The average Canadian aged 65 or older holds approximately $129,000 to $150,000 in their Registered Retirement Savings Plan (RRSP). When including other registered savings like TFSAs, this amount rises to about $160,000-$283,000, though these figures vary widely based on income and workplace pension availability.
To have the same lifestyle you're enjoying today you'll need an average of 60 to 80% of your pre-retirement income throughout your retirement years. You may need more or less, depending on the retirement lifestyle you want.
This is just in cash savings though, These numbers don't include assets or any pensions that you will receive. The average amount that Canadians hold in RRSPs (Registered Retirement Savings Plans) was $144,613, as of 2022 and dropped to $113,070 in 2023.
A Statistics Canada Survey of Financial Security found that Canadian families' average net worth in 2023 was $519,700 (2). Yet the same survey showed that the net worth among adults aged 55 to 64 who own their home and have an employer-sponsored pension was about $1.4 million.
If the TLDR chart is true, then the only about 7-8% of the Canadian population has 500K or more.
They have diversified assets and enjoy a comfortable retirement cushion. Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement. However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work.
The Canada Revenue Agency (CRA) TFSA statistics show Canadians aged 65 to 69 held an average fair market value of about $56,106 in 2023. Is that enough? It depends on spending, housing costs, pensions, and how long you want your money to last. But if you're looking to retire, likely not.
The main government source is the Canada Pension Plan (CPP), which pays out based on your lifetime contributions. * For 2024, the maximum benefit for someone retiring at age 65 is $1,364.60 per month, although the average payout is actually much lower, at $831.92 per month.
Key facts about average retirement savings
According to the Federal Reserve, people aged 65 and 74 have an average of $609,230 and a median of $462,410 saved for retirement. Data from Edward Jones shows that 65-year-olds earning $50,000 a year have between $525,000 and $605,000 saved for retirement.
Surveys have found only about 13% of Canadians consistently hit their RRSP limit annually, and an Edward Jones poll in early 2024 showed just 21% planned to contribute the maximum for the year.
Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.
In order to be considered wealthy in Canada, you should have a net worth of at least $1 million. That being said, a lot of Canadians who are considered wealthy live a relatively normal life. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three.
In late 2024, for example, during a parliamentary squabble over increasing Old Age Security (OAS) benefits for those aged 65 to 75, it was revealed that the median net worth of Canadians over 65 had risen to almost $550,000.
Between 2018 and 2022, the threshold to enter the top 10% rose by 14.3%, from $97K to $111K reflecting higher overall income levels among Canada's top earners. By 2022, the average income was $197,900, which is over $50,000 higher than the median of $147,100.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.