The Age 45 Financial Check-In: Are You Where You Need to Be?
By age 45, the "mid-life" reality check usually sets in. You have roughly 20 years left in the workforce—enough time for compounding to work its magic, but not enough time to ignore the math. At this stage, most Canadians want a simple answer to one question: "How do I compare to everyone else?"
While everyone’s path is unique, looking at national averages and expert benchmarks can help you determine if you're on track or if it’s time to pick up the pace.
The 2026 Benchmarks: Average vs. Median
Data from recent years shows a significant gap between the "average" Canadian and the "median" (the person right in the middle). For those in the 45-54 age bracket, the numbers tell an interesting story:
- RRSP & Registered Assets: The average balance for this group is approximately $150,300. However, the median balance is closer to $70,000. This suggests that while a few high-earners have massive accounts, many Canadians are heading into their late 40s with under six figures in registered savings.
- TFSA Balances: For those aged 40-44, the average TFSA fair market value is roughly $17,600. With the 2026 cumulative limit reaching $109,000 for those eligible since 2009, most 45-year-olds have significant unused room available.
The "Salary Multiple" Rule
Instead of comparing yourself to a national average, many financial experts recommend using your own income as a yardstick. A common benchmark for age 45 is to have 4x your annual salary saved in total retirement assets. If you earn $100,000, the target would be $400,000 across all accounts (RRSP, TFSA, non-registered, and pension values).
Where Should Your Money Live? (The Strategy)
At 45, you are likely in your peak earning years, which changes the strategy for where you should prioritize your savings:
- The RRSP Advantage: If you are in a high tax bracket, the RRSP is usually the winner. A contribution at age 45 gives you a significant tax refund now, and the goal is to withdraw that money in 20+ years when your tax bracket is lower.
- The TFSA Flexibility: The TFSA is the perfect "overflow" bucket. If you’ve maximized your RRSP or if you anticipate being in a high tax bracket during retirement, the TFSA allows your investments to grow completely tax-free without impacting government benefits like OAS later on.
- The "Hidden" Assets: Don't forget to account for your home equity and employer pensions. For many Canadians, a defined benefit pension or a plan to downsize a primary residence acts as a massive "hidden" retirement fund that isn't reflected in RRSP stats.
What If You're Behind?
If your balances are below the $70,000 median or the 4x salary benchmark, don't panic. You still have two decades of earning power. The shift at 45 is moving from "passive saving" to "active optimization."
The goal isn't just to have the biggest pile of money—it's to ensure the money you do have is structured to last. Small changes in how you allocate between your RRSP and TFSA today can result in six-figure differences in your total lifetime tax bill.
The Bottom Line
Being "average" at 45 is a start, but your retirement won't be average. It will be personal. Whether you have $50,000 or $500,000, the next 20 years are about making sure your plan accounts for taxes, inflation, and the lifestyle you actually want to live.
Want to see exactly where you stand? Optiml helps you run the numbers, compare your current path to an optimized one, and build a plan to minimize your lifetime taxes.
