Canada encourages a savings culture. The Canada Revenue Agency (CRA) offers different types of registered savings accounts for different purposes: The Registered Retirement Savings Account (RRSP) for retirement, First Home Savings Account (FHSA) for your first house down payment, and Tax-Free Savings Account (TFSA) for other financial goals. Among the three, the RRSP is the oldest and most popular among wealthy Canadians, whereas the TFSA is underused.
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How much does a typical 45-year-old have saved in an RRSP
The CRA determines RRSP contributions based on income. You can contribute 18% of your previous year’s taxable income or the maximum contribution, whichever is lower. For the 2023 tax year, the maximum RRSP contribution limit was $30,780. We used this figure as the RRSP statistics are for the 2023 tax year.
A typical 45-year-old Canadian had a median RRSP balance of $70,000 and an average balance of $150,300. The average figure is skewed towards a higher RRSP balance, whereas the median shows the midpoint of the range. To interpret this data, let’s assume five people represent the Canadian population contributing to RRSPs.
| Particulars | Scenario 1 | Scenario 2 |
| Person 1 | $100 | $100 |
| Person 2 | $500 | $200 |
| Person 3 | $700 | $300 |
| Person 4 | $800 | $500 |
| Person 5 | $1,000 | $1,000 |
| Average | $620 | $420 |
The median or midpoint of $0–$1,000 is $500. However, the average depends on where most investments are parked. In Scenario 1, four out of five people had an RRSP balance of $500–$1,000. Thus, the average is on the upper side. In Scenario 2, three out of five had an RRSP balance below $500, pulling the average to the lower side.
The high average RRSP balance of 45-year-olds shows mostly wealthy individuals use this account.
How much does a typical 45-year-old have saved in a TFSA
When it comes to a TFSA, the annual contribution limit is the same for all income groups. If you were 18 years old in 2009, your accumulated TFSA contribution room was $95,000 in 2024, irrespective of your income. The TFSA average also includes low-income earners and dependents, whereas the RRSP average includes medium and high-income earners.
| TFSA Statistics (2024 tax Year) | 40–44 | 45–49 | 50–54 |
| Average Contribution | $9,993 | $10,697 | $11,942 |
| Avg Fair Market Value (FMV) | $24,061 | $28,084 | $35,235 |
| Cumulative Contribution (CC) | $95,000 | $95,000 | $95,000 |
| FMV/ CC | 25% | 30% | 37% |
The TFSA average was $28,084 for a 45-year-old. Thus, if you are a high-income earner and still have the average TFSA balance, you are underutilizing it.
TFSA and RRSP stocks for 45-year-olds
At age 45, you are in a higher income bracket. Instead of focusing only on the RRSP, consider maxing out on your TFSA first. If you earn $80,000–$100,000 a year, a $7,000 investment in an RRSP will give you a 20.5% tax saving of $1,435. However, the withdrawals will be taxable.
A $7,000 investment in Broadcom (NASDAQ: AVGO) through the TFSA for the long term can grow your money multiple-fold in 10 years. The semiconductor company has been growing rapidly for the last 20 years, adapting to the changing needs of the market. It started as a communications chip company. As communications expanded beyond broadband to cloud, network infrastructure, and now artificial intelligence (AI), Broadcom evolved organically and through acquisitions. It has expanded the semiconductor content that goes into infrastructure and now earns more revenue from the same projects. As technology evolves, Broadcom will adapt and grow.
The stock surged 300% between January 2023 and 2025, riding the AI data centre rally. After the March 2025 dip triggered by the US tariff wars, the stock surged another 200%. It shows that Broadcom is a long-term growth stock and ideal for a TFSA, as it can make the fivefold capital gain tax-free.
RRSP stock worth considering
Ideal stocks for RRSPs are those that can give stable dividends for the long term. Telus Corporation is worth considering despite its high yield. There is a risk of a dividend cut, but dividend payments will continue for the long term. Now is a good time to buy, as the stock is oversold and any possible dividend cut may not pull the stock down significantly.
