What is the average retirement savings by age to live comfortably?

Have you saved enough to retire? Discover the average retirement savings by age in Canada with additional budgeting goals and tips.

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Saving for retirement doesn’t have to be a headache or break the bank, but it does require intentional planning.

Understanding Canada's average retirement savings by age can be a useful benchmark for comparing one's financial preparedness to others in similar stages of life. 

It’s important to note that, while enlightening, this metric alone will not determine how much you should save to retire comfortably. That involves setting a financial goal personalized to your current lifestyle, your desired retirement age, and the life you wish to lead once you enter your sunset years.  

Tools like our retirement planning guide can help you gain a sense of how much you’ll need to enjoy a comfortable retirement. With a little planning and some guidance, you can start building a nest egg that will provide financial freedom and peace of mind. 

Average retirement savings by age

The table below outlines the average retirement savings by age in Canada. They do not include debt or non-financial assets, like real estate. Each row includes different types of asset classes, including: 

  • Retirement savings: This refers to Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Locked-in Retirement Accounts (LIRAs), Deferred Profit Sharing Plans (DPSPs), Employer-sponsored Registered Pension Plans (EPPs), annuities and other miscellaneous pension assets.
  • Other financial assets: This includes deposits in financial institutions, mutual funds, investment funds, income trusts, stocks, bonds, and other financial assets.

Breaking down the charts in this way allows you to see where each age group is allocating the most money for retirement. This information is according to Statistics Canada, highlighting 2023 average values for persons who are in, or not in, an economic family. 

Averages for those in an economic family:

Age range
Retirement funds
Other financial assets
Total funds
Under 35 years
$180,181
$180,181
$328,452
35-44 years
$396,435
$191,810
$588,245
45-54 years
$732,404
$344,765
$1,077,160
55-64 years
1,006,013
$439,672
$1,445,685
65 years and older 
$1,001,547
$621,498
$1,623,045

Averages for those not in an economic family: 

People who are not in an economic family include single-person households or those living with roommates. 

Age range
Retirement funds
Other financial assets
Total funds
Under 35 years
$33,157
$35,692
$68,849
35-44 years
$77,948
$51,765
$129,713
45-54 years
$138,435
$44,632
$183,067
55-64 years
$339,910
$493,786
$833,696
65 years and older 
$597,823
$472,652
$1,070,475

How confident are Canadians in their retirement savings?

When it comes to retirement savings, a survey by YouGov (on behalf of Money.ca) finds Canadian confidence levels differ depending on age. 

Those in the 25-34 age group emerge as the most financially confident, even though those in the 55+ age group are more likely to have a larger amount saved. Nearly a quarter (24%) of Canadians ages 25-34 report feeling “very confident” in their ability to have enough money saved for retirement.

A bar chart shows how confident Canadians feel about having enough money saved for retirement.

Confidence appears to be waning among middle-aged Canadians, which could reflect a growing awareness of the financial challenges associated with retirement. Many in this demographic likely face competing financial priorities (like mortgages, children’s education, medical bills, etc.), which can make saving for retirement feel impossible.

Encouragingly, confidence rates rebound as Canadians approach 55 years and older. Twenty-six percent reported feeling “somewhat confident” compared to just 19% of 35-44 and 45-54-year-olds. This improvement may be tied to older Canadians having more clarity — and less fear — about their financial situation as they approach retirement.

Common (and helpful) retirement saving strategies

Choosing how you want to save money for retirement isn’t just about hitting a magic number. By tailoring your plan to each phase of life, you can reach your long-term goals while also enjoying the flexibility to fund other aspects of life today. 

Consider these strategies to help limit the stress of saving for retirement and keep you moving confidently in the right direction.

Time is money—make sure you’re saving early

Starting your savings journey early provides a valuable jumpstart on your retirement fund. The earlier you begin, the more time your money can grow through compound interest

Compounding interest means you earn a percentage of the total amount you have saved plus interest from the amount that’s accumulated on your previous earnings. Think of it like a snowball that gradually grows as it rolls down the hill. The more time the ball rolls, the more snow (money) it accumulates. This could help you retire sooner than if you put off investing. 

