Turning 55 can make retirement feel close fast. At 35, investors can still say they have decades. At 45, they can still talk about catching up. But at 55, the countdown feels real. That doesn’t mean panic, it just means clarity. The average Canadian at this age may not sit on a giant nest egg, but they may have more assets than their Registered Retirement Savings Plan (RRSP) balance suggests.
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How much is enough?
Fidelity Canada, using Statistics Canada data, says the median family with a household head aged 55 to 64 had $120,000 in RRSP savings in 2023. Employer-sponsored pension assets looked much larger, at $335,000. The gap helps with context. Some Canadians rely heavily on workplace pensions, while others have no pension at all. They need RRSPs, non-registered accounts, and home equity to do more of the lifting.
So, what should retirement savings look like by 55? Messy, frankly. One household may have a paid-down home and a small RRSP. Another may rent, but hold a strong pension. A third may have investments, debt, and adult kids still needing help. The better question becomes: Does the income plan work?
Bank of Montreal (TSX:BMO) could fit that conversation. BMO stock isn’t a flashy retirement stock. That’s part of the appeal. It’s one of Canada’s largest banks, with personal and commercial banking, wealth management, capital markets, and U.S. operations. For someone at 55, the goal often shifts from chasing every growth stock to owning companies that can support income, stay profitable, and keep paying through rough patches.
Considering BMO
Banks just reminded investors they can still grow despite a slower economy. In its second quarter of 2026, BMO stock reported net income of $2.6 billion, adjusted earnings per share (EPS) of $3.23, and revenue climbed to $9.4 billion. The bank also raised its quarterly dividend to $1.71 per share, up from $1.67.
The dividend gives retirees and near-retirees something useful: cash flow they can see. Based on recent prices, BMO stock offers a yield around 4%. It won’t fund retirement alone. Yet even with $21,000, it could held fund RRSP growth.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BMO | $223.60 | 31 | $6.84 | $212.04 | Quarterly | $6,931.60 |
BMO stock also carries a strong capital position. Its common equity tier one (CET1) ratio reached 12.8% in the latest quarter. That gives the bank room to absorb stress, although investors shouldn’t confuse strength with immunity. If unemployment rises or credit losses climb, banks can still feel pain.
Considerations
The valuation also needs a sober look. BMO stock doesn’t look wildly expensive, but it also doesn’t look like a screaming bargain after Canadian bank stocks recovered. The better case comes from long-term compounding. A 55-year-old investor doesn’t need every holding to double quickly. They need reliable earnings, a reasonable yield, and a business that can remain relevant for the next 10, 20, or even 30 years.
The risk? BMO stock has U.S. exposure, and that can cut both ways. It creates growth opportunities, but also adds credit, regulatory, and integration risk. Canadian housing weakness could also pressure sentiment toward all bank stocks, even well-run ones. Investors should avoid loading a retirement portfolio with only banks, no matter how familiar they feel.
Bottom line
All in all, BMO stock fits the retirement savings reality for many Canadians at 55. The number in the RRSP may not look perfect, but the plan can still improve. Keep saving, reinvest dividends where possible, reduce expensive debt, and build income from durable businesses. A stock like BMO can also help nervous investors stay invested when headlines make cash feel safer for the long haul. At 55, retirement planning doesn’t need perfection, but traction. BMO stock can help provide some.
