CPP, OAS, and GIS: Maximize your public retirement benefits with our CPP, OAS, and GIS Guide.
For full benefit timing, clawback planning, and retirement income sequencing, see the CPP and OAS hub.
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.
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
- See our CPP guide and FHSA calculator for more retirement and first-home planning tools
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