What’s the Average RRSP Balance for a 70-Year-Old in Canada?

A Registered Retirement Savings Plan (RRSP) becomes especially important at 70. This is the stage in life when income stability matters more than chasing growth. Therefore, having a well-built RRSP can mean the difference between stressing over bills or comfortably enjoying retirement.

By this age, most people rely heavily on savings to fill the gaps that the Canada Pension Plan (CPP) and Old Age Security (OAS) don’t cover. So an RRSP acts like a personal pension that keeps working quietly in the background before turning into a Registered Retirement Income Fund (RRIF). It also allows Canadians to keep their investments tax-sheltered until withdrawals begin, helping stretch their money further during a period when every dollar counts.

The average

Canadian investors should also know that the average RRSP balance for 70-year-olds is often much lower than what financial planners recommend. National surveys and banking data show that many Canadians in their late 60s and early 70s hold balances in the $150,000 to $300,000 range. Sure, this sounds significant, but it doesn’t always translate into comfortable long-term income when withdrawals begin.

Rising costs of living, longer lifespans, and unexpected medical expenses can quickly eat away at that amount. For many retirees, the reality sets in that their RRSP must last 20 to 30 years, meaning the margin for error is small. Another key point is that RRSP savings vary widely depending on employment history, access to workplace pensions, and how consistently people contributed during their 40s and 50s.

Some retirees enter their 70s with strong balances because they benefited from high-earning years or defined-contribution plans. Meanwhile, others rely almost entirely on government benefits and modest RRSP savings. This uneven distribution makes it more important for individuals to understand their personal withdrawal strategy, tax obligations, and how to maximize what they have. What the averages really show is that many Canadians underestimate how much income they’ll need later in life.

Where to invest

Once Canadians reach their 70s, the conversation often shifts from growth to sustainable withdrawals. This is where the average balances often fall short. Even though mandatory RRIF withdrawals begin at 71, the goal remains the same: preserve capital while generating steady income. Those who recognize early how savings compare to national averages are better equipped to adjust spending, invest more conservatively, or use dividend-producing assets to extend the lifespan of their nest egg. So, how can investors catch up?

The iShares S&P/TSX Composite High Dividend ETF (TSX:XEI) is designed to hold a diversified basket of Canada’s strongest dividend-paying companies. Its performance has been steady and income-focused, benefiting from exposure to banks, pipelines, utilities, and telecoms. These are sectors known for resilience and reliable cash flow. While it doesn’t aim for high-flying growth, XEI shines through its consistency, offering a healthy yield and smoother returns compared to more volatile equities. For retirees, that balance of stability and ongoing payout has made it a popular choice.

XEI is a great way to create ongoing income in an RRSP at age 70 as it delivers exactly what most retirees need. That’s dependable, tax-deferred dividends from mature Canadian companies that have a history of paying through recessions and market swings. Its monthly distributions simplify budgeting, and its diversification reduces the risk of relying on any single stock to fund retirement. Even now, here’s what $80,000 invested in XEI could bring in annually from dividends alone.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUALPAYOUTFREQUENCYTOTAL INVESTMENTXEI$32.152,488$1.54$3,831.52Monthly$79,977.20

Bottom line

By holding XEI inside an RRSP or later an RRIF, investors can turn a portion of their savings into steady, predictable income – income that supports their lifestyle without requiring hands-on portfolio management.

The post What’s the Average RRSP Balance for a 70-Year-Old in Canada? appeared first on The Motley Fool Canada.

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More reading

• My Blueprint for Monthly Income Starting With $20,000
• How Beginners Can Turn a Pocket-Sized TFSA Into Serious Wealth

Fool contributor Amy Legate-Wolfe 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.