Saturday, January 9, 2010

Average RRSP Holdings of Canadians

Statscan produced a report called the Wealth of Canadians (PDF). The report shows the level of preparedness of Canadians for retirement. It is based on the amount of retirement savings Canadians have put aside for their golden years.

This is a list of confusing facts and figures compiled on retirement savings in Canada. Feel free to analyze and create a create a comprehensive report of what all these numbers mean. The bottom line is Canadians have manged to save about $37,000 into their personal retirement accounts while contributing into and creating public sector employee plans worth and average of $163,000 per employee.

It appears that Canadian taxpayers are in deep doo-doo.  

RRSP Average Holdings for Canadians( for the 58% of Canadians who have them)
Age 35 - $22,500
Age 35-45 - $49,100
Age 45-54 - $ 90,300
Age 55-64 - $124,500
Age 65 and Older - $ 108,200

All age average of employer funded pension assets - $ 160,000

Based on the Average Wages of Canadians it appears most Canadians are woefully prepare for retirement. The average working wage in Canada is slightly over $40,000 per year.

Total value of employer pension plans $826.5 billion, loss of $128 Billion from a year previous.
Total value of public sector pension funds $ 555 Billion

Annual contributions into pension plans in Canada $ 38.8 Billion
Considering that public sector pensions hold 67% of all pension funds, if the contributions levels are the same Canadian taxpayers funded about $25Billion into public sector pension funds last year.

Public sector pensions make up over 65% all employer-sponsored pension assets. 
Public sector workers make up 20% of the workforce

Total value of Canada's infrastructure - $286.2 billion
Including highways and roads, bridges and overpasses, water supply systems, wastewater treatment facilities and sanitary and storm sewers
Taxpayers have funded a total of $ 269 Billion more into public sector employee pension plans than they have contributed into Canada's infrastructure

Average annual contribution into public sector pension plans $ 7,269 per employee. Based on estimated annual contributions of $ 25 Billion for 3.4 million public sector employees.  
Average Canadian contribution into RRSP's - $2,650

Assets in public sector pension plans in 1990 - $111 Billion
Assets in public sector pension plans in 2008 - $555.7 billion
Growth in assets in public sector plans - 500%
Percentage of workforce - 20%
Average per worker $163,000

Assets in individual registered savings plans in 1990 - $157 billion 
Assets in individual registered savings plans in 2008 - $631 billion
Growth in assets - 400%
Percentage of workforce 80%
Average per worker $ 37,000

I hope my analysis of these numbers is accurate. Please let me know if you see anything out of place.

1 comment:

  1. Personally, I think that everyone should aspire to hit their RRSP limit if they can - especially when you're young. This sets the stage for compounding down the road. If you start saving at the same rate when you're 18 instead of when you're 22, your final cash can be as much as doubled.