Average Canadian Has $184K Saved for Retirement — Are You Behind?
The average retirement savings in Canada is approximately $184,000 by age 65, but this number tells only part of the story. If you're wondering whether you're behind on your retirement savings, the answer depends heavily on your age, income, and financial goals. Many Canadians are actually falling short of what they'll need for a comfortable retirement.
Understanding where you stand compared to other Canadians can help you make informed decisions about your retirement planning. Let's break down the numbers by age group and explore what these figures mean for your financial future.
RRSP Balance by Age: The Canadian Reality
When examining RRSP balance by age, the numbers reveal significant disparities across different life stages. Here's what the average Canadian has saved in their RRSP by age group:
Ages 25-34: $15,000 average RRSP balance Ages 35-44: $45,000 average RRSP balance Ages 45-54: $98,000 average RRSP balance Ages 55-64: $156,000 average RRSP balance Age 65+: $184,000 average RRSP balance
These figures represent median balances, meaning half of Canadians have more and half have less. However, it's important to note that these amounts alone likely won't provide adequate retirement income for most people.
The general rule of thumb suggests you should have saved approximately 10-12 times your annual income by retirement age. If you're earning $70,000 annually, you'd ideally have $700,000-$840,000 saved by age 65. This highlights a significant gap between what Canadians are saving and what they actually need.
Canadian Net Worth Beyond RRSPs
While RRSP balances provide one measure of retirement readiness, Canadian net worth tells a more complete story. The average Canadian household net worth is approximately $680,000, but this includes home equity, which comprises a large portion of most families' wealth.
Breaking down the average Canadian's assets: - Primary residence equity: $420,000 - RRSPs and pension plans: $184,000 - Other investments and savings: $76,000
This broader view of wealth is important because many Canadians plan to downsize their homes in retirement, potentially accessing some of their home equity to fund their retirement years. However, relying too heavily on home equity can be risky, especially if real estate markets decline or if you prefer to age in place.
Retirement Benchmarks: Are You On Track?
Financial experts have established retirement benchmarks to help Canadians assess their progress. Here's what you should ideally have saved by each age milestone:
By age 30: 1x your annual salary By age 40: 3x your annual salary By age 50: 6x your annual salary By age 60: 8x your annual salary By age 67: 10x your annual salary
Using these benchmarks, let's look at some real examples:
If you're 40 years old earning $65,000 annually, you should have approximately $195,000 saved across all retirement accounts. If you're 50 and earning $80,000, your target should be around $480,000.
These targets assume you want to maintain your current lifestyle in retirement. If you're planning to spend less or have significant other income sources like a defined benefit pension, you might need less than these benchmark amounts.
The Gender Gap in Retirement Savings
Women in Canada face unique challenges when it comes to retirement savings. On average, women have 30% less saved for retirement than men, primarily due to:
- Lower average earnings throughout their careers - More career interruptions for caregiving responsibilities - Longer life expectancy requiring more retirement funding - Greater likelihood of working part-time
Women should consider strategies like maximizing spousal RRSP contributions and taking advantage of pension splitting opportunities to help bridge this gap.
Provincial Differences in Retirement Readiness
Retirement savings vary significantly across Canadian provinces, largely reflecting income differences and cost of living variations:
Alberta leads with the highest average retirement savings, followed by Ontario and British Columbia. Atlantic provinces typically show lower average savings but also have lower costs of living in many areas.
When evaluating your retirement readiness, consider your province's cost of living and whether you plan to stay in the same area during retirement. Moving to a lower-cost province could stretch your retirement dollars further.
Catching Up on Your Retirement Savings
If you discover you're behind on retirement savings, don't panic. Here are strategies to help you catch up:
Maximize your RRSP contributions. For 2026, the contribution limit is 18% of your previous year's earned income, up to a maximum of $31,560. If you have unused contribution room from previous years, you can contribute more than the annual limit.
Consider a Tax-Free Savings Account (TFSA). With a 2026 contribution limit of $7,000, TFSAs offer tax-free growth and withdrawals, making them excellent retirement savings vehicles.
Increase your savings rate gradually. Even boosting your retirement savings by 1-2% of your income annually can make a significant difference over time. If you're currently saving 5% of your income, aim to increase this to 10-15% if possible.
Take advantage of employer matching. If your employer offers a group RRSP or pension plan with matching contributions, contribute at least enough to get the full match—it's free money.
Automate your savings. Set up automatic transfers to your retirement accounts so you save before you have a chance to spend the money elsewhere.
How Much Income Will You Need in Retirement?
Most financial planners recommend planning for 70-80% of your pre-retirement income in retirement. However, this can vary based on your specific situation:
- If you'll have a mortgage payment, you might need closer to 90% of your pre-retirement income - If your home is paid off and you expect lower expenses, 60-70% might be sufficient - Consider healthcare costs, which often increase in retirement
The Canada Pension Plan and Old Age Security will provide some retirement income, but these programs typically replace only about 40% of the average Canadian's pre-retirement income.
Planning Your Next Steps
Whether you're ahead of or behind the average retirement savings in Canada, the most important step is to create a personalized plan. Consider working with a financial advisor to develop a strategy that accounts for your specific goals, timeline, and risk tolerance.
Remember that these averages are just benchmarks—your ideal retirement savings amount depends on your unique circumstances, including your desired retirement lifestyle, other income sources, and financial obligations.
Ready to see where you stand and create a plan to reach your retirement goals? [Try the retirement gap calculator](/calculators/retirement-gap) to get a personalized assessment of your retirement readiness and discover exactly how much you need to save to meet your retirement objectives.