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Am I Saving Enough for Retirement in Canada? Benchmarks and How to Catch Up

Updated

Whether you are saving enough for retirement depends on your age, income, pension, housing and the retirement you want, so no single number answers it. This page covers the common benchmarks and where they come from, what government benefits cover, what being behind looks like, and the ways people catch up. It is part of the retirement planning hub.

Quick self-check

QuestionUsually a good signUsually a warning sign
Are you saving consistently?Automatic contributions every paySaving only occasionally
High-interest debtPaid off or shrinkingCarrying credit card balances
Registered accountsUsing TFSA and/or RRSP roomLong-term money sitting in cash
Retirement targetA rough budget and retirement ageNo estimate of future needs

Savings-rate and age benchmarks

The best-known benchmark comes from Fidelity Investments, a US firm. It assumes saving 15% of income a year from age 25, retiring at 67, and savings replacing 45% of pre-retirement income (on top of US Social Security). Its age milestones:

AgeFidelity’s savings target (multiple of salary)
301x
403x
506x
608x
6710x

Source: Fidelity Investments, How much do I need to retire?

These are rough guides built on US assumptions. A defined-benefit pension lowers what you need to save yourself; retiring early, renting in retirement or planning a costly lifestyle raises it. For how Canadians actually compare, see net worth by age in Canada and average RRSP balance by age.

What CPP and OAS can cover

Government benefits are part of the plan and reduce how much your own savings must provide:

BenefitYearly amount
CPP retirement pension, average for a new pension (July 2026)$10,300
CPP retirement pension, maximum at 65 (starting in January 2026)$18,092
OAS pension, maximum at 65 to 74 (October to December 2026)$9,150
OAS pension, maximum if deferred to 70 (October to December 2026)$12,444

How much of your pre-retirement income these replace depends on your earnings: they cover a larger share for lower earners, and personal savings matter more the higher your income. The retirement income floor page adds up what the public programs pay together.

How much retirement income do you need?

The most useful target is your own expected retirement spending, not a percentage of salary: some costs fall away (payroll deductions, commuting, a paid-off mortgage) and others can rise (travel, health care). How much you need to retire walks through the calculation.

For example, if you assume you will need 70% of your current gross income:

Current gross income70% of it
$60,000$42,000
$80,000$56,000
$100,000$70,000

How much is that a month?

Saving a share of gross income, per month:

Gross income10%15%20%
$60,000$500$750$1,000
$80,000$667$1,000$1,333
$100,000$833$1,250$1,667

The retirement calculator projects where a given monthly amount could take you, and how much to invest per month looks at it from the other side.

What being behind looks like

Being behind is measured against your own target, not against other people. Four questions frame it:

  1. What do you spend now, and what would you spend in retirement?
  2. How much of that will CPP, OAS and any pension cover?
  3. How much do your savings need to provide each year?
  4. Are your current contributions on track to get there?

Ways people can fall behind include starting late because of student debt or housing costs, putting everything into the mortgage, using TFSA room mainly for short-term goals, and counting on future raises to make up the difference.

Ways people catch up

  • Using registered room. Unused TFSA room carries forward (the limit is $7,000 for 2026), and RRSP room is 18% of the previous year’s earned income up to $33,810 for 2026, less any pension adjustment from a workplace plan, with unused room carried forward (your Notice of Assessment shows it). RRSP vs TFSA compares them.
  • Employer matching. A workplace plan that matches contributions adds money you would otherwise leave behind.
  • Paying off high-interest debt, which frees cash flow for saving.
  • Saving part of each raise or bonus, so savings grow without cutting current spending.
  • Working a few years longer, which adds saving years, shortens the years savings must cover, and can mean larger CPP and OAS if you delay them.
For example, adding $300 a month from age 45 to 65 (240 months) at an assumed 7% a year grows to about $156,278, and $500 a month to about $260,463. Returns aren’t guaranteed and vary from year to year.
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Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.