A piggy bank with Canadian money

Saving money is a crucial aspect of financial well-being, but the path to building a robust savings account can look quite different depending on your age and life stage. For Canadians, understanding the average savings by age can provide valuable insights into how their own financial journey compares to others and help them set realistic goals for the future.

While everyone’s circumstances are unique, there are common milestones and challenges that many people face at different stages of life, from paying off student loans in their 20s to preparing for retirement in their 50s and 60s. By examining these patterns and the factors that influence them, we can gain a clearer picture of what it takes to achieve financial security and independence over the long term.

Whether you’re just starting out in your career or nearing the end of your working years, it’s never too early or too late to take control of your finances and work towards building a solid savings foundation. So, let’s explore the average savings by age in Canada and uncover strategies for boosting your savings at every stage of life.

1. How Much Should You Save At Each Life Stage?

Saving money is a lifelong journey, and the amount you should save varies depending on your age and life stage. As you move through different phases of life, your financial priorities, goals, and responsibilities evolve. Let’s explore how much you should aim to save at each stage of life, from your 20s to your 60s.

1.1. Saving In Your 20s

1.1.1. Building A Budget And Paying Down Debt

In your 20s, your primary focus should be on establishing a solid financial foundation. Start by creating a budget to track your income and expenses. Identify areas where you can cut back on spending and allocate more money towards paying off any high-interest debt, such as credit card balances or student loans.

1.1.2. Starting Your Savings Journey

Once you have a handle on your debt, begin building your savings. Aim to save at least 10-15% of your income. Open a high-yield savings account and set up automatic transfers from your checking account to make saving a habit. Begin contributing to a retirement account, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), to take advantage of compound interest and tax benefits.

1.2. Saving In Your 30s

1.2.1. Increasing Your Savings Rate

As you enter your 30s, your income likely increases, and you may have more stability in your career. Take this opportunity to boost your savings rate to 15-20% of your income. Continue contributing to your retirement accounts and consider increasing your contributions each year, especially if your employer offers a matching program.

1.2.2. Setting Up An Emergency Fund

Building an emergency fund is crucial in your 30s. Aim to save 3-6 months’ worth of living expenses in a separate savings account. This fund will provide a safety net in case of unexpected events like job loss, medical emergencies, or major home repairs.

1.2.3. Saving For Your First Property

If you plan to purchase a home, start saving for a down payment in your 30s. Consider opening a dedicated savings account and set a goal based on your desired home price and down payment percentage. Research first-time homebuyer programs and tax credits that can help you save money.

1.3. Saving In Your 40s

1.3.1. Bringing Retirement Into Focus

In your 40s, retirement planning becomes more critical. Assess your current retirement savings and determine if you are on track to meet your goals. If you’re falling behind, consider increasing your contributions or exploring additional investment options, such as a Registered Retirement Income Fund (RRIF) or a Locked-In Retirement Account (LIRA).

1.3.2. Balancing Savings And Debt Repayment

Your 40s may come with increased financial responsibilities, such as a mortgage or children’s education costs. Balance your savings goals with debt repayment. Prioritize paying off high-interest debt while still contributing to your retirement and emergency funds.

1.3.3. Saving For Your Children’s Education (RESPs)

If you have children, consider opening a Registered Education Savings Plan (RESP) to save for their future education costs. The government offers grants and tax benefits to help you save more. Start contributing early to maximize the benefits of compound interest.

1.4. Saving In Your 50s

1.4.1. Catching Up On Your Savings Goals

If you’ve fallen behind on your savings goals, your 50s are an opportunity to catch up. Take advantage of higher contribution limits for retirement accounts and consider making additional catch-up contributions if you’re eligible. Reassess your budget and look for ways to reduce expenses and allocate more money towards savings.

1.4.2. Maximizing Your Retirement Contributions

As you approach retirement, maximize your contributions to your retirement accounts. Take full advantage of any employer matching programs and consider contributing to a spousal RRSP if you have a partner with lower income. Review your investment portfolio and adjust your asset allocation to align with your risk tolerance and retirement timeline.

