Retirement punishes procrastination more than any other financial goal. $1 saved at 25 grows to ~$10 at 65 at 6% return. The same $1 saved at 45 grows to only ~$3.20.
The Compound Interest Reality
Sarah contributes $500/month starting age 25 at 7% return. By 65: ~$1.32 million. James starts at 35, same amount. By 65: ~$610,000. Starting 10 years later costs $710,000 in wealth despite contributing $60,000 more.
Canada's Three Retirement Pillars
Government: CPP/QPP (max ~$1,364/month at 65), OAS (~$700/month) — both can be deferred to 70 for significantly higher payments. Employer: Maximize pension/RRSP matching — it's an immediate 50–100% guaranteed return. Personal: RRSP, TFSA, FHSA.
💡 The 4% Rule: A $1M portfolio supports ~$40,000/year in withdrawals for 30 years. Combined with CPP/QPP (~$15K) and OAS (~$8.4K), most retirees with $700K–$1.2M achieve comfortable retirement income.
Decade-by-Decade Checklist
- 20s: Start TFSA, 80%+ equities, build emergency fund
- 30s: Maximize RRSP, consider spousal RRSP, review insurance
- 40s: Shift to 70/30, max all registered accounts
- 50s: 60/40 portfolio, create detailed retirement income plan
- 60s: Strategize CPP/OAS timing, begin RRIF planning