Turning 55 means that you’ve got roughly 10 years earlier than retirement. Most individuals image a million-dollar nest egg because the end line. However the actual numbers for Canadians on this age group inform a really totally different story, and it’s value taking a look at carefully earlier than you resolve what to do subsequent.
Here’s what the info exhibits and why I believe Royal Financial institution of Canada (TSX:RY) belongs within the dialog for anybody attempting to shut the hole.
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How a lot have Canadians saved by 55?
In keeping with a report by Optiml, the common RRSP (Registered Retirement Financial savings Plan) stability for Canadians aged 55 to 64 is roughly $216,900. Comparatively, the common Tax-Free Financial savings Account stability on this age group is lower than $40,000.
Nevertheless, the median RRSP stability for a 55-year-old in Canada is far decrease at $100,000. It signifies that the common stability is tied to a small group of excessive savers. The median stability higher displays the monetary standing of future Canadian retirees and tells a extra sobering story.
In plain phrases, half of Canadians heading into their ultimate working decade have lower than six figures saved within the major retirement account.
A $100,000 RRSP doesn’t stretch very far when you begin drawing it down. Utilizing a conservative 4% annual withdrawal price, that stability produces about $4,000 a 12 months in earnings.
Add authorities help just like the Canada Pension Plan, which averages near $877 a month for brand spanking new recipients, together with Previous Age Safety, and complete retirement earnings for a lot of Canadians nonetheless lands below $30,000 a 12 months.
For most individuals, it’s a steep drop from their working earnings. It isn’t a cause to panic, however it’s a clear sign that the subsequent 10 years matter greater than any that got here earlier than.
Personal high quality blue-chip shares for the subsequent decade
A confirmed funding technique to outpace inflation over time is to personal high quality blue-chip dividend shares, such because the Royal Financial institution of Canada (TSX:RY).
During the last 10 years, RBC inventory has returned 410% to shareholders, after adjusting for dividend reinvestments. Regardless of these outsized returns, the Canadian financial institution inventory gives you a ahead dividend yield of two.4%. Furthermore, its annual dividend has risen from $2 per share in July 2011 to $7.04 per share in July 2026.
In fiscal Q2 of 2026 (resulted in April), RBC reported earnings of $5.5 billion, with a return on fairness of 17.2%. RBC reported document web earnings within the Capital Markets section and posted robust progress throughout Wealth Administration and Industrial Banking.
The financial institution additionally raised its quarterly dividend by $0.12, a 14% enhance from a 12 months earlier, and it repurchased 7.4 million shares for about $1.7 billion throughout the quarter. Administration additional introduced plans to purchase again as much as 45 million shares, topic to regulatory approval.
RBC’s capital place stays robust too, with a standard fairness Tier 1 ratio of 13.5%, among the many highest in Canadian banking. A powerful stability sheet supplies the financial institution with room to maintain paying and elevating its dividend throughout market cycles.
Chief Government Officer Dave McKay stated RBC generated $20.4 billion in earnings in 2025 whereas returning greater than $11 billion to shareholders via dividends and buybacks.
He additionally pointed to a goal return on fairness of 17% or increased going ahead, pushed by effectivity positive aspects and continued funding in synthetic intelligence throughout the financial institution’s operations.
For Canadians rebuilding retirement financial savings of their 50s, a steadily rising dividend paired with a enterprise that retains rising earnings is the sort of holding that may compound quietly inside a TFSA or RRSP.
I consider RBC stays one of many extra dependable core holdings for Canadians who need rising earnings alongside long-term share value appreciation, and it’s a inventory value robust consideration as a part of a catch-up technique heading into retirement.
