
| Savings at retirement | Varies widely | 25× annual spending gap |
| Home ownership rate (65+) | ~75% | — |
If you are above the median but below your personal spending target, the gap is filled by RRIF withdrawals, TFSA, investment income, and any pension income.
Key Takeaways
- The median individual retirement income in Canada is approximately $32,000–$38,000/year depending on age group
- The average CPP at 65 is ~$760/month — far below the maximum of ~$1,364/month
- One in three OAS recipients also receive GIS — indicating significant low-income retirement in Canada
- Employer DB pension holders retire with income roughly double those without pensions
- High earners must save aggressively — CPP and OAS replace a smaller share of high incomes
- TFSA withdrawals are tax-free and do not count as income for GIS eligibility — a major planning tool
For your personal retirement income floor, see our Canadian retirement income floor guide. To model your own savings vs target, use the retirement calculator. For how much to save by retirement age, read how much do I need to retire in Canada. Visit the retirement planning hub for more.