36% of Canadians near retirement have $5,000 or less saved — close the gap in 5 years with these 5 steps

If you’re approaching retirement and find yourself in a similar situation, here are five steps you can take to build your safety net over the next five years.

1. Max out your tax-advantaged accounts

If you’re close to retirement age and have a Registered Retirement Savings Plan (RRSP), you could take advantage of any carryover room you may have from previous years. That’s because any Canadian with an RRSP can accumulate unused contribution room year after year and carry it forward indefinitely — creating a significant opportunity for you to “catch up” and build your savings over the last five years of your career.

The 2026 RRSP contribution limit is 18% of your income up to $33,810, but many Canadians have far more room available because of unused carryover from previous years.

If you’re curious what your carryover might be, check your Canada Revenue Agency (CRA) account for a detailed breakdown of how much contribution room you have. You may be in a better position than you realize to add significant savings to your RRSP — and improving your chances to retire comfortably.

Finally, it’s also important to consider where you choose to put your RRSP contributions, as different accounts are tailored for different goals, whether maximizing growth or minimizing risk.

For those looking for a low-risk way to maximize the long-term growth of their contributions, for example, there are no-fee, high-interest accounts like those offered by EQ Bank. By opening a registered investment account like an RRSP Savings Account, not only do you get to avoid monthly fees and minimum balance requirements, but you also get an annual interest rate of 1.5%, so you can get the full benefit of that tax-deferred growth on your savings while taking the sting out of inflation.

Plus, for a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP Savings Account.

2. Optimize your government benefit plans before you collect

Only focusing on the size of your nest egg can make it easy to forget that you also need to plan for withdrawals. Many Canadians use a simple rule of thumb, such as Bill Bengen’s 4% rule, to plan their retirement.

But as you approach this new phase of life when you’re withdrawing from a fixed amount, it’s critical to plan for how and when you withdraw your money. For example, if you wait until you turn 70 to collect Canada Pension Plan (CPP) payments, you could significantly increase the monthly amount you receive.

That’s because even though you’re eligible to start collecting CPP at 60, the maximum monthly amount you could receive at that age is 36% less than if you were to start receiving at 65.

However, if you can wait until 70 before receiving payments, the amount increases by 8.4% each year after age 65, up to a maximum of 42% at 70 (3). Translating these percentages into real-world numbers, the average CPP payment as of January 2026 was $925.35 per month at age 65 (4), meaning that you would only receive $592.22 if you receive payments at 60 — but around $1,314 if you wait until you’re 70.

The same principle applies to collecting Old Age Security (OAS). All Canadians are eligible to start collecting OAS at age 65, but if you wait to claim at age 70, your pension amount will increase 7.2% for every year you delay after 65. This means by age 70, your monthly payment will be 36% higher than if you started collecting at age 65. For context, the maximum monthly OAS amount you could receive at age 65 is $743.05 as of 2026, whereas if you wait until 70, that amount jumps to a maximum of $1,010.55 (5).

But only delay claiming CPP and OAS if you can comfortably cover your expenses in the meantime. According to the Government of Canada website, these pensions are not meant to cover all of your financial needs in retirement, and waiting past 70 won’t increase your pensions — and may even cause you to lose out on benefits you could have earned earlier — so make sure delaying won’t break the bank (6).

3. Stress-test your portfolio against market volatility and fluctuations

Many Canadians build their retirement plans around their investment portfolio — like how much their investments might grow each year and how much they can safely withdraw.

For example, some investors use ~8% as a long-term average return for the stock market, since major market indexes like the S&P/TSX Composite have shown similar average long-term returns (7).

At the same time, financial planners might suggest using a 4% withdrawal rate as a starting point when estimating your annual withdrawal amounts in retirement. However, keep in mind that these are long-term averages rather than guarantees, and it’s always a good idea to stress-test your portfolio.

Actual market returns fluctuate annually, and your personal situation may require you to adjust your withdrawals based on other factors, such as meeting the demands of inflation and cost of living increases. In addition, you could create a backup budget or emergency fund, which can help you prepare for such market downturns and unexpected volatility to ensure your retirement savings last you through your sunset years.

However, not everyone knows how to do these things on their own, especially when it comes to calculating withdrawal rates, factoring in variables like inflation or putting together a retirement portfolio that will go the full distance. That’s why there are professionally managed portfolios that can do the work for you, building the right mix of investments from various asset classes that can help you maximize your returns and minimize risk.

In other words, you can just set it and forget it.

Whether you’re five or 15 years away from retirement, Wealthsimple Portfolios makes it easy to build a nest egg that can help reduce your reliance on government benefits later on.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re planning for a comfortable early retirement or steady growth over the long term, there’s a portfolio designed for you.

You can automate your contributions inside an RRSP or TFSA and let Wealthsimple handle the heavy lifting: managing risk, rebalancing your portfolio and reinvesting dividends.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

It’s a simple, low-fee way to stay invested without constantly watching the markets. And when you open your first account and deposit at least $1 within 30 days, you’ll get a $25 bonus.