This is the first article in a series of blogs containing information about the landscape of retirement readiness for the average Canadian citizen in 2024-2025. In 2025, Canadians are presented with a complex financial market place marked by both progress and significant challenges.
While overall retirement confidence has seen a slight upward trend, a substantial portion of the population, particularly single individuals and younger demographics, express considerable concern about their ability to retire comfortably, if at all. Rising costs of living and the weight of household debt are major contributing factors, impacting the capacity of many Canadians to save adequately for their future.
Disparities in preparedness are evident across different demographic groups, with women and those without workplace pensions facing heightened vulnerabilities.
Public pension benefits, while providing a crucial foundation, are generally not projected to be sufficient to meet the retirement income needs of most average earners, underscoring the importance of personal savings and effective financial planning.
These monthly blogs will delve into the critical aspects of retirement, analyzing recent surveys and data to provide a comprehensive assessment of the current state of Canadian retirement readiness and highlight key areas requiring attention and potential intervention.
The Current State of Retirement Savings in Canada
An examination of the retirement savings landscape in Canada reveals a considerable divergence between average and median figures, indicating an uneven distribution of wealth accumulation for retirement.
Data from a June 2024 report indicates that while the average retirement savings for Canadians over 65 stands at approximately $319,000, the median savings for the same age group is significantly lower at $200,000. This pattern holds true across all age cohorts.
For instance, Canadians under 35 years old have an average savings of around $49,130, but the median is only $18,880. Similarly, for those aged 55 to 64, the average savings reaches $537,560, while the median is $185,000.
This consistent gap between the average and median savings across all age brackets suggests that a relatively smaller segment of high-net-worth individuals significantly inflates the average, while a substantial portion of Canadians possess savings closer to the median, which may be insufficient for a secure retirement.
Further insights into the composition of retirement savings can be gleaned from 2023 data, which provides a breakdown of median savings across various investment vehicles.
For individuals in the 55-64 age group, the median amount held in Registered Retirement Savings Plans (RRSPs) is $120,000, and the median in employer-sponsored registered pension plans is $335,500.
The median net worth for this pre-retirement cohort is reported as $873,400. This breakdown illustrates the importance of employer-sponsored pension plans in accumulating retirement wealth for many Canadians nearing retirement.
While RRSPs also contribute, the median balance in these accounts is considerably lower. The median net worth figure provides a broader view of household wealth, encompassing assets beyond dedicated retirement accounts, such as real estate and other investments. However, it is important to note that not all components of net worth are readily accessible as retirement income.
Adding to the concern regarding the adequacy of savings for those nearing retirement, a 2024 survey highlights that among Canadians aged 55 to 64, a significant 39% have accumulated less than $5,000 in savings, and 73% have total savings of $100,000 or less.
These figures paint a concerning picture for a substantial portion of the population approaching their retirement years. With such limited savings outside of potential public pension benefits, many individuals in this age group may face significant financial challenges in maintaining their living standards once they stop working, especially in light of increasing costs of living.
| Age Group | Median RRSPs (2023) | Median Employer-Sponsored Registered Pension Plans (2023) | Median Net Worth (2023) |
| Under 35 years | $15,000 | $29,700 | $159,100 |
| 35 to 44 years | $33,000 | $94,800 | $409,300 |
| 45 to 54 years | $72,600 | $216,800 | $675,800 |
| 55 to 64 years | $120,000 | $335,500 | $873,400 |
| 65 years and older | $102,200 | $231,300 | $738,900 |
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