Here’s What Retirement Savings Often Look Like for Canadians at 55

By Aditya Raghunath at The Motley Fool Canada

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.

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.

The post Here’s What Retirement Savings Often Look Like for Canadians at 55 appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026