1.5. Saving In Your 60s

1.5.1. Preparing For Retirement

In your 60s, your focus shifts to preparing for retirement. Assess your retirement income sources, including government pensions (CPP/QPP, OAS), employer-sponsored pension plans, and personal savings (RRSPs, TFSAs). Determine if you have enough saved to support your desired retirement lifestyle and make adjustments if necessary.

1.5.2. Adjusting Your Portfolio For Income

As you near retirement, consider adjusting your investment portfolio to generate income. This may involve shifting a portion of your assets into more conservative investments, such as bonds or dividend-paying stocks, to provide a steady stream of income. Consult with a financial advisor to develop a retirement income strategy that meets your needs and goals.

2. Average Savings And Net Worth By Age In Canada

Understanding the average savings and net worth by age in Canada can provide valuable insights into how Canadians are managing their finances at different life stages. While these figures serve as a general benchmark, it’s essential to remember that individual circumstances can vary greatly. Let’s take a closer look at the average savings and net worth for various age groups in Canada.

2.1. Average Savings For Canadians Under 35

According to a 2019 report by Statistics Canada, the median net worth for Canadians under 35 years old is $48,800. This figure includes savings, investments, and other assets. At this age, many individuals are focused on paying off student loans, establishing their careers, and building an emergency fund.

2.2. Average Savings For Canadians Aged 35-44

For Canadians aged 35 to 44, the median net worth increases to $234,400. This age group is typically more established in their careers and may be focusing on saving for a down payment on a home, starting a family, and increasing their retirement contributions.

2.3. Average Savings For Canadians Aged 45-54

Canadians aged 45 to 54 have a median net worth of $521,100. At this stage, many individuals are in their peak earning years and may be prioritizing saving for their children’s education, paying off their mortgage, and maximizing their retirement savings.

2.4. Average Savings For Canadians Aged 55-64

For Canadians aged 55 to 64, the median net worth reaches $690,000. This age group is often focused on preparing for retirement, which may include increasing their savings, paying off any remaining debt, and adjusting their investment portfolio to align with their retirement goals.

2.5. Average Savings For Canadians 65+

Canadians aged 65 and older have a median net worth of $543,200. While this figure is lower than the previous age group, it’s important to note that many individuals in this age range are drawing from their savings and investments to fund their retirement lifestyle.

2.6. Factors Affecting Savings And Net Worth

Several factors can influence an individual’s savings and net worth, regardless of age. Understanding these factors can help Canadians make informed financial decisions and work towards their savings goals.

2.6.1. Income Level And Employment Status

An individual’s income level and employment status can significantly impact their ability to save and build wealth. Higher-income earners generally have more disposable income to allocate towards savings and investments, while those with lower incomes may face challenges in meeting their basic needs while also saving for the future.

2.6.2. Homeownership Vs. Renting

Homeownership can play a significant role in building net worth over time. As homeowners pay down their mortgage, they build equity in their property, which can contribute to their overall net worth. Renters, on the other hand, do not have this opportunity to build equity through their monthly housing payments.

2.6.3. Family Structure (Single, Married, With/Without Children)

Family structure can also impact an individual’s savings and net worth. Dual-income households may have more opportunities to save and invest, while single-income households or those with children may face additional financial pressures that can make saving more challenging.

2.6.4. Access To Employer Pension Plans

Access to employer-sponsored pension plans can significantly boost an individual’s retirement savings. Defined benefit pension plans provide a guaranteed income in retirement, while defined contribution plans allow employees to save and invest for retirement with the added benefit of employer contributions. Those without access to such plans may need to rely more heavily on personal savings and investments to fund their retirement.

3. How To Boost Your Savings At Any Age

Regardless of your age or financial situation, there are always steps you can take to improve your savings and work towards your financial goals. By implementing smart strategies and making informed decisions, you can boost your savings and set yourself up for a more secure financial future. Here are some effective ways to increase your savings at any age.

