Average Retirement Savings for 70-Year-Olds: What You Should Have

You hit 70. The kids are gone, the mortgage is paid off (hopefully), and you’re finally thinking about what’s left in the bank. But here’s the uncomfortable truth most people ignore: the average retirement savings for someone your age might be way less than you think. Or maybe it’s more. It depends on where you live, how long you’ve worked, and whether you actually stuck to a plan or just hoped things would work out.

Let’s cut through the noise. If you’re looking for a single number that says "this is enough," you won’t find one. Financial advisors hate giving hard numbers because life isn’t math class. But data exists. In Canada, where I’m writing from, the picture looks different than in the US or the UK. We have the Canada Pension Plan (CPP) and Old Age Security (OAS) doing heavy lifting, which changes how much cash you need sitting in a Tax-Free Savings Account (TFSA) or Registered Retirement Income Fund (RRIF).

The Reality Check: Averages vs. Medians

First, stop looking at averages. They lie. If Bill Gates walks into a bar, the average net worth of everyone in the room skyrockets, but nobody else got richer. The same thing happens with retirement savings. High earners skew the average upward, making the typical person feel like they’re failing when they’re actually right on track.

In Canada, Statistics Canada reports that the median household net worth for those aged 65-74 hovers around $800,000 to $900,000 CAD. But that includes home equity. If you strip out the house-because you can’t buy groceries with bricks-the liquid savings drop significantly. For many seniors, accessible cash sits between $100,000 and $200,000. That sounds scary until you realize that’s often supplemented by guaranteed government income.

What Does "Enough" Actually Look Like?

So, do you need $1 million? Probably not. Do you need $50,000? Maybe, if you own your home outright and have no debt. The magic number depends on your annual spending needs minus your guaranteed income.

Here’s a quick formula I use with clients in Toronto:

• Calculate your annual living expenses (food, utilities, travel, healthcare copays).
• Subtract your guaranteed income (CPP + OAS + any defined benefit pension).
• Multiply the gap by 25. That’s your target portfolio size using the 4% rule.

For example, if you spend $50,000 a year and receive $25,000 from CPP/OAS, you have a $25,000 gap. Multiply by 25, and you need $625,000 in investments. If you only have $200,000, you’re not doomed-you just need to adjust your lifestyle or work part-time.

Regional Differences: Why Location Matters

Savings habits vary wildly by province. In Alberta, higher wages historically meant larger RRSP balances, but lower housing costs in some areas offset the need for massive liquidity. In Ontario and British Columbia, skyrocketing real estate values mean many seniors are "house rich, cash poor." They own homes worth $1.5 million but struggle to pay property taxes without tapping into lines of credit.

If you live in a high-cost area, your definition of "average savings" must include home equity as a potential resource. Reverse mortgages or selling down to a smaller condo can convert that brick-and-mortar wealth into usable cash flow later in life.

How Much Do Seniors Typically Withdraw?

Most financial planners suggest withdrawing no more than 4% of your portfolio annually. However, recent inflation spikes have forced many retirees to dip into principal faster than planned. If you’re 70 and seeing your savings shrink despite careful budgeting, check your investment mix. Too much cash in low-interest accounts loses value to inflation; too much in volatile stocks risks a market crash wiping out your income stream.

Government Benefits Are Part of Your "Savings"

A lot of people forget that CPP and OAS aren’t just bonuses-they’re core components of retirement security. As of 2026, the maximum monthly CPP payment for new recipients at age 65 is roughly $1,400 CAD. OAS adds another $700-$800 CAD depending on residency years and clawback rules.

Together, these two streams can provide over $25,000 a year tax-free-ish (after basic deductions). If you delay taking CPP until age 70, you get a permanent 42% boost compared to taking it at 65. That’s free money most people leave on the table because they want immediate access to cash. At 70, though, you’re likely already receiving these payments, so factor them into your total "income," not just your bank balance.

Pitfalls That Drain Savings After 70

It’s not just about how much you saved-it’s about how fast you spend it. Three common traps hit seniors hard:

1. Healthcare Costs: Even with provincial coverage, dental, vision, physiotherapy, and prescription drugs add up. Budget an extra $3,000-$5,000 annually for out-of-pocket medical expenses.
2. Caregiving Expenses: If you or your spouse needs assisted living, costs can jump to $4,000+ per month. This wipes out savings quickly if not planned for.
3. Helping Family: Many grandparents quietly subsidize adult children or grandchildren. Setting boundaries early protects your nest egg.

I’ve seen couples retire comfortably with $500,000, then drain it in five years paying for a parent’s care or helping their son buy a house. Don’t let generosity bankrupt your retirement.

Is Your Savings Average Good Enough?

If you’re 70 and have less than $100,000 in liquid savings, don’t panic. Check your debt. If you’re debt-free and own your home, you’re better off than someone with $300,000 in savings but a $200,000 mortgage. Homeownership reduces fixed costs dramatically.

Conversely, if you have $500,000 in savings but high recurring debts and no home equity, you’re in a tighter spot. Assets matter, but cash flow matters more. Can you cover monthly bills without selling assets during a market dip? That’s the real test.

Adjusting Your Strategy at 70

You don’t need to overhaul everything, but small tweaks help. Move towards a balanced portfolio-maybe 40% equities, 60% bonds/cash-to reduce volatility. Keep 1-2 years of expenses in a high-interest savings account so you never have to sell stocks when markets are down.

Also, review your will and power of attorney documents. Ensure beneficiaries on your TFSA and RRIF are updated. These non-probate transfers save heirs time and legal fees, preserving more of your legacy.

Frequently Asked Questions