How much do I need to retire in Ottawa?

Jun 11

By Jason Simpson, Financial Planner at Trailway Wealth Advisors

“How much money do I need to retire?”

I’ve received many variations of this question from my clients over the years. Unfortunately, there isn’t a single answer that will satisfy everyone.

The safe, professional answer is: “It depends.” While this is a fair response, it doesn’t answer the question.

A Google search for “How much do I need to retire?” turns up several articles. Some describe the “70% rule”. Others go into detail about the Canada Pension Plan and Old Age Security. Many simply write about all the money you should have saved.

None, however, offer a number that answers the question. Let’s change that.

Preliminary Research

By the conclusion of this article, I want to answer the following question:

What are the average costs of necessities for a retiree in Ottawa?

Why Ottawa? Well, it’s where me and most of my clients live. But also, it’s a good representation of the average Canadian city. Not notoriously expensive like Toronto, nor inexpensive like the prairies.

Our model retiree will have the following attributes:

1) Age (60+)

2) Single or married

3) Primary financial concerns: food, shelter, and transportation for themselves.

4) Modest lifestyle expenses.

5) In good health

The numbers:

Housing Costs

In April 2026, the average rents in Ottawa were:

- One-bedroom apartment: $1,955

- Two-bedroom apartment: $2,457

- Want a bit more space? The average cost to rent a house: $2650/month.

Based on the above figures, we’ll round to $2,500/month for housing costs.

(We’re using rentals because owning a home comes with variable costs that aren’t as straightforward to calculate. Rentals are easier.)

Food

A single person in Ottawa needs $435/month to maintain a healthy diet.

Let’s compare this with other available data. According to Statistics Canada 2023 data, the average Canadian household spends $722/month on “food from stores”, which mostly means groceries.

Let’s average the two figures ($435 and $722). This gives us:

- Monthly food cost: $578

We will round to $600 to account for supplies.

Transportation

Getting around Ottawa without some form of transportation can be challenging. Our retiree needs a car.

We will assume this person is leasing their car. It’s just easier, and the cost of financing a car isn’t wildly different anyway.

- Average monthly lease payment (Canada): $450+tax.

- Average car insurance cost (Ottawa): $86 per month.

Total: $536 per month to own a drivable vehicle in Ottawa. Let’s round down to $500.

What about Fuel, Utilities, Maintenance, and other ongoing expenses?

I’m glad you mentioned that! Let’s add $275/month for utilities (halfway between the “$200 to $350” range that several Ottawa realtors have publicly written about). And another $225/month for miscellaneous expenses, including fuel for the vehicle.

This is a total of $500/month.

Final Calculations

For a single retiree, we’ve got:

- $2500 for housing

- $600 for groceries and supplies

- $500 for a vehicle

- $500 for utilities and lifestyle.

We’ll double the grocery, transportation and lifestyle costs for the married couple, bringing the numbers to:

- $2500 for housing

- $1200 for groceries and supplies

- $1000 for a vehicle

- $725 for utilities and lifestyle.

Therefore, a reasonable rule of thumb for a retiree in Ottawa is:

- Single person: $4100/month

- Couple: $5425/month

There we have it. The overly generalized answer that we all crave. $4100/month for a single person, and $5425 for a couple.

Potential Criticisms

Now before anyone jumps in to tell me how wrong and stupid this is, I want to say:

You’ve got a point.

This exercise is not meant to be an accurate reflection of everyone’s needs. All I’ve done is make a few assumptions, take the average cost of necessities, and add them up. I did my research and applied my personal experience as a financial planner in Ottawa in doing so. But this was not a rigorous scientific study.

Said in other words – this is a very, very rough figure.

(That said, according to Statistics Canada’s 2024 Canadian Income Survey, the average monthly after-tax income for a single retiree was $2,800/month. For a “senior family” it was $6,183 per month. So we are in the right ballpark.)

Conclusion

When a professional does retirement planning for clients, we consider their specific financial situation and goals, not some hastily cobbled together number like the one I’ve provided in this article.

So why do this exercise at all?

Well, there are people who haven’t retired yet and need some kind of benchmark. They might be worried about their ability to retire in the future.

And maybe they don’t have access to a financial planner or advisor.

At least by having a benchmark like this, people can use these figures and add or subtract items to reflect their own situation.

I truly hope that this post gives people who are retiring in Ottawa some insight into how much income they’ll need to do so comfortably.

That’s all for now,

Jason