Canadians say how much money they need to achieve financial independence

Canadians aim for financial independence but worry about market volatility, with RBC’s poll showing they estimate needing $846,437 to achieve it. 

This amount is higher for those in Alberta ($928,179), Saskatchewan/Manitoba ($958,535), and Ontario ($916,714). Generational differences are also evident, with Gen X estimating $1,128,990 and Millennials expecting to need $945,748. 

In 2024, 49 percent of Canadians invested, including 49 percent of Gen X and 46 percent of Millennials.

Market concerns remain high, with 48 percent of respondents citing volatility and investment performance as major risks.  

Among Millennials, 54 percent expressed these concerns, while 46 percent of Gen X shared the same sentiment. 

The poll found that 51 percent of Canadians have either a formal or informal financial plan.  

Among Millennials, 50 percent reported having a financial plan, with 42 percent saying it made them feel ‘confident’ and 30 percent feeling ‘reassured.’  

For Gen X, 44 percent have a plan, with 38 percent feeling ‘confident’ and 35 percent feeling ‘reassured.’ 

Craig Bannon, director of Regional Financial Planning Support at RBC, acknowledged the uncertainty investors face.  

He said they are speaking with investors who have many questions due to current uncertainty.  

While clear answers can be difficult to provide, he noted that “one thing remains constant: the value of having – and sticking to – a good financial plan with a long-term approach, to help get through any periods of turmoil.” 

The survey also examined where Canadians are putting their money. Of those who invested in 2024, 24 percent chose mutual funds, 20 percent invested in stocks, and 21 percent placed funds in GICs or term investments.  

Additionally, 16 percent contributed to a pension plan, 10 percent invested in ETFs, and 5 percent purchased cryptocurrency, such as bitcoin. 

Regionally, investment activity varied. Alberta had the highest percentage of investors at 59 percent, followed by Ontario at 53 percent and British Columbia at 51 percent.  

Stock investment was most common in Alberta at 28 percent, while GICs and term investments were favoured by 31 percent of Boomers and 26 percent of British Columbians. 

Despite financial concerns, 41 percent of Canadians say their main financial goal is achieving financial independence. Over half (55 percent) believe they will reach this milestone in their lifetime, though optimism varies across generations and regions. 

Bannon emphasized the importance of taking action with available funds; warning that waiting for the ideal moment to invest could mean missing opportunities for growth.  

He added, “This is where time in the market, rather than timing the market, is important.”