Consider using the Rule of 30 for added flexibility

The Rule of 30 is a savings strategy proposed by author Frederick Vettese that suggests allocating 30% of your gross income toward long-term financial goals, including retirement savings, mortgage payments, and childcare costs, if applicable. 

This strategy is designed to adapt to different life stages and expenses, helping you maintain balance while building financial security over time. It’s important to note that the approach and benefits of using this rule may differ depending on your age. 

  • For early savers: The Rule of 30 offers a long-term target and emphasises the importance of starting early to enjoy benefits of compound interest.
  • For mid-life savers: This strategy helps assess whether current savings and contributions are on track to meet future goals.
  • For near-retirees: The Rule of 30 guidelines provide a benchmark to help determine if your current savings will be sufficient or if adjustments are needed. 

Even if you can’t immediately hit the 30% mark, using it as a benchmark can help you steadily increase your savings rate over time.

A graphic highlights The Rule of 30, with three examples for young, middle-aged, and pre-retirement adults.

Company matching

A company match program is a great way to boost your retirement savings with a little help from your employer. Through this benefit, your retirement plan contributions are matched by your employer up to a pre-determined percentage. 

If your company offers an employer match program, it’s recommended that you contribute at least enough to earn the percentage they offer. So, if your company offers a 5% match, consider saving at least 5% of your salary if possible. This will effectively double your contribution and is a simple way to grow your retirement fund faster. 

Contact your HR department to find out if your company offers employer matching and how much. They should also be able to tell you how to enroll in the program if it’s not automatically applied when you hit the match threshold.

Savings goals for each decade

If you’re ready to save for retirement, it’s important to consider the best goals for your phase of life. Here’s a breakdown of the recommended goal for each decade. 

20s: budget and pay down debt

Your 20s are a critical time to set the foundation for your financial future. Whether you’re just entering the workforce or building upon your career, this decade is a great time to start and maintain solid financial habits.

This includes creating a budget that prioritizes your necessities and allocates a small portion toward savings, retirement and paying off debt — even if it’s just a few dollars each month. 

Making a plan could also help alleviate financial stress that can lead to poor mental health outcomes among younger Canadians. Remember: Starting small is better than not starting at all.

30s: save, save, save

Entering your 30s is a time for celebration! This decade often brings exciting milestones like marriage, homeownership, travel or the decision to raise children. To ensure long-term financial stability, saving for each of these life events is important.

Automating your sayings through payroll deductions or regular transfers to a specified account can help you stay consistent. If you can, aim to increase your contributions as your income grows and your expenses fluctuate. 

If you’re financially able, consider using your 30s to dip your toe into investing. Much like saving for retirement, investing early in life can lead to significant rewards down the road.

40s: focus on retirement

Many Canadians retire around the age of 65. That means those in their 40s have about two decades left to prepare so they can fully enjoy retirement. By this decade, many people have fewer significant expenses related to young children or home purchases, freeing up more funds to save and invest. 

If you haven’t already, consider meeting with a financial advisor to discuss your investment options and ensure you’re on the right track to meet your retirement goals. A financial advisor can help ensure you maintain the right mix of high- and low-risk investments ahead of retirement.

50s: catch up

Your late 40s and early 50s are prime earning years. This is the time to catch up on any shortfalls in your retirement strategy or keep going as planned until you reach your goal. If you’re 50 or older, consider making catch-up contributions to accounts with more tax advantages, like an TFSA or RRSP. 

It’s also a good time to start considering your retirement timeline. Are you on track to retire early? Or will you need to push back your deadline to have enough saved for a comfortable retirement? These are important questions to ask now so you’re ready for the future. 

Evaluate your retirement income sources to ensure they align with your projected expenses, and do your best to pay down any remaining debt. This will help reduce your financial obligations in retirement.

