To help you get started, we’ve compiled guidelines and benchmarks based on age groups so you can track your progress and calculate how much you need to save for your golden years. We also rounded up the average savings of Canadians, so you can see how your current finances compare to those of other people your age.
If you feel like you’re behind, don’t get discouraged. It’s never too late to save for retirement. With a solid retirement plan, consistent contributions to tax-advantaged accounts, and enough time, you can build up a sizable nest egg no matter your age.
How Much Do You Need to Retire in Canada?
According to Statistics Canada, the pre-tax median retirement income for senior families is $65,300 per year. Everyone has different incomes, expenses, and goals, though, which means there is no one-size-fits-all approach when it comes to retirement savings.
The amount you need to save depends on a variety of factors, such as:
- The age you want to retire
- Where you want to live
- The kind of lifestyle you want to live
- Whether you’ll continue working during your retirement years
- Whether you’ll support other family members
- Whether you’ll have to pay down a mortgage or other debt
Many financial planners say you’ll need around 70% of your pre-retirement income to fund one year of retirement. This is assuming your living expenses decrease once you’re retired. For example, no more commuting expenses, fewer dependents to support if your kids have left the nest, and lower housing costs if your mortgage is paid off.
There is also a good chance you’ll live at least 25 years after you retire, which means you should take 70% of your annual salary and multiply it by 25. The total is how much you need to retire in Canada. Let’s say you make $60,000 per year – 70% of that is $42,000. Multiply by 25, and you get a total of $1.05 million.
The 4% rule is another popular way to calculate your target number. The guideline advises you to withdraw 4% of your investment portfolio every year and, by doing so, ensures your nest egg will last at least 30 years. For example, if you have $1 million in an investment portfolio consisting of 50% stocks and 50% bonds, you can withdraw and live off of $40,000 during your first year of retirement.
The percentage you withdraw always stays the same, but the dollar amount increases every year with inflation. To get started with the 4% rule, figure out how much your annual expenses will be in retirement and then use that number to determine how large your nest egg needs to be.
Remember, these are general guidelines, and you’ll need to consider your personal circumstances to calculate an accurate retirement savings goal. If saving over $1 million seems like a pipe dream, don’t worry. It’s possible to amass a hefty savings account if you start saving early, make steady contributions, and take advantage of tax-advantaged accounts. More on that later.
In Canada, the average person has around $272,000 saved by the time they retire. This averages out to a household income of $514,000. This is just in cash savings, though. These numbers don’t include assets or any pensions that you will receive. The average amount that Canadians hold in RRSPs (Registered Retirement Savings Plans) was $144,613 as of 2022 and dropped to $113,070 in 2023.
How Much Should You Have Saved by Age in 2026?
Figuring out how to save a massive lump sum can be intimidating if you’re not sure where to start. Luckily, financial services company Fidelity crunched the numbers and came up with age-based milestones you can use as general benchmarks for your retirement planning.
According to Fidelity, you should have at least one year’s salary saved by the time you’re 30. By age 60, you should have stashed away at least eight times your annual salary if you want to continue living your current lifestyle in retirement.
| Age | Number of Annual Salaries Saved |
| 30 | 1 |
| 35 | 2 |
| 40 | 3 |
| 45 | 4 |
| 50 | 6 |
| 55 | 7 |
| 60 | 8 |
| 67 | 10 |
These milestones are based on the following assumptions:
- You save 15% of your annual income starting from age 25 (includes employer-matched pension plans)
- You invest over 50% of your savings in stocks over your working career
- You retire at age 67 and want to maintain your pre-retirement lifestyle
This means that by age 30, if you make a yearly salary of $50,000, then you should have around $50,000 saved. By 40, you should have $150,000 saved, and by 50, $300,000.
How Much Money Does the Average Canadian Have Saved for Retirement?
Statistics Canada tracks asset and debt levels held by Canadian households. The following tables feature the latest average values from 2019. See how your savings compare with those of other Canadians your age.
Retirement savings refer to:
- Registered Retirement Savings Plans (RRSPs)
- Registered Retirement Income Funds (RRIFs)
- Locked-in Retirement Accounts (LIRAs)
- Employer-sponsored Registered Pension Plans (EPPs)
Financial assets refer to:
- Tax-Free Savings Accounts (TFSA)
- Deposits in banks
- Mutual funds
- Stocks
- Bonds
- Other financial assets
Please note that the tables don’t include debt and non-financial assets such as real estate and vehicles.