3.1. Creating And Sticking To A Budget

One of the most fundamental steps in boosting your savings is creating a budget and sticking to it. A well-designed budget helps you track your income and expenses, identify areas where you can cut back, and allocate more money towards savings and investments. Start by listing your monthly income and all your expenses, then look for opportunities to reduce non-essential spending and redirect that money towards your savings goals.

3.2. Automating Your Savings And Investments

Automating your savings and investments can help you stay consistent and avoid the temptation to spend money that you intended to save. Set up automatic transfers from your checking account to your savings or investment accounts each month. This way, you’ll be saving money without having to think about it, and you’ll be less likely to miss the funds that are being set aside.

3.3. Taking Advantage Of Employer Matching Programs

If your employer offers a matching program for retirement contributions, such as a group RRSP or pension plan, be sure to take full advantage of it. Employer matching is essentially free money that can significantly boost your retirement savings over time. Aim to contribute at least enough to receive the full employer match, and increase your contributions whenever possible.

3.4. Maximizing Your Tax-Advantaged Accounts (TFSA, RRSP)

Tax-advantaged accounts, such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), offer unique benefits that can help you save more money and reduce your tax burden. TFSAs allow you to save and invest money without paying taxes on the investment income or capital gains, while RRSPs provide tax deductions on contributions and tax-deferred growth on investments. By maximizing your contributions to these accounts each year, you can accelerate your savings and take advantage of valuable tax benefits.

3.5. Seeking Professional Financial Advice

Working with a qualified financial advisor can be an excellent way to boost your savings and make informed decisions about your money. A financial advisor can help you create a personalized savings plan, identify areas where you can optimize your finances, and provide guidance on investing and retirement planning. They can also help you navigate complex financial situations and make the most of your resources at every stage of life.

By seeking professional advice, you can gain valuable insights and strategies that can help you reach your savings goals more efficiently and effectively. Whether you’re just starting to save or looking to fine-tune your existing financial plan, working with a financial advisor can be a smart investment in your future.

4. What Is The Average Retirement Income In Canada?

Understanding the average retirement income in Canada is crucial for planning your own retirement and ensuring that you have sufficient funds to maintain your desired lifestyle. Retirement income can come from various sources, and the amount you receive may depend on factors such as your pre-retirement income, savings, and the province you reside in. Let’s explore the average retirement income in Canada and the factors that influence it.

4.1. Sources Of Retirement Income

Canadians typically rely on a combination of government pensions, employer-sponsored pension plans, and personal savings to fund their retirement. Each of these sources plays a unique role in providing financial support during your golden years.

4.1.1. Government Pensions (CPP/QPP, OAS, GIS)

Government pensions, such as the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS), form the foundation of retirement income for many Canadians. CPP/QPP are contributory plans that provide benefits based on your working income and years of contributions, while OAS and GIS are non-contributory and provide additional support for low-income seniors.

4.1.2. Employer-Sponsored Pension Plans

Employer-sponsored pension plans, such as defined benefit or defined contribution plans, can significantly boost your retirement income. These plans are designed to provide a regular income stream in retirement, with contributions made by both the employer and the employee during the working years.

4.1.3. Personal Savings (RRSPs, TFSAs, Non-Registered Investments)

Personal savings, including Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and non-registered investments, play a crucial role in supplementing government and employer pensions. By regularly contributing to these accounts throughout your working life, you can build a substantial nest egg to support your retirement lifestyle.

4.2. Average Retirement Income By Province

The average retirement income in Canada varies by province, reflecting differences in cost of living, economic conditions, and retirement savings patterns. According to recent data, retirees in Ontario and British Columbia tend to have higher average incomes, while those in the Atlantic provinces and Quebec generally have lower retirement incomes.

4.3. Factors Affecting Retirement Income

Several key factors can influence your retirement income, including your pre-retirement income and savings, the age at which you retire, and your lifestyle and spending habits in retirement.

