Jun. 1: BEST OF THE BLOGOSPHERE 

June 1, 2026

Boomers are the wealthiest, but younger generations can catch up

In an article for Money Canada, Rebecca Holland notes that while boomers are Canada’s “wealthiest generation ever,” younger generations have the means to catch up.

“Baby boomers have long held the largest share of this country’s financial assets, and the numbers back it up,” she begins.

“The average boomer household’s net worth rose to $1,458,282 in the second quarter of 2025, according to StatCan figures,” Holland continues. Boomers, she notes – this time citing data from TD Asset Management – control “almost 50 per cent of Canada’s wealth – while millennials, despite making up the largest share of the labour force, hold just 10 per cent.”

How, she asks, did the boomers get to the top of the heap?

“Real estate appreciation was one way — boomers bought homes when prices were modest, and those properties generated wealth over the years. Many retirees received defined benefit (DB) pensions, something far less common today. And boomers hit their prime earning years during one of the longest stock and bond market rallies in history,” she explains.

There is a bit of a subset here, she remarks. “TD Asset Management confirms that while boomers collectively hold close to half of Canada’s wealth, a large portion of that is concentrated at the top of the income ladder,” notes Holland.

What can other boomers do prior to retiring to close the gap with their peers? Holland’s article recommends they consider working up to age 70, so that their Canada Pension Plan (CPP) and Old Age Security (OAS) benefits get a significant boost.

“For boomers still in good health, delaying both CPP and OAS can add hundreds of dollars monthly in permanent, inflation-indexed income that will never run out,” she advises. Downsizing in retirement, she continues, is a good way to “unlock” some of the equity in their larger, existing homes.

Gen Xers, Holland says, born between 1965 and 1980, aren’t going to have the security of a DB pension like their parents. Most, if they have a pension at all, take part in defined contribution (or DC) plans, which don’t offer a guaranteed income in retirement, but one based on the success of investment results, she notes.

It’s a group that, according to a recent Healthcare of Ontario Pension Plan study, have their doubts about affording retirement, with 20 per cent fearing they will never be able to retire. But, Holland reassures us, there is still lots they can do to improve their chances.

“Maxing out registered retirement savings plan (RRSP) and Tax Free Savings Account (TFSA) contributions is the most important starting point. The 2026 RRSP contribution limit is $33,810 — or 18 per cent of the previous year’s earned income, whichever is less — and any unused contribution room from that carries forward. That carry-forward is a lifeline for anyone who couldn’t contribute in previous years, perhaps when income was lower. Additionally, the TFSA limit sits at $7,000 for 2026, with a cumulative lifetime limit of $109,000 for those eligible since 2009,” she points out.

As well, she advises, Gen Xers must “tackle debt… Gen X households aged 46 to 55 carry the highest average non-mortgage debt of any age group — $34,564 as of Q4 2024, according to Equifax Canada.”

It’s debt that is the biggest savings obstacle for Canadian millennials. They and their GenX cousins “together carried $1.1 trillion in outstanding credit balances as of Q4 2024 — a 10 per cent jump from the year before, according to TransUnion Canada. The average non-mortgage debt for each Canadian consumer hit $21,931, with debt-to-income ratios remaining high. Meanwhile, disposable income for millennials crept up to just 1.7 per cent year-over-year in Q2 2025, compared to 3.9 per cent for all households — making it harder to chip away at debt and save for retirement at the same time.

But there’s good news for millennials, writes Holland.

“Millennials who are young enough to still have two or three decades of earning ahead of them have two of the most powerful financial tools available — time and compounding growth. Automating savings — directing even a small, fixed percentage of each paycheque into an RRSP or TFSA — removes the decision-making tension that can lead to missing contributions,” she writes. They should set up Registered Education Savings Plans for their kids, the article adds.

Interestingly, the youngsters in the Gen Z cohort seem to be doing better than their older peers, Holland writes.

“Data shows the youngest generation of Canadian adults may be the most financially self-aware of all. The National Payroll Institute’s 2025 Annual Survey of Working Canadians by Canada’s Financial Wellness Lab found that Gen Z workers are saving an average of 11 per cent of each paycheque — a higher proportion than any other generation,” she reports.

“The main focus for this generation is maximizing employer matching in workplace pension or group RRSP plans — free money that too many workers leave on the table — while also taking full advantage of the TFSA for tax-free growth. With cumulative TFSA room growing at $7,000 every year, a young Canadian who starts contributing early and invests consistently can build a substantial, tax-free nest egg over a 40-year career,” she explains.

Her closing thoughts are as follows – be sure to know your government pension options in advance. Maximize registered accounts first. Get debt under control, she concludes – get going on this yourself “and don’t wait for the inheritance.”

A couple of key themes that run through this article are relevant for current and future members of the Saskatchewan Pension Plan. Once you join the plan – the earlier, the better – be sure to make automatic contributions each payday. SPP makes it easy to do this (PAC-PCC-application.pdf).

The second idea is the power of compounding – investing over a long time frame. SPP invests your savings in a professionally managed, low-cost fund that has had an average rate of return in excess of eight per cent throughout SPP’s 40-year history.

You save, we invest – and when it’s time to turn savings into income, your SPP options include the security of a lifetime monthly annuity payment, or the flexibility of our Variable Benefit.

Check out SPP today!

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Money Canada

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