The Registered Retirement Savings Plan (RRSP) is still the most widely used retirement savings tool in Canada. But how much do Canadians actually have saved? For most, not nearly enough.
Table of Contents
Average RRSP Balance by Age
Age Group
Average RRSP Balance
Median RRSP Balance
Recommended Target
18-24
$3,500
$1,200
$5,000+
25-29
$12,000
$5,500
$20,000+
30-34
$28,000
$14,000
$50,000+
35-39
$52,000
$27,000
$95,000+
40-44
$82,000
$42,000
$150,000+
45-49
$115,000
$58,000
$220,000+
50-54
$155,000
$75,000
$310,000+
55-59
$195,000
$95,000
$420,000+
60-64
$225,000
$105,000
$550,000+
65-69
$210,000
$92,000
N/A (RRIF conversion)
70+
$170,000
$72,000
N/A
Note: The average is pulled up by high-income earners. The median (middle value) better reflects what a typical Canadian has.
Average Total Retirement Savings (All Registered Accounts)
Including RRSP, TFSA, LIRA, and defined-contribution pensions:
Age Group
Average Total
Median Total
25-34
$28,000
$12,000
35-44
$95,000
$48,000
45-54
$185,000
$95,000
55-64
$310,000
$155,000
How Much You Should Have Saved
A widely used benchmark: aim for a retirement portfolio of 10-12× your desired annual retirement income by age 65.
Desired Retirement Income
Savings Needed (+ CPP/OAS)
Savings Needed (No CPP/OAS)
$30,000/year
$250,000
$550,000
$40,000/year
$400,000
$750,000
$50,000/year
$550,000
$950,000
$60,000/year
$700,000
$1,150,000
$75,000/year
$925,000
$1,425,000
$100,000/year
$1,250,000
$1,900,000
CPP + OAS can provide $20,000-$30,000/year depending on your contribution history and when you start collecting.
RRSP Contribution Room and Limits
Tax Year
RRSP Contribution Limit
2024
$31,560
2025
$32,490
2026
$33,000 (estimated)
How Your Limit Is Calculated
Component
Formula
Annual earned income × 18%
Up to the annual max
Minus pension adjustment
If you have a workplace defined-benefit pension
Plus unused room
Carried forward from previous years indefinitely
Example: If you earned $80,000 in 2025, your new RRSP room is $14,400 (18% × $80,000) — plus any unused room from prior years.
RRSP Tax Benefit
Marginal Tax Rate
Tax Refund per $1,000 Contributed
Effective Cost
20.5% (federal only)
$205
$795
29.3% (fed + prov avg)
$293
$707
37.9% ($55K-$111K in Ontario)
$379
$621
46.4% ($111K-$155K in Ontario)
$464
$536
53.5% ($220K+ in Ontario)
$535
$465
The higher your tax bracket when contributing, the larger the refund. Ideally, withdraw in retirement at a lower bracket.
RRSP Milestones by Age
On-track benchmarks (assuming ~$65,000 median household income):
Age
On-Track RRSP Balance
# × Annual Salary
25
$10,000
0.15×
30
$40,000
0.6×
35
$90,000
1.4×
40
$155,000
2.4×
45
$240,000
3.7×
50
$345,000
5.3×
55
$475,000
7.3×
60
$550,000
8.5×
65
$650,000
10×
RRSP vs TFSA: Where to Contribute
Factor
RRSP
TFSA
Tax deduction on contribution
Yes
No
Tax on withdrawal
Yes (taxed as income)
No
Best for income over $55K
✅ (higher refund now, lower tax later)
Good
Best for income under $55K
Good
✅ (lower bracket = smaller RRSP benefit)
Contribution room
18% of income, max ~$33K
$7,000/year (2024-2025)
Affects GIS/OAS in retirement
Yes (withdrawals count as income)
No
Home Buyers’ Plan eligible
Yes ($60,000 limit)
No (but FHSA exists)
Spousal contribution
Yes
No
How to Catch Up If Behind
Current Age
Years to 65
Priority Actions
30s
30+ years
Maximize employer match, contribute 10-15% of income, focus on growth investments
40s
20+ years
Use accumulated contribution room, consider spousal RRSP, increase to 15-20%
50s
10-15 years
Max contributions, use all carry-forward room, shift to balanced portfolio
60s
Under 5 years
Evaluate RRSP vs. TFSA, plan RRIF conversion, consider delaying CPP
Monthly Savings Needed to Reach $550,000 by 65
Current Age
Current RRSP
Monthly Contribution Needed
25
$0
$450
30
$15,000
$530
35
$30,000
$650
40
$60,000
$800
45
$90,000
$1,050
50
$120,000
$1,500
55
$150,000
$2,600
Assumes 6% average annual return before fees.
RRSP Conversion to RRIF
Rule
Details
Conversion deadline
December 31 of the year you turn 71
Options at conversion
Convert to RRIF, purchase annuity, or withdraw lump sum
Minimum RRIF withdrawal (age 72)
5.28% of balance
Minimum RRIF withdrawal (age 80)
6.82% of balance
Minimum RRIF withdrawal (age 90)
11.92% of balance
Key Takeaways
The median Canadian RRSP balance at age 55-59 is just $95,000 — well below the $420,000+ recommended target
Most Canadians are significantly behind — fewer than 1 in 5 are on track for a comfortable retirement from RRSPs alone
CPP and OAS provide $20,000-$30,000/year — substantial, but not enough for most lifestyles
Contribute at least 10-15% of income — the tax deduction makes it cheaper than you think at marginal rates above 30%
Use carry-forward room aggressively in your peak earning years when your tax bracket is highest
The RRSP vs. TFSA decision depends on income — TFSA savings are better below ~$55K; RRSP is better above
