If you’re 55 and wondering how your Registered Retirement Savings Plan (RRSP) stacks up, let’s cut through the noise with the latest data.
Right now, in early 2026, the average Canadian RRSP balance at age 55 sits roughly around $180,000. That’s the mean figure pulled from recent StatsCan-linked reports and financial surveys. Of course, an average number can get swayed by some rather large balances among the wealthiest Canadians, which bring this number down materially.
By just how much, you might ask? Well, the median is closer to $120,000 according to most surveys, and that includes a mix of both RRSP and pensions, which can account for a significant chunk of future passive income in retirement.
Let’s dive into what this number probably should be, and what Canadian investors can do to catch up.
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What should the number actually be?
A number of leading financial planners, like those at Fidelity and Ratehub, suggest investors at age 55 put around four to six times their salary away in retirement accounts. So, for those with a household income of around $150,000 per year at age 55 (incomes tend to rise throughout one’s career), that might mean having between $600,000 and $900,000 saved by this age is a good starting point.
Thus, even using a $100,000 figure, that lower end of the spectrum (would work out to around $400,000 at the lower end) is still far off from where the average Canadian is at right now.
I’m of the view that a conservative 4-5% withdrawal rate should be used in retirement. Thus, for those who won’t expect large Canada Pension Plan or Guaranteed Income Supplement payments in retirement, having a $1 million balance would allow for around $50,000 a year in additional spending (or around $4,000 a month). For many Canadians, that may be enough. For others, perhaps not enough to bridge the government funding gap.
How to catch up
Now, for the big question: how should those approaching retirement think about catching up and getting “on the right path,” so to speak? Of course, most will point to raising one’s contributions immediately, and that’s a big piece of the puzzle, for sure.
That said, it’s worth pointing out that those aged 55 do have time on their side. There are about 16 years between this age and the age when investors are required to make RRSP withdrawals (71). By being able to max out one’s limit each year (roughly 18% of earned income, up to a little more than $33k per year), there’s certainly the potential to see these dollars grow, particularly if this bull market continues.
Of course, having some dry powder set aside in cash or cash-like instruments can help weather any near-term volatility, which can become a bigger problem for those inching toward retirement. But by staying invested and allowing compound interest to do its thing, that’s key to most long-term retirees’ success.