Your FIRE Number in Canada: How to Calculate It with CPP and OAS
Your FIRE number is the total amount of invested assets you need to retire or achieve financial independence. The baseline formula is 25 times your annual expenses — but for Canadians, CPP and OAS reduce the portfolio required.
The basic formula: FIRE Number = Annual Expenses x 25. If you spend $50,000 CAD/year, the baseline number is $1,250,000. If you spend $70,000/year, it is $1,750,000. But this formula assumes zero government pension income.
Canadians should adjust for CPP and OAS. If you expect $15,000/year from CPP and $8,000/year from OAS at 65, that is $23,000/year you do not need your portfolio to generate. Your adjusted FIRE number becomes ($50,000 - $23,000) x 25 = $675,000 — nearly half the baseline. However, if you retire before 60, you must fund the gap years entirely from savings.
Reducing expenses has a double impact: it lowers your target number AND frees up more income to invest. Cutting $5,000/year in expenses reduces your FIRE number by $125,000 and accelerates your timeline by years.
Your FIRE number is deeply personal — far more about your spending than your income. Two people with identical salaries can have very different FIRE numbers. Someone in Calgary spending $45,000/year needs $1,125,000. Someone in Toronto spending $80,000/year needs $2,000,000.
Revisit and recalculate annually. Factor in expected CPP benefits (available on your My Service Canada Account), anticipated OAS, any workplace pension, and how your expenses may change as you age. The number evolves with your life.
Richify Tip
Richify's AI agents calculate your personalised FIRE number in CAD, factor in your CPP and OAS projections, and show how your current TFSA and RRSP savings rate tracks toward the goal.
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