However, these aren’t the only ways that you can save for retirement. You can save using a regular savings account, a high-interest savings account, and other forms of savings accounts.
Average Savings of Economic Families
An economic family refers to a group of two or more people who live in the same home and are related to each other by blood, marriage, common-law partnership, adoption, or foster relationship.
| Age | Retirement Savings | Financial Assets | Total Savings |
| Under 35 | $90,500 | $42,900 | $133,400 |
| 35-44 | $220,500 | $51,600 | $272,100 |
| 45-54 | $437,400 | $127,000 | $564,400 |
| 55-64 | $645,500 | $163,600 | $809,100 |
| 65+ | $514,800 | $224,400 | $739,200 |
Average Savings of Single Individuals Not in an Economic Family
| Age | Retirement Savings | Financial Assets | Total Savings |
| Under 35 | $40,100 | $18,800 | $58,900 |
| 35-44 | $89,700 | $36,200 | $125,900 |
| 45-54 | $290,900 | $59,600 | $350,500 |
| 55-64 | $377,300 | $69,200 | $446,500 |
| 65+ | $272,100 | $112,000 | $384,100 |
If we break this down a little further into how much the average Canadian saves per month, you would see it between $1,200 and $2,300. How much you save, though, just depends on your monthly income and your bills.
What is the Average Net Worth of Canadians by Age?
Statistics Canada also monitors the average net worth of Canadians. Net worth is assets minus liabilities. Assets include retirement savings, financial assets, real estate, and vehicles, while liabilities consist of loans, mortgages, and other debt.
Average Net Worth of Economic Families
| Age Group | Net Worth |
| Under 35 | $336,100 |
| 35-44 | $589,300 |
| 45-54 | $1,123,200 |
| 55-64 | $1,401,900 |
| 65+ | $1,298,800 |
Average Net Worth of Single Individuals Not in an Economic Family
| Age Group | Net Worth |
| Under 35 | $79,100 |
| 35-44 | $212,500 |
| 45-54 | $451,700 |
| 55-64 | $544,800 |
| 65+ | $589,700 |
How Should You Save for Retirement by Age Group?
It’s never too early or too late to save, especially in 2026. A good way to measure progress and calculate potential savings is to set a personal finance goal, depending on your life stage.
It’s also recommended to review your retirement savings plan every 3 years or whenever a significant life event occurs (e.,g. marriage, divorce, or the birth of a child). Again, the following tips are just guidelines, so don’t feel disheartened if you haven’t started saving or can’t contribute much to retirement right now.
Saving in Your 20s
After graduating from college or university, focus on paying off your student loans as fast as possible. Start building a healthy credit score by paying your bills on time and establishing an emergency fund with enough money to cover three to six months of unexpected expenses.
When you enter the workforce, aim to put away at least 15% of your gross income for retirement. If your company offers an employer-based retirement savings plan (RPP), sign up immediately, as most employers match your contributions to help you grow your nest egg faster.
Retirement may be the last thing on your mind when you’re in your 20s, but the earlier you start saving, the easier it will be. Saving early allows you to save less each month and gives your money more time to reap the benefits of compound interest. You can use side-by-side savings for a down payment with a first home savings account.
Let’s say you save $181 every month for 20 years and earn an annual interest rate of 5% compounded on your savings. After two decades, you’ll have almost $75,000 saved and earned over $30,000 in interest. If you only have 10 years to save the same amount, you’ll have to put away $480 per month and earn only $16,940 in interest.
| Years to Save | Savings per Month | Total Amount Saved | Interest Earned |
| 20 | $181 | $74,400 | $30,960 |
| 10 | $480 | $74,540 | $16,940 |
Saving in Your 30s
From getting married to starting a family, your 30s are often filled with major life events. It can be hard to focus on retirement savings when you’re paying a mortgage and childcare expenses, but try to contribute as much as you can to your RRSP and TFSA.
These tax-advantaged savings accounts offer many perks. RRSP contributions reduce the amount of income taxes you pay, and any investment income earned within the account can grow tax-deferred until it’s withdrawn. TFSA contributions and the investment income earned within it are always tax-free, even when withdrawn.
