Average savings by age in Canada
Canadians aren’t doing too badly when it comes to average savings, socking away funds both inside and outside of registered retirement savings plans (RRSPs). According to Statistics Canada data from 2019 (the most recent information available), we’ve saved this much on average, not including private pensions and non-financial assets like real estate:
Under age 35: $27,425 in non-pension financial assets and $9,905 in RRSPs
Ages 35 to 44: $23,743 in non-pension financial assets and $15,993 in RRSPs
Ages 45 to 54: $39,831 in non-pension financial assets and $41,998 in RRSPs
That was a few years ago. What happened during the pandemic, when travel restrictions, lockdowns and economic uncertainty put a pause on spending? Many households saw their savings grow.
According to the Bank of Canada2020 saw an “unprecedented increase” in savings of about $5,800 per Canadian, totalling $180 billion. (About 40% of this amount was accumulated by high-income households, which were less affected by pandemic-related job loss than lower-income households.) Canadians collectively saved an extra $350 billion by the end of 2021, according to Statistics Canada. Much of that money has since gone toward a return to spending, as well as paying down debt and mortgages. And speaking of debt and mortgages…
Financial goals in your 20s, 30s, 40s and beyond
Your financial goals will change significantly with every new decade. Here’s a look at the big expenses you may need to plan for in each phase of your life:
Life expenses in your 20s
There’s a lot to spend on in your 20s. Rent is often a major expense. For example, the average rent for a bachelor/studio apartment in Toronto is now $1,427 per month; in Vancouver, it’s $1,489. Paying off student debt might also be a priority. The average 20-something with a bachelor’s degree owes $30,600 at graduation, while a college grad owes $16,700. You might also need funds for trips abroad, socializing with friends, and buying or leasing a car.
Still, it’s good to get into the habit of saving early, whether it’s for a financial goal or an emergency fund. Consider setting up automatic transfers to put a percentage of your income into a HISA, such as CIBC’s eAdvantage Savings Account. It currently offers a 5.25% interest rate for four months when you open your first account, on balances up to $1,000,000. And if you’re able to save $200 a month, you’ll earn an additional 0.5% on balances up to $200,000.
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CIBC eAdvantage Savings Account
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Monthly fee: $0
Regular interest rates: 0.35% to 1.60%, depending on account balance, plus 0.5% Smart Interest when you save $200 or more in any month
Welcome offer: 5.25% interest for 4 months on balances up to $1 million
Transactions: $5 each
Eligible for CDIC coverage: Yes
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Life expenses in your 30s
By your 30s, you’re likely earning more than you did in your 20s, but you also have several new expenses to cover. Maybe you’re getting married—the average wedding cost in Canada is $22,000 to $30,000. Or you’re growing your family; on average, parents pay $508 per month for full-time daycare, according to Statistics Canada. Or maybe you have a pet that you dote on—that could set you back a few thousand dollars a year. And if you plan to buy a home, the average monthly payment for a new mortgage in Canada was $2,135, as of the first quarter of 2024—expect to spend more in pricey markets like Toronto and Vancouver.
If you’re saving for any of these goals (or something else), using a HISA will help your money grow and keep up with inflation in the meantime.
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