Here’s How Much 50-Year-Old Canadians Need Now to Retire at 65

Turning 50 and not sure if you have enough to retire? It is time to pump up your retirement plan to retire at 65.

Puja Tayal

Puja Tayal has been writing for Motley Fool Canada since 2020. Her love for writing inspired her to start a college newsletter. With a Bachelors's degree in Finance and Accounting and CFA Level 1, Puja strives to transform stock discussions into breakfast table chats through her articles. A movie buff and a finance geek, Puja weaves superheroes, cartoons, and novels to tell you a story touching different aspects of investing, from portfolio and tax planning to retirement savings. Follow her on Twitter for more stories.

Published January 17, 10:00 am EST

At 50, you still have 15 years before you turn 65, the official retirement age of Canada. These 15 years can be a game-changer in retirement planning if you fire all cylinders.

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution. — Source: Getty Images

Retirement planning at age 50

At 50, you are probably at the peak of your career and have your own house. The priority should be not to retire with debt. But does it mean you should channel your money into repaying debt? Not exactly. Keep those monthly installments going and increase your investments in growth and high-yield stocks.

Yes, you are not getting any younger. But you have the financial ability to take risks because you are not dependent on your investment income as you would be after retirement.

Maxing out on a Registered Retirement Savings Plan (RRSP) might look like the best option. However, only contribute what you need for tax savings. Max out on your Tax-Free Savings Account (TFSA), as this is the account that will preserve your government pensions and save you from the taxman. TFSA withdrawals are not included in your taxable income and are therefore excluded from income-dependent government benefits like the Old Age Security (OAS).

Here’s how much 50-year-old Canadians need to retire at 65

There is no standard figure for everyone on how much money you need to retire comfortably. However, there are some popular rules that you can use as a benchmark to set a target:

Replace 70% of your pre-retirement income with investment income to maintain your current standard of living. If a major portion of your current expenses involves mortgage and other debt, ensure to pay them off before retirement.
The 4% withdrawal rule says you should withdraw 4% of your savings in the first year and adjust for inflation for about 25 years.

So, if you are currently earning $100,000/year, you need annual investment income of $70,000/year, for which you need a retirement portfolio of $1.75 million, whose 4% is $70,000.

Now, Canada Pension Plan (CPP), OAS, and Guaranteed Income Supplement (GIS) give you close to $17,196 in annual income in 2025 if you consider the maximum CPP.

In 2023, people in the 45-54 age group had an average RRSP and TFSA balance of $58,374 ($48,374 + $10,048), as per Statistics Canada data. Assuming this balance has increased to $75,000, you will need to invest $4,500 per month to have a $1.75 million portfolio. This is assuming your portfolio grows at an average annual rate of 8%.

So, to answer the question, you need $75,000 in your RRSP and TFSA and a $4,500 monthly investment at age 50 to retire comfortably at 65.

Which stocks to invest in which account

You cannot control the CPP and OAS payout, but you can control RRSP and TFSA payout. Consider investing in Kinross Gold (TSX:K) and Constellation Software through your TFSA. Gold prices are surging amidst war and geopolitical tensions. The gold price will continue to rise throughout the year if geopolitical tensions escalate, and Kinross Gold will benefit from it.

It has an all-in sustaining cost (AISC) of $1,622 per gold equivalent ounce, and gold is trading at $4,583 at the time of writing this article. The miner has used this cyclical rally to repay debt and achieve a net cash position of $485 million. Its third-quarter 2025 profit per ounce increased by 54% year over year, faster than the 40% increase in average realized gold price. The fourth quarter was stronger than the third, which means higher free cash flow, dividends, and a rising share price.

However, Kinross Gold is a cyclical stock and not something to hold for 15 years. That means you might have to book profits and reinvest the money elsewhere when the economy stabilizes. Until then, the stock can grow your money way higher than 8% and accelerate your retirement portfolio.

For your RRSP, you could consider investing in dividend stocks with a yield of 8% or above, like Telus. Consider reinvesting this dividend to benefit from the power of compounding.