Saving in Your 40s
Your 40s are usually your peak earning years. Use salary raises and bonuses to strengthen your savings and pay down debt. Look for ways to cut back on monthly expenses. For example, you could get a lower monthly payment by refinancing your mortgage or reviewing your insurance plans.
If you’re behind on your goals or haven’t been able to think about retirement until now, talk to a financial advisor about your savings options and goals.
Saving in Your 50s
With retirement just around the corner, now is the time to max out your RRSP and TFSA and take care of any remaining debt. Monitor your investments and ensure you have sufficient sources of retirement income to support your golden years. Make a budget and use the Canadian Retirement Income Calculator to see how much you could receive from the Canada Pension Plan (CPP), Old Age Security (OAS), and other retirement benefits.
In 2025, the average CPP monthly amount is $899.67, with the maximum set at $1,433.00. The maximum OAS monthly amount is $727.67. Even if you get the maximum amount from both programs, you’ll only receive $25,928.04 annually. Government benefits aren’t enough to support you through retirement, which is why it’s important to strengthen your RRSPs and personal savings.
Saving in Your 60s
In your 60s, you can keep working to bulk up your savings or leave the workforce if you’ve hit your target number. If you’re not sure if you can quit your job yet, use the Government of Canada’s retirement financial checklist to gauge your financial well-being.
You can start collecting CPP when you’re 60, OAS when you’re 65, and withdraw money from your RRSP accounts. RRSP withdrawals are taxable, which means you’ll have to report them as income and pay income tax. Keep in mind RRSPs must be fully withdrawn or converted into an RRIF during the calendar year you turn age 71.
Should You Save First or Pay Off Debt?
While paying off debt is always a good goal in 2026, you should pay yourself first and build a small rainy day fund before you start. This should be just a small amount, such as $1,000 or one month’s worth of expenses. Once that’s done, it’s a good idea to then start aggressively paying off high-interest debt. This is because the interest you pay on that debt is more than you can earn on a savings account.
The Amounts That Renters Should Save Versus Homeowners
The fact is, renters need to save 50% more than homeowners before retirement age. This is because homeowners have a paid-off home that they can use as a major asset. Even with:
- CPP contribution rates
- Pension adjustments
- CPP enhancements
- Guaranteed Income Supplement
Earning more isn’t always an option due to OAS clawbacks, and delaying CPP won’t always make the most sense for your financial situation.
How to Catch Up If You’re Behind at 45
If you’re looking to catch up on your savings when you’re behind, there are many things you can do, including:
- Auditing your net worth
- Eliminating high-interest debt
- Maximizing registered accounts
- Getting a side gig
As for catch-up contributions, another good option is to start investing, not just in a retirement fund or an emergency fund. You can create financial security and enjoy a comfortable retirement without needing employment income or relying exclusively on your home equity. That said, you do need to be aware of the risk of the sequence of returns.
You can do this using;
- Dollar-cost averaging
- Index Funds
- Exchange Traded Funds
- GIC Ladders
- Asset allocation
- Robo advisors or financial advisors
- Diversified portfolios
- Fidelity investments
Not only does this teach you financial literacy, but it also allows you to retire comfortably without wealth transfer since the average inheritance isn’t enough to sustain a full retirement.
What Are the Savings Benchmarks for Self-Employed and Gig Workers?
Self-employed and gig workers will have different savings benchmarks than those who are traditionally employed. Not only are you going to need an income replacement ratio of 70% or more to be able to retire, but you also need a percentage of income saved (25%-30%) to pay your taxes. You should also be using the 50/30/20 rule to save for a rainy day, no matter what tax bracket you fall in.
Canada Vs. The US: Savings By Age
When it comes to savings by age in Canada Vs the US, you’re going to notice that the dollar figures are different, just like the:
- net worth percentile
- homeownership rate
- median household income
- average salary by age
| Age | Canada | US |
| Under 35 | $36,500 | $30,170 |
| 35 to 44 | $139,500 | $60,000 |
| 45 to 54 | $290,000 | $140,000 – $160,000 |
| 55 to 64 | $377,000 | $200,000 – $250,000 |
| 65 plus | $319,000 | $400,000 – $500,000 |
