Most 30-year-old Canadians have saved about $22,000. By 40, that jumps to $71,000, and by 50, it's around $169,000. But many of us save less than this because life is expensive and debt keeps growing.
What you save now affects everything from buying a home to retiring comfortably. Most Canadians will need over $1 million to stop working without worrying about money.
I'll break down what Canadians typically save at different ages, which savings accounts make sense for you right now, and some real-world tips to help you save more.
How much Canadians save at different ages
Here's what Canadians typically have in savings, not counting pensions or homes:
Under 35: $27,425
35 to 44: $23,743
45 to 54: $39,831
And here's what they've tucked away in RRSPs:
Under 35: $9,905
35 to 44: $15,993
45 to 54: $41,998
By retirement, the average Canadian has saved about $272,000 in cash, according to Stats Canada.
Savings jumped during COVID, but mostly among richer Canadians. People with higher incomes made up about 40% of this increase because they didn't face as many job losses.
How to save at every age
Your savings goals shift as you get older. Here's what makes sense for your stage of life.
In your 20s
Save: 5-10% of your income
Making $45,000? Try to save about $4,500 a year. At $65,000, aim for $6,500.
Your 20s are perfect for building credit and tackling debt. Start an emergency fund, save for trips, and learn the basics of retirement investing.
Smart moves:
Use credit cards wisely to build your score
Open a retirement account, even with small amounts
In your 30s
Save: 15% of your income
As you earn more, save more. On a $65,000 salary, try for $9,750 in savings. Making $85,000? Aim for $12,750.
Your 30s bring bigger goals—maybe a wedding, house down payment, or kids. You might still have debt, while retirement gets a decade closer.
Smart moves:
Max out your RRSP if possible
Keep 3-6 months of expenses in emergency savings
Open specific accounts for your goals (FHSA, TFSA)
Start RESPs if you have kids
Avoid taking on unnecessary debt
In your 40s
Save: 20-30% of your income
Your 40s are typically your peak earning years. Save aggressively now, even with growing expenses.
You might want a bigger home or renovations. Your kids need education money. Your parents might need help. And retirement is just two decades away.
Smart moves:
Maximize RRSP contributions
Use TFSAs for extra retirement savings
Look at HISAs and GICs for shorter-term goals
Keep debt under control
In your 50s
Save: 15-20% of your income
You're earning well, but need to plan for the downshift ahead.
It's time to balance spending and saving while thinking about how you'll use your money in retirement. Can you really afford that cottage? What support will your parents need? Will you help your adult kids financially?
Smart moves:
Fund your Health Spending Account
Review your retirement investments
Think about RRSP to RRIF conversion
Talk to a tax pro about legacy planning
In your 60s and beyond
Save: 15% of your income
Now you'll start using your retirement savings while getting pension income.
Your 60s and 70s bring healthcare costs, housing decisions, and hopefully fun stuff like travel. Many people downsize to cut housing costs.
Long-term care gets expensive, so keep saving even on reduced income!
Smart moves:
Plan your RRIF withdrawals
Use your HSA for health costs
Get a seniors bank account for the perks
Keep saving for unexpected expenses
Stay debt-free and live within your means
Finalize your estate plans
How much should you have saved by 30?
Financial experts say you should have about one year's salary saved by 30.
The average 30-year-old Canadian makes around $46,900.
If you earn $50,000, here's how your $50,000 in savings might look:
Emergency fund: $10,500 (3 months of expenses in a HISA)
Retirement: $24,000 in RRSPs
House fund: $16,000 in an FHSA
Your situation might need adjusting—maybe a bigger emergency fund or more house savings if that's your priority.
Monthly savings targets
Try to save 10-20% of your monthly income.
On $3,500/month: Save $350-$700
On $4,500/month: Save $450-$900
On $6,000/month: Save $600-$1,200
Split your savings into:
5% for short-term goals
15% for retirement
If you earn $3,500 monthly and save 20%, that's $175 for short-term goals and $525 for retirement each month—adding up to $2,100 and $6,300 a year.
