Here’s the Average TFSA and RRSP for Canadians at Age 65

As Canadians approach their golden years, many are starting to take a closer look at their savings. The average Registered Retirement Savings Plan (RRSP) balance for people 65 and older is $129,000, while the average Tax-Free Savings Account (TFSA) balance is approximately $41,000. Combined, these accounts offer a total of approximately $170,000. pension saving.

While this may seem like a reasonable amount, it often pales in comparison to the amount needed for a comfortable retirement. Financial experts suggest that retirees should aim to save between $500,000 and $1 million to maintain their lifestyle, especially given rising living and healthcare costs. So how do you grow?

close the gap

This gap between savings and retirement needs is a growing concern. Retirement income from government benefits such as the Canada Pension Plan (CPP) and Old Age Security (OAS) can help. But these alone are rarely enough to support a comfortable life. Investing wisely becomes critical for Canadians hoping to close this gap. One of the notable options Fairfax Financial Holding (TSX:FFH), a company with a strong track record and a promising outlook.

Fairfax Financial is a Toronto-based holding company focused on property and casualty insurance, reinsurance and investment management. Known for its disciplined investment strategy led by Prem Watsa, Fairfax has a reputation for delivering solid returns. FFH reported net earnings of $1.03 billion in the third quarter of 2024. The significant increase was attributed to strong adjusted operating income and net gains from investments. Book value per common share also increased 11.7% compared to the previous year end, to $1.033 billion; This reflects the company’s strong financial foundation.

Performance

Looking at past performance, we see that Fairfax shares have been a consistent performer. The company had net earnings of $4.38 billion in 2023, up from $3.37 billion in 2022. This steady growth highlights Fairfax shares’ ability to adapt to changing market conditions while continuing to create shareholder value. It’s not just about numbers either. Fairfax is known for a balanced approach that blends underwriting expertise with a diversified investment portfolio.

So what’s in store for Fairfax shares? The company’s future outlook remains optimistic, as it plans to leverage its strong capital position for further growth. Fairfax shares are focused on disciplined underwriting and strategic activities. acquisitions. This can provide stability and expansion opportunities. There is an emphasis on long-term investments, even in volatile markets. Therefore, Fairfax is an attractive choice for investors looking for growth as well as reliability.

retirement benefit

For Canadians approaching or retiring, Fairfax shares can be a valuable addition to a diversified investment portfolio. By investing in a strong company such as Fairfax stock, individuals can potentially benefit from capital appreciation and dividend income. This can help stretch retirement savings even further. Of course, it is important to remember that investing always carries some risk. Therefore, it is very important to do thorough research and consult financial experts.

Capturing retirement savings isn’t just about choosing the right stocks. It’s also about maximizing what you already have. Canadians should take full advantage of RRSP and TFSA contribution limits. For example, contributions to an RRSP can provide immediate tax benefits by reducing taxable income—all while the investments grow tax deferred until withdrawn. Meanwhile, the TFSA allows for tax-free growth, making it a great tool for growing wealth.

In conclusion

Cutting non-essential expenses can also free up necessary funds for investment. Every dollar wisely saved and invested today can have a compounding effect over the years. Combining disciplined savings habits with strategic investments in companies like Fairfax shares can significantly increase your retirement nest egg.

The average retirement savings for Canadians aged 65 may not be enough to live the life many dream of. But it’s never too late to take action. Investing in well-performing stable companies like Fairfax shares, combined with maximizing contributions to RRSPs and TFSAs, can help Canadians bridge the gap and build a more secure financial future. With a proactive approach, even catchers can look forward to a retirement that is both comfortable and financially secure.