The average Canadian Registered Retirement Savings Plan (RRSP) at age 55 lands roughly in the $160,000 to $200,000 range, according to the most recent data. That number can feel comforting or alarming, depending on where you sit, but it works best as a benchmark, not a verdict. So, let’s look at where you might sit today and how to play catch-up.
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What to know
The first thing to know is that “average” usually overstates what most people have, because a smaller group with very large RRSPs pulls the number higher. A more useful mental model is this: many Canadians in their 50s hold far less than the average, while a minority hold a lot more. So, if you’re behind, you’re not alone, and if you are ahead, you still want to protect what you have built.
The second thing to consider is what an RRSP balance needs to do for you. At 55, you likely have 10 to 15 working years left, which means the goal is not just to “save more,” but to turn contributions into compounding. Employer matching, spousal RRSP planning, and a steady contribution habit can matter more than trying to pick one perfect stock. It also helps to remember you can contribute to an RRSP until the end of the year you turn 71, so the runway is longer than most people assume.
The third piece is risk. If you chase returns aggressively to “catch up,” you can also create a situation where a bad year lands at the worst time. At 55, a simple approach often wins: build a diversified core, keep fees low, and stay consistent. The RRSP is designed to reward boring discipline, because the tax deduction helps you contribute more, and time does the rest if you keep investing through market cycles.
Consider XIC
iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC) is about as straightforward as Canadian equity exposure gets. It aims to track the broad Canadian stock market through the S&P/TSX Capped Composite Index, with limits to keep any single name from dominating. Over the last year, Canadian equities benefited from a strong stretch, and XIC reflected that, with a one-year total return of around 30% at writing. That kind of run always comes with a reminder: great years can make future returns feel easier than they will be, so you want to treat it as progress, not proof that markets only go up.
On the numbers, XIC currently offers a modest income stream alongside growth. Its distribution yield sits around 2.21%, it pays distributions quarterly, and its most recent distribution per unit was about $0.28. The fund also looks reasonably valued relative to its own history and the TSX overall, trading at about 21 times earnings. Those figures move as prices and earnings change, but they give you a snapshot of what you are paying for Canadian corporate profits. Even so, just $7,000 can bring in quite a lot of income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| XIC | $53.40 | 131 | $1.18 | $154.59 | Quarterly | $6,995.40 |
The outlook for it in 2026 depends on the same drivers that always move the TSX: bank earnings, commodity cycles, and whether the economy stays resilient enough to support profits. The risk is concentration, as Canada’s market still leans heavily toward financials and energy. That can be a feature when those sectors lead, and a headache when they lag. It also means XIC will not behave like a U.S. tech index, so investors chasing pure growth may find it too grounded.
Bottom line
XIC could be a buy for Canadians to put in their RRSP at 55 as it offers broad Canadian equity exposure, low ongoing costs by exchange-traded fund standards, and a simple structure that makes consistent investing easier. It could also be the wrong tool if you need higher growth and global diversification, as it leans Canadian and sector-heavy by nature. For many investors, it works best as a core holding that you pair with global equities or bonds, depending on your risk tolerance and your timeline to retirement.
