For many Canadians, the combined value of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) at age 65 isn’t as large as most people expect when they first start saving. While both accounts are powerful for tax-efficient growth and income, average balances in these vehicles tend to be modest for those nearing or entering retirement. That reality leaves many retirees questioning whether their savings will truly support a comfortable lifestyle throughout their later years.
Typical figures for Canadians around age 65 show that the average RRSP balance sits in a range that often falls between lower to moderate six figures, and the average TFSA balance adds a smaller but meaningful amount on top. When you combine the two, total registered savings for the typical retiree frequently land somewhere in the mid-to-upper hundreds of thousands of dollars, rather than in the high six or seven figures that many financial planners recommend.
This sum can seem substantial, but when it’s expected to last for decades — especially with rising healthcare, housing, and general living costs — it often doesn’t stretch as far as retirees hope. Government income sources like the Canada Pension Plan (CPP) and Old Age Security (OAS) help, but on their own they typically cover only basic needs and rarely support a pre-retirement lifestyle without supplemental savings.
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One of the reasons average balances remain relatively modest is that many people don’t consistently maximize contributions throughout their careers. Priorities like paying down a mortgage, raising children, or dealing with career changes often take precedence, leaving less room to aggressively fund retirement accounts. Additionally, a shift in savings strategy is usually needed once you reach age 65 — the emphasis moves from chasing high growth to protecting capital, generating reliable income, and smoothing returns to reduce the impact of market volatility.
For many retirees, the solution isn’t simply accepting modest savings but structuring what they do have more strategically. That can mean holding diversified, income-focused investments inside both TFSA and RRSP that provide steady distributions while limiting downside risk. Rather than relying on cash or low-yield holdings, a balanced mix of equities and fixed income can help extend the effective life of savings.
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The bottom line is that while the average TFSA and RRSP total at age 65 provides a base, it often isn’t enough on its own to ensure financial comfort in retirement. Careful planning, strategic investing, and perhaps continued contributions where possible can improve outcomes and help turn modest registered balances into a more dependable retirement income stream.
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