How much money do you need to retire in Canada?
The average retired Canadian has an income of $74,200, but your needs might differ.
What people think: A BMO survey found Canadians believe they need $1.7M to retire.
What experts say: TD Wealth advisors suggest budgeting 70% of your pre-retirement income.
Most Canadians retire at 64.4 and live to 81.7 years. Let's be optimistic and plan for 25 years of retirement.
Two ways to calculate your retirement number:
The 70% rule:
If you make $72,000 when you retire, you'd need about $50,400 yearly in retirement (70%).$50,400 × 25 years = $1.26M total.
Your formula: (70% × your final salary) × 25 years = Your retirement fund
The 4% rule:
This rule says you can withdraw 4% of your investments yearly without running out of money.If you need $50,000 a year, you'll need $1.25M saved ($50,000 ÷ 0.04).
Why saving is so hard in Canada right now
Inflation and economic uncertainty
Even though inflation has cooled, prices for basics like groceries and utilities have shot up in the last 5 years.
Childcare and healthcare costs can blow up your budget without warning.
With costs rising and uncertain government benefits, many Canadians feel saving is pointless and give up before they start.
Housing costs
Getting into the housing market remains extremely tough in 2025.
High prices and few available homes discourage people across Canada. Many provinces have hit record-high prices recently.
Saving a down payment feels impossible when wages aren't keeping up with inflation.
Stagnant wages
Pay hasn't kept pace with real living costs for most Canadians.
When your income stays flat while expenses rise, there's often nothing left to save.
Growing debt
Credit card debt in Canada is at a 17-year high, says Equifax Canada. Total consumer debt has hit $2.5 trillion.
Stats Canada reports Canadians now have $1.76 in debt for every $1 of disposable income.
Pressure to keep up appearances is enormous. Canadians take on huge debts just to stay afloat or keep up with neighbors—car loans, student loans, credit cards, and home equity lines.
With high-interest debts eating their income, many Canadians sacrifice saving to make debt payments.
Best ways to save money in Canada
These tools help your money grow faster:
High-Interest Savings Accounts (HISAs)
Simple accounts that earn more interest than regular savings accounts. Perfect for:
Emergency funds
Money you'll need in the next few years
Saving for a vacation or big purchase
Just park your cash here instead of a regular account and watch it grow a bit faster.
Tax-friendly accounts
FHSA (First Home Savings Account)
For first-time homebuyers. Combine the best features of TFSAs and RRSPs:
Tax deduction when you contribute
Tax-free withdrawals for your first home
TFSA (Tax-Free Savings Account)
Great for almost any savings goal:
Money grows tax-free
Withdraw anytime without tax penalties
Perfect for medium-term goals or extra retirement savings
RRSP (Registered Retirement Savings Plan)
Best for retirement:
Tax break when you contribute
Tax-free growth until retirement
Makes sense when you're in a higher tax bracket
No-fee chequing accounts
Why pay $15 a month for basic banking? That's $180 a year that could be growing instead.
Free accounts skip some perks like free cheques, but the savings add up fast.
Tax credits
Don't pay more tax than you need to. Look for credits for:
RRSP contributions
Disability expenses
First-time home buying
Home accessibility renovations
Medical expenses
These credits work especially well in years when you earn more.
Start where you are
Saving isn't about being perfect. It's about doing what you can right now.
Most Canadians save less than the experts recommend. That's real life. Bills, debt and surprise expenses get in the way.
But even small amounts add up. If you start with 5% of your income this year and bump it up 1% next year, you're on the right track.
The best time to start was 10 years ago. The second best time is today. Open that TFSA with $25 if that's what you have. Put an extra $20 toward your debt. Set up that automatic transfer of $50 to your emergency fund.
Every step counts, and they get easier as you go.
So forget the guilt about not saving enough. Just start where you are and keep moving forward.
About the author
Quan works as a Junior SEO Specialist, helping websites grow through organic search. He loves the world of finance and investing. When he’s not working, he stays active at the gym, trains Muay Thai, plays soccer, and goes swimming.
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