Starting XEQT at 55: The Honest Truth About What You Can Still Do

No, 55 is not too late to start with​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ XEQT. You have about ten years of contributions before CPP and OAS become available at 65, and your money then has to last 25 to 30 more years, so a large share of it still has a long runway. A late start does not change which fund you buy. It changes how much you contribute, which accounts you fill first, and when you start your government pensions.

That is the real message of this article. For a 55-year-old, XEQT’s 0.20% MER (as of October 2026, per iShares) is the least interesting number in the plan. Account order, contribution size, and CPP timing move your retirement income far more. Everything below uses CRA limits, iShares’ published return history, and compounding math I ran myself, which you can check with the XEQT retirement calculator.

Is 55 too late to start investing in XEQT?

No. A 55-year-old who invests steadily​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ for ten years and then draws on that money across a 25 to 30 year retirement still has a long investing horizon, because you do not spend the whole pile on your 65th birthday. The money you will not touch until your late 70s has 20 or more years to grow, and that is the part XEQT is built for.

The psychological barrier is the real problem. Most people who find XEQT at 55 feel a mix of anger and grief: anger at the advisor or the savings account that got them here, and grief over the years they cannot get back. Neither feeling helps. The decade you have left is the only one you can still change, and every month spent wondering whether it is too late is a month of tax-sheltered growth you give up. I wrote about what that waiting costs in the data on waiting for the dip, and the lesson applies even more at 55.

Think of it as a sequencing problem​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ rather than a timeline problem. You decide how much to contribute, where to put it, and when to turn on CPP and OAS, in that order. The fund is the easy part.

What can XEQT actually build in the ten years before 65?

Less than the FIRE blogs imply, and​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ more than the pessimists think. If you contribute at the end of each year for ten years and XEQT earns a steady 6% to 7% annually, $500 a year grows to roughly $6,600 to $6,900. A contribution of $1,000 a year grows to about $13,200 to $13,800, and $5,000 a year reaches about $65,900 to $69,100. Contributing at the start of each year instead pushes the $5,000 figure to roughly $70,000 to $74,000.

These are illustrative numbers, not​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ forecasts. I used constant returns and no taxes, because the money sits in registered accounts.

Volatility is the other half of the​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ picture. XEQT fell 10.93% in 2022, then returned 17.05% in 2023, 24.67% in 2024, and 20.45% in 2025, according to iShares’ published figures. A single year tells you almost nothing. A poor decade could return closer to 3% a year, which would turn $5,000 a year into about $57,000 and $14,000 a year into about $160,000. A strong decade could beat my 7% case. You cannot control which one you get, but you can control the contribution.

At 55, your savings rate matters more​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ than your return. Moving from $5,000 to $14,000 a year adds more to your outcome than any fund choice, and it is the only variable fully in your control.

That is also the honest answer to the​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ person asking whether $500 a year is worth it. It is better than nothing, but it will not change your retirement. If you can find $1,000 a month, you are playing a different game.

Which account should a 55-year-old fill first?

For most late starters, the TFSA is​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ a reasonable first stop, followed by the RRSP if your income is high, with a non-registered account last. The TFSA offers tax-free growth, tax-free withdrawals, and no forced withdrawal schedule, which suits someone building late.

The catch-up opportunity is TFSA room​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ that most people overlook. As of 2026, anyone who has been a Canadian resident and 18 or older since 2009 has $109,000 of cumulative room, even if they never opened an account. If that describes you, you can contribute the whole amount at once.

The TFSA also helps in retirement. RRSPs​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ must convert to a RRIF by the end of the year you turn 71, and RRIF withdrawals are taxable and mandatory. A TFSA never forces you to take anything out, and money you pull from it does not push your income into a higher bracket, trigger the OAS clawback, or reduce the Guaranteed Income Supplement if you are a lower-income retiree.