60s+: review plans and retire

Before officially retiring, shift your focus from saving to executing your retirement plan. This is when all the work from previous years pays off so you can comfortably age beyond retirement

Canadians who are 65 years or older can choose to take out monthly Old Age Security (OAS) payments. Delaying OAS payments can also be a valuable strategy, because it can lead to an increased monthly payment. 

If you wait to start your OAS payments after age 65, the amount in each monthly cheque will increase. For every month you wait, your payment goes up by 0.6%. If you wait a whole year, your payment will be 7.2% higher. If you wait a maximum of five years (until age 70), your payment will be 36% higher.    

With careful planning, you can transition smoothly into retirement and enjoy the fruits of your financial discipline and planning.

Sources of retirement income in Canada

Anyone who wishes to retire in Canada should understand the country’s retirement income system. This includes three pillars: the Old Age Security Program (OAS), the Canada Pension Plan (CPP)/Québec Pension Plan (QPP) and workplace pension plans and private savings.

A graphic defines the elements of Canada’s Three Pillar Retirement System.

These public pension plans are not intended to be your sole source of income in retirement. It’s critical that you save during your working years so you can build a safety net large enough to sustain your standard of living after leaving the workforce. You can accomplish it in a few ways, including through specialized retirement savings accounts. 

Retirement savings accounts to consider

There are many different ways you can build up your retirement. Retirement savings accounts are specifically designed to help you save money to support your lifestyle once you’re done working. 

These accounts often offer tax benefits and are designed for long-term growth, making them valuable assets when planning for retirement. Below, you can find two of the most popular types of retirement savings accounts. 

Tax-Free Savings Accounts (TFSA)

A Tax-Free Savings Account (TFSA) is available to any Canadian resident who is over the age of 18 and has a Social Insurance Number.

While contributions to a TFSA are not tax-deductible, they offer tax-free growth and withdrawals within an annual limit. In 2024, the Canadian government listed the annual contribution limit for a TFSA as $7,000. 

You can also withdraw funds from your TFSA anytime for any purpose without incurring taxes or penalties. This offers a substantial financial benefit to Canadians who can contribute. 

Registered Retirement Savings Plan (RRSP)

Once established, a Registered Retirement Savings Plan (RRSP) can hold large amounts of income and investments specifically for retirement. The Canadian government offers this plan, which allows spouses or common-law partners to contribute. 

Any interest or earnings from your RRSP are tax-free — until you decide to retire — and offer an avenue for different types of investments. For example, you can hold stocks, mutual funds, etc., within the account where they can grow free from taxation. 

You can also earn tax deductions on earnings within this account, but keep in mind that you will have to pay taxes on these funds once you withdraw them. 

Start building your nest egg now

How much you need to retire in Canada depends entirely on your unique circumstances and your desired retirement lifestyle. Learning the average retirement savings by age should provide motivation and insight, not discourage savers. 

If you fall behind in your demographic, just know it’s not too late to start building your retirement fund. Here are a few steps you can take if you’re afraid to run out of money once you leave the workforce. 

Still not sure where to start? Money.ca is here to help with every stage of your financial journey. 

Methodology: Average retirement savings by age

Original data presented by Money.ca was gathered through a survey conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys.

Emails were sent to panelists selected at random from the base sample. The e-mail invited them to take part in a survey and provided a generic survey link. Once a panel member clicked on the link they were sent to the survey that they were most required for, according to the sample definition and quotas. (The sample definition could be "US adult population" or a subset such as "US adult females"). 

Invitations to surveys don’t expire and respondents could be sent to any available survey. The responding sample is weighted to the profile of the sample definition to provide a representative reporting sample. The profile is normally derived from census data or, if not available from the census, from industry accepted data.

All original data presented in this article is from YouGov Plc. The total sample size was 1011 adults. Fieldwork was undertaken between 25th November - 1st December 2024. The survey was carried out online. The figures have been weighted and are representative of all CA adults (aged 18+).

Scott Birke Content editor, Money.ca

Scott Birke is a financial content editor at Money.ca.

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