Retirement Savings Milestones Canada 2025

Are you on track? The savings benchmarks Canadians should hit at every decade — and how to catch up if you've fallen behind.

The Standard Retirement Savings Milestones

Financial planners use multiples of your annual salary as age-based benchmarks. These are widely used by Fidelity, Vanguard, and Canadian financial advisors as a quick "on-track" check:

Age	Savings Target	Example: $70,000 Salary	Example: $100,000 Salary
30	1x salary	$70,000	$100,000
35	2x salary	$140,000	$200,000
40	3x salary	$210,000	$300,000
45	4x salary	$280,000	$400,000
50	6x salary	$420,000	$600,000
55	7x salary	$490,000	$700,000
60	8x salary	$560,000	$800,000
65	10x salary	$700,000	$1,000,000

Reality Check: Where Are Most Canadians?

Fidelity Canada's 2023 retirement report found the average Canadian retires with approximately $184,000 in savings. This is well below the 10x benchmark for most income levels and highlights a significant retirement savings gap across the country. Many Canadians, however, also have defined benefit pensions or home equity that isn't captured in these numbers.

The Savings Rate That Gets You There

Starting at age 25 and targeting retirement at 65, saving 15% of gross income annually (including any employer contributions) invested in a diversified portfolio earning 6% nominal return will typically meet the 10x milestone at retirement. Starting later requires higher savings rates:

Start Age	Required Savings Rate (to reach 10x at 65)
25	~15% of income
30	~18% of income
35	~22% of income
40	~28% of income
45	~37% of income

Catching Up: Strategies for Late Starters

If you're behind on these milestones, you have real options:

• Maximize RRSP and TFSA contributions simultaneously — use catch-up contribution room that has accumulated
• Downsize housing earlier — unlocking home equity for retirement savings
• Delay retirement by 2–3 years — dramatically improves sustainability (more savings, fewer years drawing down, higher CPP)
• Reduce expected spending — retiring on less is more achievable than most people think with lifestyle adjustments
• Generate part-time income — even $100–$20,000/year in semi-retirement materially extends portfolio longevity

Don't Forget Non-Savings Assets

The salary-multiple benchmarks focus on financial savings (RRSP, TFSA, pensions). For homeowners, the equity in a primary residence can serve as an additional retirement buffer — through downsizing, a reverse mortgage, or renting a suite. A defined benefit pension with a commuted value of $400,000 is also equivalent to having $400,000 in savings, even though it doesn't appear as a liquid account balance.