The RRSP deserves a serious look when​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ your income is high. The deduction is worth your marginal tax rate today, and if you expect a lower bracket in retirement, you come out ahead. Your room is 18% of prior-year earned income up to the annual dollar cap, and unused room carries forward indefinitely, so check your Notice of Assessment. You can also contribute now and claim the deduction in a later, higher-income year. If you earn well at 55 and have a decade of unused room, the RRSP can reasonably come first, and you can put the refund straight into the TFSA.

Foreign withholding tax should not change​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ that decision. One widely used calculator from the Canadian Portfolio Manager blog puts XEQT’s foreign withholding drag at roughly 0.2% a year inside a registered account, which is small next to the value of the deduction or of tax-free withdrawals.

A non-registered account comes last.​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ XEQT paid about $0.72 per unit over the trailing four quarters, a yield of roughly 1.58% at a price near $45.44 as of October 2026. Those distributions arrive on a T3 slip and are taxable every year even if you reinvest them. On $100,000, that is around $1,580 of taxable income annually, plus capital gains when you eventually sell. It is not a disaster, but it is a leak worth plugging with registered room first.

One correction to a common claim: the FHSA is not automatically off limits at 55. The age limits sit well above 55, but you must be a first-time home buyer, meaning you have not lived in a home you or your spouse owned in the current year or the previous four. A long-term renter can qualify. Our FHSA guide covers the mechanics, and an unused FHSA balance can transfer to your RRSP without using up your RRSP room.

Should a 55-year-old hold 100% XEQT?

Only if you will not touch the money​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ for at least ten years and you can watch a 25% to 35% drop without selling. XEQT is 100% equities with no bond cushion, and global stock markets have fallen by well over a third in their worst bear markets. A drop like that in your early 60s, with only a few contribution years left, hurts.

The alternatives are legitimate and​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ not a sign of timidity. XGRO holds 80% equities and 20% bonds, and XBAL holds 60% equities and 40% bonds. Both carry the same 0.20% MER as XEQT (verified fund data, October 2026), so you pay nothing extra for lower volatility.

Look at what happened in 2022 before​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ assuming bonds protect you. XEQT lost 10.93%, XGRO lost 11.00%, and XBAL lost 11.08%, because bonds fell alongside stocks that year. The bond sleeve can soften deep equity crashes over time, but 2022 shows it is not a guarantee.

If you can leave the money alone for​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ ten or more years and did not panic in 2022, XEQT alone is a sound choice. If a 30% drop would make you want to sell, a split of XEQT and XGRO, or simply XGRO, is the better fund because the best portfolio is the one you actually hold. If you need income from this money within about five years, none of these funds is the right home for that portion, and a HISA or GIC ladder fits better.

The best allocation at 55 is the one​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ you will still be holding after a 30% drop. A slightly lower expected return you can live with beats a higher one you abandon at the bottom.

You can read the full case for the fund in the complete XEQT guide, and compare the growth-oriented alternative in our XEQT vs VGRO breakdown.

Should you take CPP at 60, 65, or 70?

If you are healthy and have other money​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ to live on, delaying is usually the stronger choice. CPP starts at 65 by default, and you can claim as early as 60 or as late as 70. Each month before 65 cuts your pension by 0.6%, a 36% reduction at 60, and each month after 65 raises it by 0.7%, a 42% increase at 70 (federal rules as of October 2026). Someone entitled to $1,000 a month at 65 would receive about $640 at 60 and about $1,420 at 70, indexed to inflation for life.

Planners who write about this note that​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ more than 90% of Canadians claim CPP at 65 or earlier and fewer than 5% wait until 70. Bonnie-Jeanne MacDonald of the National Institute on Ageing has shown that the average Canadian who claims at 60 instead of 70 leaves more than $100,000 of secure, inflation-protected income on the table. Waiting from 65 to 70 works out to roughly an 8.4% guaranteed annual return, which no portfolio can promise. OAS can also be deferred to 70 for a 36% boost. Full OAS requires 40 years of Canadian residence after age 18, and shorter histories receive a prorated amount.

