Jan 12: BEST OF THE BLOGOSPHERE

January 12, 2026

Hey Boomer! How do your retirement savings stack up against the average?

When we’re out on the golf course next spring, our watch tells us how we’re doing – how far we’ve got to go to the green, how far we’ve come from the tee, and whether this Tuesday’s score will be among our best or worst.

But, reports Vishesh Raisinghani, writing for Money Canada, there is no such smart watch or scorecard to tell us how our savings efforts stack up against those of others in our age bracket.

Let’s take boomers, the article begins.

“With the youngest baby boomers now aged 61, much of this generation is already retired or nearing retirement,” Money Canada reports. “However, data shows many have inadequate savings and, as a result, may struggle to maintain their standard of living. In fact, some boomers have saved so little that younger Canadians could surpass their savings benchmark with just a few years of disciplined saving and investing,” the article adds.

Boomers, the article continues, have saved, on average, $756,497 for retirement according to Statistics Canada. “Many also hold other assets such as GICs, stocks, mutual funds and real estate. This put the average net worth of households for those aged 65 and above at just over $5.5 million,” the article notes.

That sounds pretty good, right?

“This financial sum might look good at first, but it could fall short of recommended retirement benchmarks. After all, your net worth can include big-ticket assets like your home,” the article warns.

“Most Canadians believe they will need $1.54 million to retire comfortably, according to survey data from BMO, and many are finding that their savings fall short, especially if they want to maintain their current quality of life,” the article adds.

There is a target to aim for, Money Canada reports, and that is to have savings that produce income equal to about 70 per cent of what you make at work.

“With the average annual income for Canadians aged 55 to 59 at $42,800, the target is to save enough to earn approximately $29,960 per year (from interest, capital appreciation and dividend earnings),” writes Raisinghani.

“Assuming a retirement age of 65 and average life expectancy, men should look to save at least $419,440 and women to save at least $539,280 to generate close to $30K per year in retirement income,” the article continues.

The dangers, the article notes, in not generating enough retirement income are several. A recent study from CPP Investments found that “61 per cent of Canadians are afraid of running out of money during retirement,” the article reports. And if your income from savings is low in retirement, “many boomers may be forced to take on debt, rely heavily on their Canada Pension Plan and Old Age Security, cut back their lifestyles or even return to work.”

What’s the solution?

“Whatever your personal `magic number’ for retirement is, you can achieve it if you start early and stay consistent. Depending on how aggressively you save, you could be well on your way to being financially ahead of where the average boomer stands today,” the article concludes.

Many experts feel that making savings automatic – directly deposited from your bank account on payday before you can even think of spending it – is the “set it and forget it” approach to building savings.

Members of the Saskatchewan Pension Plan can automate their savings. You can make pre-authorized contributions from a bank account or credit card, building your nest egg steadily and without having to think about it.

SPP takes those contributions and grows them in our professionally managed, low-cost pooled fund. And when it’s time to turn savings into income, your options include a monthly lifetime annuity payment – income that never runs out – or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Money Canada

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