The average RRSP balance for a 65-year-old Canadian is generally estimated to be between $129,000 and $160,000, based on 2024–2025 reports. Some estimates suggest a broader range of $180,000–$250,000, while median savings are often lower, closer to $102,200. These figures vary by income and often fall short of the $500,000+ needed for a comfortable retirement.
The average RRSP balance for a 65-year-old Canadian is roughly $140,000 to $160,000, based on data from recent surveys. While that amount may look reasonable, it often falls short of what retirees need to maintain a comfortable lifestyle, especially once the RRSP converts into an RRIF and mandatory withdrawals begin.
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.
If the TLDR chart is true, then the only about 7-8% of the Canadian population has 500K or more.
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.
Americans ages 65–74 have a median net worth of $410,000, the highest of any age group. About 76% own a home and 51% have a retirement account, making home equity and savings the biggest drivers of wealth at this stage.
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.
The top ten financial mistakes most people make after retirement are:
Yes, retiring comfortably with $500,000 is achievable. This amount can support an annual withdrawal of up to $34,000, covering a 25-year period from age 60 to 85.
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.
The five key mistakes to avoid in a TFSA are over-contributing (and re-depositing withdrawals in the same year), treating it like a basic savings account (missing out on investment growth), failing to track your room (relying solely on CRA data), improperly moving funds (withdrawing and redepositing instead of transferring), and investing in non-qualified assets or high-risk trades (like day trading or certain foreign stocks that incur withholding tax).
The average TFSA balance in Canada is under $40,000. Roughly 40% of TFSA accounts are invested entirely in cash or GICs. Only about 10–12% of Canadians max out their TFSA every year.
By retirement, the average Canadian has saved about $272,000 in cash, according to Stats Canada. Savings jumped during COVID, but mostly among richer Canadians. People with higher incomes made up about 40% of this increase because they didn't face as many job losses.
A good retirement nest egg aims to replace 80% of your pre-retirement income, often meaning you need 10-12 times your final salary saved by retirement (around age 67), but the exact amount varies greatly by lifestyle, expected expenses (especially healthcare), and retirement age, with rules like saving 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67 being helpful benchmarks.
Key Points. The 4% rule is a popular strategy for managing retirement savings. Suze Orman thinks 4% may be too aggressive a withdrawal rate today. She recommends a more conservative approach coupled with other means of attaining financial security in retirement.
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.
It's important to understand the options available to help protect the assets you've spent a lifetime accumulating.
About 90% of millionaires build wealth through long-term investing, often focusing on real estate, starting their own businesses, and making consistent, disciplined financial choices like budgeting, saving, and continuous self-education, rather than flashy spending, with a strong belief in controlling their own financial destiny. They prioritize tangible assets and income streams, using strategies like leverage and tax benefits, and avoid excessive spending on depreciating assets like luxury cars.
A common starting point is to estimate that you'll need about 70% to 80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earn $150,000 annually while working, you might need between $105,000 to $120,000 as a starting point in retirement.