Is the average TFSA and RRSP sufficient at age 65?

For many Canadians approaching 65, Tax Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) balances often feel smaller than expected. Life happens, with mortgages, children, career changes, caregiving and periods of lower income usually taking precedence over maximizing registered accounts. At retirement age, many people look at their savings and realize that they’ve done “good,” but not great, and wonder if it will support the lifestyle they really want to sustain for the next 25 to 30 years.

Where do you fall?

Across Canada, the average RRSP balance for a 65-year-old is often estimated at around $180,000 to $250,000. Meanwhile, the average TFSA balance is closer to $90,000 to $120,000. These figures vary widely depending on income history, workplace pensions and contribution habits. However, they paint a clear picture. Most Canadians do not have multi-million dollar registered portfolios at retirement. Combined, the average total recorded savings for a 65-year-old is often between $270,000 and $370,000. That may sound substantial, but spread over decades of retirement it can feel surprisingly tight.

For many Canadians, the honest answer is that this is not enough to live comfortably, especially given longer life expectancies and rising costs. Even with the Canada Pension Plan (CPP) and Old Age Security (OAS), retirees who rely on modest RRSP and TFSA balances may struggle to maintain their pre-retirement lifestyle. At least, unless the investments continue to work hard. The good news is that at age 65 it’s not too late to improve results. TFSAs remain incredibly powerful because withdrawals do not impact government benefits, and RRSPs can still be strategically converted into Registered Retirement Income Funds (RRIF) to generate stable income.

What Canadians need to know is that “catch-up mode” looks different at age 65 than it does at age 45. The goal shifts from chasing big profits to preserving capital, earning reliable income and smoothing out returns. This way, market fluctuations do not derail pension plans. That’s where balanced and income-oriented ETFs can quietly do a lot of the heavy lifting. Rather than trying to outsmart the market late in the game, many retirees are better served by owning broad, diversified exchange traded funds (ETFs) that generate income, reduce risk, and ensure savings grow steadily for the rest of their lives.

Consider this ETF

The BMO Balanced ETF (TSX:ZBAL) is a simple, one-ticket solution that includes a diversified mix of global stocks and bonds, typically around a 60/40 split. It is designed for investors who want growth and income without having to rebalance or manage multiple positions. Performance has historically been smoother than pure equity ETFs. This is extremely important at age 65, when protecting capital becomes as important as growing it. ZBAL offers exposure to Canadian, U.S. and international stocks in addition to high-quality bonds, making it a strong sleep-at-night option for retirees looking to catch up.

From there, BMO Aggregate Bond Index ETF (TSX:ZAG) focuses exclusively on bonds and holds a broad mix of Canadian government bonds and investment grade corporate bonds. While it doesn’t deliver mind-blowing returns, it plays a crucial role in stabilizing a portfolio and generating stable income. For retirees concerned about market volatility, ZAG helps dampen portfolio fluctuations while still providing a return that can support withdrawals. In a world where guaranteed investment certificate (GIC) rates are falling, a diversified bond ETF offers flexibility, liquidity and income without tying up money.

Meanwhile, the iShares S&P/TSX Canadian Dividend Aristocrats ETF (TSX:CDZ) focuses on companies with a long history of dividend growth and offers retirees an income with built-in inflation hedging. These are mature, cash-generating companies that have raised dividends over multiple economic cycles. CDZ has historically delivered a mix of revenue and modest growth. This makes it ideal for investors who need to continue paying more into their portfolio over time.

In short

For Canadians aged 65 looking to catch up, combining funds like ZBAL for balance, ZAG for stability and CDZ for income growth can create a resilient, low-stress portfolio that will work well into retirement. And right now, this is what could make $50,000 a share.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
CDZ	$40.48	1,234	$1.41	$1,740. 94	Monthly	$49,963.52
SAW	$13.80	3,623	$0.47	$1,703. 81	Monthly	$49,997.40
BALL	$14.90	3,355	$0.29	$973.00	Monthly	$49,999.50

Together, these investors provide a strong income that they can use not only at age 65, but for the rest of their retirement life.