Average RRSP Balance By Age: Are You Saving Enough?

The average Canadian’s RRSP dropped by over $30,000 in just one year, from 2022 to 2023. If you’re worried about your retirement savings, the good news is—it might not be as bad as it seems. Let’s dive into the numbers, and I’ll show you how you can use this RRSP data to your advantage.

RRSP Account Holdings: A National Snapshot

Table: Average RRSP Account Holdings Over Time

Let’s see how Canadians’ RRSP savings have fluctuated, especially over the past few years. While many were able to boost their savings during the pandemic, the most recent BMO survey shows a 28% decline in average RRSP account values, with the national average dropping to $113,070 in 2023, down from $144,613 in 2022.

This drop brings RRSP balances closer to historical averages, indicating that the elevated levels seen in 2021 and 2022 were likely temporary spikes caused by pandemic-related savings habits, when people were cutting expenses and contributing more to their retirement.

While this decline in 2023 might seem alarming at first, it actually reflects a return to more normal savings levels after the pandemic-induced boost in retirement savings. Canadians are still focused on their financial futures, but the rising cost of living and inflation are making it tougher to maintain those higher levels of contribution. 

Breakdown of RRSP Holdings by Age: Average vs. Median

I aimed to find recent median data for RRSPs since it offers a more realistic snapshot of what Canadians have saved. Medians are generally better indicators than averages, which can be skewed by high balances. I had to combine RRSP, RRIF, and LIRA data from Stats Canada’s latest available info (2019), as that was the data available. 

Key Takeaways:

1. Huge differences in median vs average – at age 65 and older, the median is well over double the average, at 224,000 vs 100,000. This means it is heavily skewed towards high-income outlier earners, so I would use the median for comparison to yourself. 
2. Younger Canadians Are Behind: Those under 35 have a median of just $12,500 saved, while the average is much higher at $41,000. This means many young adults have very little saved for retirement, and it’s crucial for them to start saving consistently as early as possible. I always like to say that saving for retirement can feel like going to the gym—it’s easy to skip, but you know you’ll regret it later! 
3. Midlife Savings Growth, but Still Lagging: In the 35 to 54 age range, savings improve, but the median of $30,000 to $70,000 is still far below what’s typically needed for a secure retirement. Many are juggling mortgages, family expenses, and careers, making it tough to prioritize retirement contributions. 
4. Nearing Retirement, but Not There Yet: For those aged 55 to 64, the median savings grow to $100,000. However, this isn’t necessarily enough to sustain retirement comfortably. Some individuals are in better shape with an average of $216,900, but many will still need to rely on additional income sources, like government benefits or personal investments. 
5. Retirees Still Dependent on Government Benefits: In the 65+ group, the median savings remain at $100,000, meaning many retirees will rely heavily on CPP, OAS, or other income streams. For most, private savings won’t cover everything.

Note on Economic Family Types:
This data includes both combined and individuals. Economic families tend to have higher savings due to shared financial responsibilities.

Regional Breakdown: Where RRSP Contributions Shine

Now, let’s zoom in on how different regions across Canada are handling their RRSPs. The 2023 survey gives us a fascinating regional breakdown, showing that not all provinces treat RRSPs the same way.

• Ontario led the pack with the highest average RRSP balance at $162,913.
• Meanwhile, Atlantic Canada boasted the highest average contribution at $8,115.

This regional variation shows how retirement strategies differ across the country. Some regions are all about building up big balances over time, while others are focusing on making significant contributions each year.

Table 3: Regional Breakdown of RRSP Account Holdings and Contributions (2022)

It’s clear that no matter where you are in Canada, people are staying engaged with their RRSPs, whether they’re building bigger account balances or making solid contributions year over year. 

RRSP Contributions by Household Size

Larger households tend to contribute more to their RRSPs, likely because they have more income to work with.

For example, two-person households lead the way, with 4.2 million households contributing to RRSPs, and a median contribution of $4,880. On the other hand, single-person households contribute significantly less overall, with a median of $3,560.

This pattern suggests that dual-income households are often better positioned to prioritize and grow their retirement savings. 

Table: RRSP Contributions by Household Size

Whether you’re in a smaller household or a larger one, this shows that financial planning—especially for retirement—often hinges on household dynamics and the resources you have to work with.

RRSP Contributions: Strong at Every Stage of Life

Despite inflation and rising costs, Canadians are prioritizing their RRSP contributions. In 2023, the average contribution grew to $6,512, up from $5,753 in 2022, showing a steady focus on retirement savings despite economic uncertainty.

Contributions vary by age, with those closer to retirement stepping up their savings. The 55 to 70 age group contributes a median of $5,480, while younger Canadians, like the 15 to 24 age group, contribute a median of $2,080, reflecting their earlier stage in life.

Takeaway: As Canadians get closer to retirement, they prioritize growing their savings. Whether starting small or making larger contributions later, the data shows a clear focus on long-term financial security. Even with economic challenges, RRSP contributions remain a priority for many.

Economic Challenges Impacting RRSP Savings

Saving for retirement hasn’t been smooth sailing lately, and the stats highlight just how much economic challenges—like inflation and rising interest rates—are impacting Canadians’ ability to set money aside for the future.

In 2023, a striking 74% of Canadians voiced concerns about how inflation and rising prices were affecting their finances.

By 2024, the outlook hadn’t brightened much. 63% of Canadians still reported that the current economic conditions were negatively affecting their ability to save for retirement. 

While these stats paint a tough picture, they also show the resilience of Canadians, who, despite the economic turbulence, are continuing to focus on their long-term retirement plans.

No matter your stage of life, regular RRSP contributions are essential for long-term security, even in challenging times. Whether you’re just starting out or approaching retirement, planning is key.

If you’re ready to take control of your retirement savings and maximize your RRSP potential, Blueprint is here to help. Check out our services on this website, and book a free consultation when you’re ready!