The Average RRSP at 40 Isn’t Enough: Here’s How to Boost it

If you feel behind at 40, you’re not alone, and you’re not doomed either. Knowing the average Registered Retirement Savings Plan (RRSP) balance gives you a baseline, not a verdict, and it can help you make smarter choices with every new contribution. Right now, the average RRSP balance for Canadians aged 35 to 44 is at about $49,014, which makes a decent proxy for “around 40.” The catch sits in the gap between average and typical. For example, the median RRSP balance for ages 35 to 44 is $33,000, which tells you many Canadians sit well below the average.

That’s why this number helps. It gives you a reality check and a target, and it pushes you toward a plan instead of a vibe. At 40, time still sits on your side, but it stops feeling endless. The goal isn’t to “beat” the average for bragging rights. The goal is to build a portfolio that can grow without you babysitting it, so your RRSP starts doing the heavy lifting while you live your life.

Consider CPKC

Canadian Pacific Kansas City (TSX:CP) can play that role as it owns a piece of North American trade that most companies can’t touch. It runs a major rail network that links Canada, the United States, and Mexico. Businesses need rail to move grain, autos, energy products, and shipping containers at scale. Competitors can’t simply build a new rail line beside it. That moat gives it long-term pricing power and steady demand, which matters when you want to buy and hold for years.

The stock has looked steady, not spectacular, which can actually suit long-term RRSP investors.While the broader TSX climbed, CP stock has come down about 10% in the last year. That gap can frustrate momentum chasers, but it can also create a calmer entry point for investors who care more about the next decade than the next month. A rail stock often moves in seasons, not sprints.

Into earnings

The business results remain the bigger story. In its third quarter of 2025, CPKC reported revenues of $3.7 billion and diluted earnings per share (EPS) of $1.01, with core adjusted diluted EPS of $1.10. Those numbers show it still grows profitably while it integrates a massive network and navigates a mixed economic backdrop. That sort of consistency can matter more than a hot quarter when you hold inside an RRSP.

Looking ahead, CPKC keeps leaning into the reason the merger mattered in the first place: single-line service across the continent. It can win share as shippers look for reliability and as nearshoring reshapes supply chains. It can also squeeze more efficiency out of its network as volumes normalize and integration work matures. The opportunity sits in long-haul growth and improved productivity. The risk sits in the economy. A slowdown can hit volumes, and costs like labour and fuel can still pinch margins.

Valuation looks fair for a high-quality industrial, but it isn’t a bargain-bin stock. With a dividend yield at 0.93%, it currently trades at about 21.6 times earnings. That low yield tells you this isn’t an income-first pick. It’s a compounding pick. You buy it because earnings can grow over time, and the market tends to reward that growth in the long run.

Bottom line

So why does CP help you push your RRSP balance beyond the age-40 average? It offers a simple, durable engine that can compound for years without needing perfect markets. If you keep contributing, reinvest what it pays, and let a wide-moat business do its thing, you give yourself a realistic shot at building wealth that outgrows the average. Right now, here’s what even that small dividend can create from investing that $33,000.

The magic at 40 isn’t a secret stock. It’s consistency plus a business that can still grow when you stop watching the screen.