4.3.1. Pre-Retirement Income And Savings

Your income and savings during your working years are strong predictors of your retirement income. Higher earners tend to have more opportunities to save and invest for retirement, which can translate into a larger nest egg and higher retirement income.

4.3.2. Retirement Age And Life Expectancy

The age at which you choose to retire can significantly impact your retirement income. Delaying retirement can allow you to accumulate more savings, earn additional pension credits, and reduce the number of years you’ll need to rely on your retirement income. Additionally, life expectancy plays a role in determining how long your retirement savings need to last.

4.3.3. Lifestyle And Spending Habits In Retirement

Your lifestyle and spending habits in retirement will directly affect how far your retirement income stretches. Retirees who maintain a more frugal lifestyle or have lower living costs may find that their retirement income goes further, while those with more extravagant tastes or higher expenses may need to save more to maintain their desired standard of living.

By understanding the average retirement income in Canada and the factors that influence it, you can better plan for your own retirement and take steps to ensure a financially secure future. Whether through government pensions, employer-sponsored plans, or personal savings, a well-rounded retirement income strategy can help you achieve your goals and enjoy a comfortable retirement.

5. Frequently Asked Questions

  • How much should I have saved for retirement by age 30, 40, 50, 60?

While retirement savings goals vary based on individual circumstances, a general rule of thumb is to aim for saving 1-2 times your annual salary by age 30, 3-4 times by 40, 6-7 times by 50, and 8-10 times by 60. However, these are just guidelines, and it’s essential to consider your unique financial situation and retirement aspirations when setting savings targets.

  • What is a good retirement savings goal?

A good retirement savings goal is one that allows you to maintain your desired lifestyle throughout retirement. Experts often suggest aiming to replace 70-80% of your pre-retirement income. To determine your specific goal, consider factors such as your expected expenses, desired retirement age, life expectancy, and potential sources of income (e.g., government pensions, employer-sponsored plans).

  • How can I catch up on my retirement savings if I’m behind?

If you’re behind on your retirement savings, there are several strategies you can employ to catch up. First, take advantage of catch-up contributions to your RRSP or TFSA if you’re eligible. Second, consider increasing your savings rate by cutting expenses or boosting your income. Third, explore the possibility of delaying your retirement to give yourself more time to save and benefit from potential government pension increases.

  • Should I prioritize paying off debt or saving for retirement?

The answer to this question depends on your specific financial situation. Generally, it’s advisable to strike a balance between paying off high-interest debt (e.g., credit card balances) and saving for retirement. If your debt has a lower interest rate than the expected return on your retirement investments, it may be more beneficial to prioritize saving. However, if you have significant high-interest debt, focusing on paying it off first can help you save more in the long run.

  • What is the average Canadian retirement income, and is it enough to live comfortably?

According to recent data, the average retirement income in Canada varies by province, with retirees in Ontario and British Columbia generally having higher incomes than those in the Atlantic provinces and Quebec. The average Canadian retiree receives income from a combination of government pensions (CPP/QPP, OAS, GIS), employer-sponsored pension plans, and personal savings (RRSPs, TFSAs, non-registered investments).

Whether the average retirement income is enough to live comfortably depends on individual lifestyle expectations and expenses. For some retirees, the average income may be sufficient, while others may require additional savings or income sources to maintain their desired standard of living. It’s crucial to assess your unique needs and create a personalized retirement plan to ensure you have enough income to support your goals.


Understanding the average savings by age in Canada provides a valuable benchmark for individuals to assess their own financial progress and set realistic goals for the future. While everyone’s journey is unique, the key to building a solid savings foundation lies in starting early, setting clear targets, and consistently contributing to savings and investment accounts.

By examining the factors that influence savings at different life stages and exploring strategies to boost your savings rate, you can take control of your financial well-being and work towards a comfortable retirement. Remember, it’s never too late to start making positive changes to your financial habits and taking proactive steps to improve your savings and retirement readiness. Regularly assessing your financial situation, adjusting your plan as needed, and seeking professional advice when necessary can help you stay on track and achieve your long-term financial goals.

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