All the while, you have a serious case of FOMO every time you check social media—all those friends who are going on fancy vacations, buying new cars and cluttering up homes. How do ordinary Canadians actually do this? And how can you go ahead and save more?
What is the average savings of Canadians in their 30s? How much it should have they saved?
Most Canadians know how to save, despite the above financial challenges and obligations. According to Statistics Canada’s 2019 figures (the most recent available), the average person under 35 has saved $9,905 for retirement (RRSPs only) and holds $27,425 in non-retirement financial assets. For Canadians aged 35 to 44, these numbers are $15,993 and $23,743, respectively.
The table below shows the average savings of people and economic households, which Statistics Canada defines as “a group of two or more people who live in the same place and are related by blood, marriage, common-law union, adoption or consanguinity.” In 2019, the average household savings rate was 2.08%.
| Financial assets, other than pensions | There are no private pension assets, only RRSPs | Private pension assets and RRSPs | |
|---|---|---|---|
| Individuals under the age of 35 | $27,425 | $9,905 | $25,263 |
| Economic family below 35 years | $105,261 | $140,662 | $60,305 |
| Individuals aged 35-44 | $23,743 | $15,993 | $39,682 |
| Economic family aged 35-44 | $131,017 | $138,488 | $399,771 |
The pandemic had a positive effect on savings; disposable income for the average Canadian will increase by an additional $1,800 in 2020, according to the Bank of Canada. That meant most Canadians were able to save an average of $5,800 that year.
Despite this silver epidemic, many Canadians do not appreciate their age groups enough. When CIBC polled Canadians in 2019 about how much money they would need in retirement, on average they predicted they would need $756,000. The actual amount you’ll need depends on many factors—to estimate your number, check out CIBC’s retirement savings calculator.
How to prioritize financial goals and commitments in your 30s
With so much happening in your 30s, it can be very challenging to save when you have a lot to pay for. After all, you may be carrying a lot of debt due to student loans, car loans or mortgages. In the third quarter of 2023, Canadians aged 26 to 35 owe an average of $17,159, while Canadians aged 36 to 45 owe $26,155, according to a report from Equifax.
Maybe debt doesn’t bother you as much, but you’re saving for a bigger goal—like a down payment on a house—and you’re feeling the strain of higher interest rates and inflation. Maybe you’d like to start a family, but you’re worried about the cost of raising a child. Or you have worked a little in the stock market and want to make a few more investments.
Whatever your situation, talking to a financial planner about your finances and priorities can help you map out a customized financial plan that addresses your current goals—as well as long-term and retirement savings strategies. This may include focusing on paying off high-interest debt, putting money aside to buy a home, buying life insurance and making sure you save each month.
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