Saving and investing for retirement is tricky even in the best of times, so it’s no wonder so many people feel overwhelmed right now.

In fact, a survey from CPP Investments found that 61% of Canadians worry they’ll run out of money in retirement.

The big question on everyone’s mind? How much should I be saving for retirement? The answer really depends on when you want to retire and what kind of lifestyle you’re aiming for, but there are some general guidelines you can follow at every stage of life to help keep you on track. This blog will talk about retirement saving by age and how much you should aim to save.

20-29

Your 20s are all about building the foundation for your financial future. You’re just starting out, and while retirement might feel like a lifetime away, the choices you make now can have a huge impact down the road.

First, tackle debt head-on. Student loans and credit card balances can hold you back, so make it a priority to pay them down as quickly as possible. At the same time, start getting comfortable with budgeting. Creating a habit of tracking your income and expenses now will make managing money second nature later.

Even though money might be tight, start setting aside something for the future. Whether it’s for retirement, a home down payment, or another big goal, getting into the habit of saving early is key. One of the best ways to do this in Canada is by opening a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA), and/or a First Home Savings Account (FHSA).

Registered Retirement Savings Plan

An RRSP is a powerful tool for retirement savings. Retirement contributions reduce your taxable income, which can lead to a lower tax bill today. Plus, your investments grow tax-deferred, meaning you won’t pay taxes on gains, dividends, or interest until you withdraw the funds in retirement—when you’ll likely be in a lower tax bracket.

Tax-Free Savings Account

A TFSA is a great option for both short- and long-term savings because your investments grow tax-free, and you can withdraw money anytime without penalties. Whether you’re saving for a down payment, an emergency fund, or future investments, a TFSA gives you flexibility while letting your money grow without worrying about taxes.

Unlike an RRSP, TFSA withdrawals don’t count as taxable income, so you won’t owe anything when you take money out. Plus, any contribution room you use gets re-added the following year, meaning you never lose your ability to save. It’s a smart, flexible tool for building wealth over time.

First Home Savings Account

An FHSA combines tax-free growth with tax deductions, similar to an RRSP, making it one of the best ways to save money for a first home. Contributions lower your taxable income, and withdrawals for a home purchase are completely tax-free. Plus, if you don’t end up buying, you can transfer the funds to your RRSP without penalty.

Even if you can only contribute a small amount, starting early allows your money to grow with compound interest. The next decade can get expensive—weddings, travel, career moves, maybe even buying a home. The less debt you carry and the more you invest in your future, the more financial freedom you’ll have to take on those opportunities with confidence.

30-39

Your 30s are a busy time—family, first homes, career moves—there’s a lot to juggle. But while you’re building your life, it’s also important to start thinking seriously about your financial future.

A great goal is to have one year’s worth of income saved—either in emergency funds or investments—by the time you hit 30. By 35, aim for two years’ worth. That might sound like a lot, but remember, this includes your retirement accounts, savings, and other investments. Even if you’re not there yet, don’t stress—what matters most is consistency.

According to Statistics Canada, the average retirement savings for Canadians under 35 who own RRSPs or TFSAs is:

• $57,500 in RRSPs
• $28,000 in TFSAs

If saving large amounts feels overwhelming, start small. Even setting aside $250 a month can add up big time over the years. Thanks to compound growth, every dollar you invest now has decades to multiply.

Life in your 30s can get expensive, with mortgage payments, childcare, and career changes all competing for your paycheck. But the key is balance—enjoying today while making sure you’re setting yourself up for long-term security. The more you can save now, the less financial stress you’ll have down the road.

40-49

By your 40s, you’re well into your career and have settled into a certain standard of living—which makes it easier to picture what kind of retirement you’re working toward.

Now’s the time to get serious about savings. A good target is to have three times your annual salary saved by age 40, and four times by 45. That might sound ambitious, but with your (hopefully) higher income, you also have more room to save.

If you’re not quite there yet, don’t panic—just focus on increasing contributions where you can. The key is to stay consistent and intentional about your financial future.

50-59

Your 50s are often your peak earning years, and with kids becoming more independent and major expenses like housing starting to ease, you might finally have some financial breathing room. This is your chance to catch up if you’ve fallen behind on savings—or supercharge your progress if you’re on track.

By age 50, aim to have six times your annual income saved, and seven times by 55. That might sound like a tall order, but here’s the good news—compounding is now working in your favour. The money you’ve already invested is growing faster, meaning your nest egg will build momentum on its own.

If you’re not quite where you want to be, don’t stress—your 50s are also the time to take advantage of catch-up contributions. Canadian retirement accounts like RRSPs and TFSAs allow you to contribute extra if you have any unused room, giving you a chance to boost your savings before you leave the workforce.

60-65+

You’re almost there! Whether you’re actively retirement planning, already semi-retired, or fully stepping away from work, these years are all about fine-tuning your finances for life after a paycheck.

By age 60, a solid goal is to have nine times your annual income saved and ten times by 65, retirement age. But the truth is, there’s no one-size-fits-all number—your savings target depends on how you want to spend your retirement.

If you see yourself travelling often, dining out more, or picking up hobbies that come with price tags, you’ll need a bigger cushion. On the other hand, if your ideal retirement is more about staying close to home, enjoying simple pleasures, and keeping expenses low, you might not need as much as you think.

Now’s the time to run the numbers, adjust your investments for stability, and make sure your retirement income—from your RRSP, TFSA, CPP, OAS, workplace pension, and other savings—will cover your needs.

It’s also a good idea to think about when to start drawing Canada Pension Plan (CPP) benefits. While you can begin as early as 60, waiting until 65 or even 70 will give you larger monthly payments. And don’t forget about Old Age Security (OAS)—if your income is too high, you could face a clawback, so plan accordingly.

Most importantly—enjoy the process! After decades of hard work, you’ve earned this next chapter. Make it one that brings you freedom, security, and joy.

How much do you really need to save for retirement?

The truth is that there’s no universal magic number. You’ve probably heard the old rule of thumb that says you need $1 million to retire comfortably, but some people will need more, while others can live well on much less. It truly depends on your own circumstances.

Instead of chasing a specific dollar amount, try thinking about retirement in terms of your current lifestyle. A common guideline suggests you’ll need about 70% of your pre-retirement income to maintain a similar standard of living. This assumes you’re no longer paying a mortgage, supporting kids, commuting to work, or saving for retirement. But your personal situation—your family size, tax bracket, homeownership, lifestyle, and health—could push that number up or down.

Keep in mind though that 70% needs to keep up with inflation from now until retirement—and beyond, especially if you have a spouse who may outlive you. Estimating how much you’ll need in total can get complicated because it depends on factors like future inflation rates and investment returns, which are hard to predict.

So while the 70% of your pre-retirement salary rule is a useful reference, a better approach is to focus on saving consistently at every stage of your career rather than fixating on a single number. That way, you’ll be in the best position to adapt as your needs evolve.

Start saving for retirement with Oaken Financial today

Thinking about retirement savings but not sure where to begin? A financial advisor at Oaken Financial can help you navigate your options, from choosing the right investments to understanding asset allocation based on your age, goals, and risk tolerance.

It’s never too early—or too late—to start planning. Whether you’re just beginning to save or looking to fine-tune your strategy, getting professional guidance can make all the difference. A well-balanced portfolio can help you grow your wealth while managing risk, so your money works for you over time.

To start saving with Oaken Financial, you can book an appointment for an in-person chat, call us at 1-855-OAKEN-22 (625-3622), or if you prefer, you can open a TFSA or RSP easily in as little as five minutes.