Are Canadians making the most of their RRSPs?

Retirement is typically the largest milestone you’ll work toward in your lifetime, so it’s important to understand how you can make the most of your savings before you need them. Many Canadians use an RRSP to help them get there, but not everyone uses the account to its fullest potential. Understanding how others are contributing can help you see where you stand and where you might have room to improve your strategy.

Here’s how Canadians are using their RRSPs, some of the most commonly held Fidelity funds and tips to help you maximize your retirement savings.  

Who’s using RRSPs in Canada?

There are roughly 20 million working Canadians, but only about 32% contribute to an RRSP. Here’s how RRSP participation changes across income levels in Canada:

Most RRSP contributors are over 35 and earn at least $80,000 a year, which lines up with when people tend to be in their highest income-earning years. At that stage, you often have more room to save, a bigger tax incentive to contribute and retirement coming up faster.

Waiting for your income to climb before prioritizing RRSP contributions, however, can mean missing out on years of potential compound growth. Putting away even small amounts in your 20s and 30s can potentially build as much momentum as larger deposits made later in life.

Why aren’t more Canadians contributing to an RRSP?

Canadians in lower income brackets may still be saving for retirement, just in a different way. Those who earn less than $80,000 are three to eight times more likely to contribute to a TFSA, which is likely because of its withdrawal flexibility and broader range of potential uses.

There are several other reasons why Canadians might not be prioritizing RRSP contributions, such as paying down debt, navigating cost of living increases or focusing on more immediate goals, like raising children or saving for a first home.

While RRSPs are designed for retirement, they can also help you with major life decisions today. Programs like the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP) allow eligible Canadians to use their RRSP savings toward goals that may come up before retirement.

How can you maximize your RRSP contributions?

Because investments in an RRSP grow tax-deferred, time is one of your greatest advantages. Here are five practical tips to help you maximize your retirement savings today:

• Start contributing early: The sooner you start, the longer your money has to grow tax-deferred within the account. Even small, regular contributions can add up meaningfully over time. Consider starting with an amount that feels manageable and revisit it as your finances change.
• Keep contributions consistent: Automating your contributions throughout the year can help you stay on track without having to think about it each time. Increasing those amounts as your salary rises can also help your savings keep pace with your income.
• Take advantage of employer matching: If your employer offers an RRSP-matching plan, signing up can help accelerate your savings without any extra effort on your part.
• Think strategically about withdrawals: RRSPs are built for retirement, so taking money out early can trigger taxes and permanently reduce your contribution room. Exceptions like buying a first home or funding education let you withdraw tax-free, as long as you pay the money back on time.
• Direct windfalls toward your RRSP: A bonus, tax refund or inheritance can be a good opportunity to top up your contributions. Just be sure not to go over your contribution limit and trigger a tax penalty.

What are some of the most commonly held funds in RRSPs?

RRSPs can hold a variety of investments, including stocks, bonds, mutual funds and ETFs. Fidelity offers a wide range of investment solutions designed to match your goals, risk tolerance and time horizon (how long you plan to stay invested).

Here are a few of the top Fidelity funds that Canadians commonly hold in their RRSPs:

Fidelity Global Balanced Portfolio

You might choose this Fund if you’re seeking a convenient blend of growth and income in a single fund. With a neutral mix of 60% equities and 40% fixed income, this multi-asset global fund leverages active asset allocation to take advantage of market opportunities while mitigating risk. If you’re looking to hold your investment for the medium- to long-term and have a low to medium risk tolerance, you could consider this fund.

Fidelity Canadian Large Cap Fund

This Fund uses a value-oriented strategy that targets companies that may be undervalued by the market. While it’s primarily focused on Canadian large cap equity securities, as the name suggests, it has the flexibility to invest up to 49% in foreign markets. This fund might be suitable if you have a medium- to long-term time horizon and medium risk tolerance.

Fidelity Canadian Growth Company Fund

You could consider this Fund if you you’re looking to gain exposure to Canadian and foreign equities, you have a medium to high risk tolerance and a medium- to long-term time horizon. The portfolio manager seeks to capitalize on positive change in fundamentals, sentiment or momentum of companies and industries.

Fidelity Global Growth Portfolio

If you’re seeking capital growth, you might consider this Fund. With a neutral mix of 85% equities and 15% fixed income, this fund employs active asset allocation to take advantage of market opportunities and mitigate risk. If you have a low to medium risk tolerance and plan to hold your investment for the medium- to long-term, this fund could be suitable for you.

Fidelity Insights Class®

This Fund seeks to identify companies, primarily in the U.S., that the portfolio managers believe offer sustained, above-average earnings growth. Put another way, the fund focuses on investing in best-of-breed firms to drive returns. If you have a medium risk tolerance and a medium- to long-term time horizon, you might consider this fund.

Source: Fidelity Investments Canada ULC. As at September 14, 2026.

The bottom line

An RRSP can be a powerful tool to help you build retirement savings, but data shows that many Canadians aren’t fully taking advantage of this account, especially earlier in their careers. Whether you’re just getting started or nearing retirement, it’s important to review your contribution strategy regularly. This can help you make the most of available tax benefits and long-term growth opportunities.

A financial advisor can help you create a plan that aligns with your retirement goals, risk tolerance and time horizon.

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