The average retirement savings for Canadians is close to $272,000 while the average RRSP balance stands at $129,000 in 2024.
The eventual goal of retirement planning is to save enough to lead a comfortable life. So, how much money do you need to retire today? Most Canadians believe they need at least $1 million to retire comfortably. Given that the average retirement savings for Canadians above the age of 65 is $272,000, it’s evident that the average Canadian household might not have enough retirement reserves.
Notably, the average 65-year-old has $129,000 saved in the RRSP (Registered Retirement Savings Account), while the average TFSA (Tax-Free Savings Account) balance is even lower at $41,000.
Is the average retirement savings enough?
If the interest rates on GICs fall to 4%, an investment of $272,000 in these products will help you earn less than $11,000 in annual interest income. If we include the average annual Canada Pension Plan (CPP) payout of $9,798, the total income might be close to $20,500 or $1,708 monthly.
If we exclude rental costs, an individual would spend around $1,500 monthly in major cities such as Toronto and Vancouver. This suggests that $272,000 in retirement savings would cover basic expenses.
