Canadian Retirees' 2026 Savings Strategies

Financial advisers recommend that retirees maintain a cash reserve large enough to cover living costs during market downturns or unexpected expenses. Rather than the typical three‑to‑six‑month emergency fund, experts suggest aiming for 12 to 36 months of expenses, adjusting the target to account for one‑off costs such as home repairs or vehicle maintenance. For example, a retiree with $4,000 in monthly expenses and $2,500 of Social Security income would need $1,500 per month from cash reserves; a two‑year buffer would total $36,000, plus a possible additional $5,000‑$10,000 for aging assets.

Data from Statistics Canada show that the average TFSA balance for Canadians aged 45‑49 is about $21,000, while the average RRSP balance for those aged 45‑54 is roughly $150,000. Many in this age group have significant unused contribution room, offering a catch‑up opportunity. Advisors highlight dividend‑paying stocks such as Canadian Utilities (CU), which has raised its dividend for 54 consecutive years, as a low‑risk option to grow savings tax‑free within TFSA and RRSP accounts.