This is where a late start with XEQT​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ and the CPP decision work together. The portfolio you build now can fund the bridge years while CPP and OAS grow, drawing from the TFSA tax-free. The larger CPP cheque then covers more of your essential spending for the last 20 years of life, so you withdraw less from your investments when markets are down.

Taking CPP early can still make sense​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ if you have no savings and need the income, have serious health concerns or a family history of early death, or carry high-interest debt. Many other healthy Canadians who start early are giving up guaranteed income they did not need to give up.

How does a 55-to-70 withdrawal plan work?

You are not planning to retire at 55,​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ which is a different problem that needs a much larger portfolio. You are planning to improve your retirement at 65 to 70 by starting now.

Until you stop working, nothing comes​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ out. After you retire, the TFSA is often the account you tap first for the bridge years, because withdrawals are tax-free and do not raise your taxable income. Suppose you have $300,000 in your TFSA at 65 and pull $30,000 a year for five years while CPP waits until 70. You spend tax-free for five years, the remaining balance keeps growing, and your CPP is permanently 42% larger. Modest RRSP withdrawals during those years can also fill the low tax brackets you would otherwise waste before RRIF minimums begin.

The right order depends on your mix of accounts. If most of your money is in an RRSP, you might draw it down earlier at low rates and save the TFSA for flexibility later. If you are a lower-income retiree who may qualify for GIS, drawing from the TFSA rather than the RRSP usually protects that benefit. The mechanics of a rules-based drawdown are in our XEQT withdrawal strategy guide, and how much XEQT you need to retire shows what number to aim for.

Keep the scale in mind. A common starting​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ point is withdrawing around 4% of the portfolio in the first year, adjusted for inflation, though Canadian research suggests a lower rate may be safer for long retirements. At 4%, $300,000 supports about $12,000 a year, which is why the bridge-and-delay approach to CPP often delivers more lifetime income than treating the portfolio as the sole source.

What should a 55-year-old do this month?

Start by checking your TFSA room in​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ CRA My Account and your RRSP room on your last Notice of Assessment, so you know how much sheltered space you actually have. Once you have those numbers, open the accounts at Wealthsimple or Questrade, both of which offer commission-free or low-cost ETF purchases, and set up automatic monthly contributions into XEQT so the decision is made once.

From there, choose between XEQT, XGRO,​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ or a split based on how you honestly behaved in 2022, not how you think you would behave. If you already hold a lump sum, the research on lump-sum investing generally favours putting it to work promptly, but staging it over several months is a reasonable compromise if a sudden drop would make you quit.

After that, review once a year. XEQT​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​‌​​​‌​​‌‌‌​‌‍‌‌​‌​‌​‌‌​‌‌​​​‌​​‌‌​​​‌‌‌‌‌​​​ rebalances itself, so your annual task is to raise your contribution when your income rises and to revisit the CPP decision as 65 approaches. A 55-year-old who automates $1,000 a month, picks a fund they can hold, and delays CPP when they can afford to is in a far stronger position than one who spends five more years searching for a better plan.

Frequently Asked Questions

Can I start investing in XEQT at 55 and still retire comfortably? Yes, if you contribute meaningfully and use your registered room. Ten years of $14,000 annual contributions grows to roughly $185,000 to $193,000 at 6% to 7% returns, and delaying CPP can lift your guaranteed income on top of that.

Is XEQT too risky for someone in their mid-50s? It can be, depending on your timeline and temperament. XEQT is 100% equities and fell 10.93% in 2022, so if you need the money within about ten years or a 30% drop would make you sell, XGRO or XBAL are better fits at the same 0.20% MER.

Should I fill my TFSA or RRSP first at 55? For most lower and moderate earners, the TFSA is a reasonable default because withdrawals are tax-free and never forced. If your income is high and you expect a lower bracket in retirement, the RRSP deduction can come first, and you can put the refund into your TFSA.

Should I take CPP at 60 or wait until 70? If you are healthy and can cover your spending from savings, waiting is usually the stronger choice. CPP drops 36% if claimed at 60 and rises 42% if claimed at 70, with both amounts adjusted for inflation for life.