Canada’s household savings rate has increased since the pandemic but remains below internationally recommended benchmarks for most income groups. Understanding where you sit relative to your income peers — and what a healthy savings rate looks like at your income level — is the first step to improving it.
Canadian household savings rate over time
| Year | Household Savings Rate (% of Disposable Income) | Notes |
|---|---|---|
| 2017 | 3.3% | Pre-pandemic historic low |
| 2018 | 2.9% | Near-record low |
| 2019 | 2.5% | Pre-pandemic low |
| 2020 | 14.9%–28.2% | Pandemic peak (forced savings) |
| 2021 | 12.7% | Post-pandemic elevated saving |
| 2022 | 6.5% | Returning to trend |
| 2023 | 7.0% | Modest rebound |
| 2024 | 7.8% | Inflation-driven savings rebuild |
| 2025 | 7.2% (est.) | Moderate |
Source: Statistics Canada.
Canada’s savings rate historically trails countries like Germany (12–17%) and Australia (9–12%), but has outpaced the US (typically 3–7%) in most years since 2020.
Average savings rate by income in Canada
| Income Range (Gross, Individual) | Avg. Savings Rate | Median Annual Savings | Notes |
|---|---|---|---|
| Under $30,000 | 2–5% | $600–$1,500 | Essentially no discretionary savings; CPP only |
| $30,000–$50,000 | 4–8% | $1,200–$4,000 | TFSA contributions; limited RRSP room used |
| $50,000–$75,000 | 8–12% | $4,000–$9,000 | Growing RRSP use; down payment saving common |
| $75,000–$100,000 | 12–18% | $9,000–$18,000 | Maxing or near-maxing TFSA; RRSP growing |
| $100,000–$150,000 | 15–22% | $15,000–$33,000 | FHSA, RRSP, TFSA; investment accounts starting |
| $150,000+ | 20–35% | $30,000–$52,000+ | High savings potential; RRSP contribution room large |
Estimates based on Statistics Canada Survey of Financial Security and National Accounts data.
Recommended savings benchmarks by age and income
The following targets are based on saving enough to maintain your current lifestyle in retirement, alongside CPP and OAS:
| Age | Savings Rate Target | Context |
|---|---|---|
| 22–30 | 10–15% | Habit building; FHSA/TFSA first |
| 30–40 | 15–20% | Peak earning growth period; RRSP accelerating |
| 40–50 | 18–25% | Mortgage potentially reducing; savings can grow |
| 50–60 | 20–30% | Peak earnings; catch-up contributions |
| 60–65 | 15–25% | CPP/OAS starting to factor in; reduce if on track |
What “enough” looks like at retirement (age 65):
- CPP at average benefit: ~$9,000/year ($750/month)
- OAS at standard: ~$8,500/year ($700/month)
- Savings needed to make up the rest: depends on your target income
| Retirement Income Goal | CPP + OAS Provides | Savings Must Provide | Nest Egg Required |
|---|---|---|---|
| $40,000/year | ~$17,500 | ~$22,500 | ~$562,000 (at 4% withdrawal) |
| $55,000/year | ~$17,500 | ~$37,500 | ~$937,500 |
| $70,000/year | ~$17,500 | ~$52,500 | ~$1,312,000 |
| $90,000/year | ~$17,500 | ~$72,500 | ~$1,812,000 |
4% withdrawal rate assumes a balanced portfolio lasting 30 years.
How to calculate your own savings rate
Formula:
$$\text{Savings Rate} = \frac{\text{Annual Savings}}{\text{Gross Annual Income}} \times 100$$
What counts as savings:
- RRSP contributions
- TFSA contributions
- FHSA contributions
- Employer pension plan contributions (both your share and employer’s match)
- CPP employee contributions
- Cash deposited to non-registered investment accounts
- Extra mortgage principal payments (above required amortization)
- Emergency fund builds
What does NOT count as savings:
- Paying down credit card balances to zero each month (that’s just not going into debt)
- Buying a car (depreciating asset)
- Spending that was budgeted
Example calculation:
| Item | Annual Amount |
|---|---|
| RRSP contributions | $8,000 |
| TFSA contributions | $7,000 |
| CPP employee contributions | $4,200 |
| Employer pension match | $3,000 |
| Total savings | $22,200 |
| Gross income | $95,000 |
| Savings rate | 23.4% |
How to improve your savings rate by income level
| Income | Highest-Impact Action | Expected Rate Improvement |
|---|---|---|
| Under $40K | Auto-transfer $50–$100 to TFSA on payday | +2–4% |
| $40K–$60K | Take full employer RRSP match; switch to budget cell plan | +2–5% |
| $60K–$80K | Add FHSA (if first-time buyer); maximize TFSA before other spending | +3–6% |
| $80K–$120K | Maximize RRSP contribution to reduce marginal tax; redirect refund to TFSA | +4–8% |
| $120K+ | Maximize RRSP ($31,560 limit) + TFSA + FHSA; consider taxable account | +5–10% |
Savings rate vs. net worth growth by age
A savings rate tells you your flow. Net worth tells you your stock. Here is how they relate over time at a 15% savings rate on $70,000 income (investing returns ~5% / year):
| Age | Annual Savings | Cumulative Savings | Est. Portfolio Value |
|---|---|---|---|
| 25 | $10,500 | $10,500 | $10,500 |
| 30 | $10,500 | $52,500 | $65,000 |
| 35 | $10,500 | $105,000 | $150,000 |
| 40 | $10,500 | $157,500 | $275,000 |
| 45 | $10,500 | $210,000 | $450,000 |
| 50 | $10,500 | $262,500 | $685,000 |
| 55 | $10,500 | $315,000 | $1,000,000 |
| 65 | $10,500 | $420,000 | $1,750,000+ |
Growth compounds significantly in later decades when the existing portfolio is large.