Canadian Retirement by Age: How Your Savings Stack Up

2026-02-15 21:01:58

As you progress through different life stages, understanding how your retirement savings compare to peers in your age group becomes increasingly important. Recent data from Canadian financial institutions reveals significant variation in average savings by age in Canada, challenging assumptions many have about retirement readiness. Whether you’re in your thirties, fifties, or already retired, knowing the benchmarks for your age bracket can help guide your financial planning strategy and identify whether you’re on track for a comfortable future.

How Much Are Canadians Actually Saving? Breaking Down the Numbers by Age

According to Ratehub, the typical Canadian over 65 has accumulated approximately $129,000 in their Registered Retirement Savings Plan (RRSP). When Tax-Free Savings Accounts (TFSAs) are factored in, this figure rises to about $160,000. In total, the average Canadian retiree maintains roughly $319,000 across all retirement accounts—though this number masks considerable variation based on when someone began saving.

Here’s how average and median retirement savings by age in Canada compare, based on Federal Reserve data and other research sources:

Under 35: Average of $49,130 (Median: $18,880) Ages 35-44: Average of $141,520 (Median: $45,000) Ages 45-54: Average of $313,220 (Median: $115,000) Ages 55-64: Average of $537,560 (Median: $185,000) Ages 65-74: Average of $609,230 (Median: $200,000) Ages 75+: Average of $462,410 (Median: $130,000)

Notice the dramatic acceleration between ages 45 and 65—savings roughly double from the mid-career range. This underscores why financial advisors consistently emphasize the power of compound interest over extended timeframes.

Canada’s Retirement System vs. the U.S.: Why the Difference Matters

When comparing Canadian retirement outcomes to American ones, an interesting picture emerges. While U.S. Social Security typically pays higher maximum benefits than Canada’s Canada Pension Plan (CPP), the Canadian system offers meaningful advantages in tax efficiency and supplementary benefits. As of 2022, the average CPP payment was $702.77 monthly, with a maximum of $1,253.59. Old Age Security (OAS) adds up to $642.25 monthly at maximum.

Canada’s approach differs from the U.S. in a critical way: pension plans offered through Canadian employers remain relatively common, whereas such plans have become rare south of the border. Additionally, taxation on retirement income in Canada runs at approximately 4.95% compared to 6.2% in the U.S., providing modest but meaningful relief for those on modest fixed incomes.

What Your Age Says About Your Retirement Readiness

The distribution of average savings by age in Canada reveals an important truth: most people fall significantly short of what financial planners recommend. The combined CPP and OAS maximum yields roughly $22,750 annually—a figure insufficient for most modern retirements. This reality means that personal savings accumulation becomes essential, not supplementary, to retirement security.

For those in their 40s with $313,000 saved on average, the trajectory suggests adequate progress. However, those approaching 55 with less than $185,000 in median savings face a compressed timeline to catch up, making the following decade critical for aggressive saving.

Build Your Nest Egg: Six Proven Tactics to Grow Retirement Savings

To construct a substantial retirement fund, consider implementing these approaches:

Start sooner rather than later: The earlier you begin contributing, the more your investments benefit from compound growth. A dollar invested at 35 will roughly double or triple by retirement through market growth alone.
Maximize registered account limits: Contribute the full amount allowed to both RRSPs and TFSAs annually. These accounts shield your growth from taxation, accelerating wealth accumulation.
Capture employer matching: If your workplace offers pension contributions or matching on retirement accounts, contribute enough to receive the full employer benefit. This represents immediate returns on your investment.
Spread investments across asset classes: Rather than concentrating everything in one type of investment, diversify across stocks, bonds, and other assets to balance risk and opportunity.
Automate your contributions: Set up automatic monthly transfers to your retirement accounts. This removes emotional decision-making and ensures consistent progress toward your target.
Work with a financial professional: A qualified advisor can help you assess your current trajectory, identify gaps, and develop a customized plan tailored to your specific circumstances and timeline.

The Gap Between Dreams and Reality for Canadian Retirees

Despite best intentions, many Canadians harbor legitimate concerns about retirement adequacy. An April 2024 AARP survey found that 31% of working-age adults saving for retirement express uncertainty about whether they’ll have enough, while 33% believe they will fall short. This anxiety reflects a genuine mismatch between what people are accumulating and what they believe they’ll need.

The disconnect often stems from underestimating living costs, failing to account for healthcare expenses, or beginning retirement planning too late in life. For those currently tracking the average savings by age in Canada and finding themselves below median for their cohort, the message is clear: there’s still time to adjust course, but action is required now, not later. Your age determines both how much time remains and how aggressively you need to save to close any gap.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.