Turning 55 means that you have roughly 10 years before retirement. Most people picture a million-dollar nest egg as the finish line. But the real numbers for Canadians in this age group tell a very different story, and it is worth looking at closely before you decide what to do next.
Here is what the data shows and why I think Royal Bank of Canada (TSX:RY) belongs in the conversation for anyone trying to close the gap.
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How much have Canadians saved by 55?
According to a report by Optiml, the average RRSP (Registered Retirement Savings Plan) balance for Canadians aged 55 to 64 is approximately $216,900. Comparatively, the average Tax-Free Savings Account balance in this age group is less than $40,000.
However, the median RRSP balance for a 55-year-old in Canada is much lower at $100,000. It indicates that the average balance is tied to a small group of high savers. The median balance better reflects the financial status of future Canadian retirees and tells a more sobering story.
In plain terms, half of Canadians heading into their final working decade have less than six figures saved in the primary retirement account.
A $100,000 RRSP does not stretch very far once you start drawing it down. Using a conservative 4% annual withdrawal rate, that balance produces about $4,000 a year in income.
Add government support like the Canada Pension Plan, which averages close to $877 a month for new recipients, along with Old Age Security, and total retirement income for many Canadians still lands under $30,000 a year.
For most people, it is a steep drop from their working income. It is not a reason to panic, but it is a clear signal that the next 10 years matter more than any that came before.
Own quality blue-chip stocks for the next decade
A proven investment strategy to outpace inflation over time is to own quality blue-chip dividend stocks, such as the Royal Bank of Canada (TSX:RY).
Over the last 10 years, RBC stock has returned 410% to shareholders, after adjusting for dividend reinvestments. Despite these outsized returns, the Canadian bank stock offers you a forward dividend yield of 2.4%. Moreover, its annual dividend has risen from $2 per share in July 2011 to $7.04 per share in July 2026.
In fiscal Q2 of 2026 (ended in April), RBC reported earnings of $5.5 billion, with a return on equity of 17.2%. RBC reported record net income in the Capital Markets segment and posted strong growth across Wealth Management and Commercial Banking.
The bank also raised its quarterly dividend by $0.12, a 14% increase from a year earlier, and it repurchased 7.4 million shares for about $1.7 billion during the quarter. Management further announced plans to buy back up to 45 million shares, subject to regulatory approval.
RBC’s capital position remains strong too, with a common equity Tier 1 ratio of 13.5%, among the highest in Canadian banking. A strong balance sheet provides the bank with room to keep paying and raising its dividend across market cycles.
Chief Executive Officer Dave McKay said RBC generated $20.4 billion in earnings in 2025 while returning more than $11 billion to shareholders through dividends and buybacks.
He also pointed to a target return on equity of 17% or higher going forward, driven by efficiency gains and continued investment in artificial intelligence across the bank’s operations.
For Canadians rebuilding retirement savings in their 50s, a steadily rising dividend paired with a business that keeps growing earnings is the kind of holding that can compound quietly inside a TFSA or RRSP.
I believe RBC remains one of the more reliable core holdings for Canadians who want growing income alongside long-term share price appreciation, and it is a stock worth strong consideration as part of a catch-up strategy heading into retirement.
