Is the Average TFSA and RRSP Enough at Age 65?

For many Canadians approaching 65, the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) balances often feel smaller than expected. Life happens, with mortgages, kids, career changes, caregiving, and stretches of lower income usually taking priority over maxing out registered accounts. By retirement age, a lot of people look at their savings and realize they did “okay,” but not great, and wonder whether it will truly support the lifestyle they want for the next 25 to 30 years.

Where do you fall?

Across Canada, the average RRSP balance for a 65-year-old is often estimated around $180,000 to $250,000. Meanwhile, the average TFSA balance sits closer to $90,000 to $120,000. These figures vary widely depending on income history, employment pensions, and contribution habits. However, they paint a clear picture. Most Canadians are not sitting on million-dollar registered portfolios at retirement. When combined, the average total registered savings for a 65-year-old frequently lands in the $270,000 to $370,000 range. That can sound substantial, but when spread across decades of retirement, it can feel surprisingly tight.

For many Canadians, the honest answer is this isn’t enough to live comfortably, especially with longer life expectancy and rising costs. Even with the Canada Pension Plan (CPP) and Old Age Security (OAS), retirees relying on modest RRSP and TFSA balances may struggle to maintain their pre-retirement lifestyle. That is, unless investments continue working hard. The good news is that at 65, it’s not too late to improve outcomes. TFSAs remain incredibly powerful because withdrawals don’t affect government benefits, and RRSPs can still be strategically converted to Registered Retirement Income Funds (RRIF) to generate steady income.

What Canadians need to know is that “catch-up mode” at 65 looks different than it did at 45. The goal shifts from chasing big gains to preserving capital, earning reliable income, and smoothing returns. That way market swings don’t derail retirement plans. That’s where balanced and income-focused ETFs can quietly do a lot of heavy lifting. Instead of trying to outsmart the market late in the game, many retirees are better served by owning broad, diversified exchange traded funds (ETF) that generate income, reduce risk, and allow savings to compound steadily for the rest of their lives.

Consider this ETF

The BMO Balanced ETF (TSX:ZBAL) is a simple, one-ticket solution that holds a diversified mix of global stocks and bonds, typically around a 60/40 split. It’s designed for investors who want growth and income without needing to rebalance or manage multiple holdings. Performance has historically been smoother than pure equity ETFs. This matters enormously at 65 when protecting capital becomes just as important as growing it. ZBAL offers exposure to Canadian, U.S., and international equities alongside high-quality bonds, making it a strong “sleep-at-night” option for retirees catching up.

From there, BMO Aggregate Bond Index ETF (TSX:ZAG) focuses purely on bonds, holding a broad mix of Canadian government and investment-grade corporate debt. While it won’t deliver eye-popping returns, it plays a crucial role in stabilizing a portfolio and generating steady income. For retirees who worry about market volatility, ZAG helps dampen portfolio swings while still providing a yield that can support withdrawals. In a world where guaranteed investment certificate (GIC) rates are falling, a diversified bond ETF offers flexibility, liquidity, and income without locking money away.

Meanwhile, the iShares S&P/TSX Canadian Dividend Aristocrats ETF (TSX:CDZ) targets companies with long histories of dividend growth, offering retirees income that has a built-in inflation hedge. These are mature, cash-generating businesses that have raised dividends through multiple economic cycles. CDZ has historically delivered a blend of income and modest growth. This makes it ideal for investors who need their portfolio to keep paying them more over time.

Bottom line

For Canadians at 65 looking to catch up, combining funds like ZBAL for balance, ZAG for stability, and CDZ for growing income can create a resilient, low-stress portfolio that continues working well into retirement. And right now, here’s what $50,000 in each stock could bring in.

Together, these provide investors with strong income they can use not just at 65, but for the rest of their retirement life.