Sept. 8: BEST FROM THE BLOGOSPHERE

September 8, 2025

Six ways to start saving for retirement – at age 50

So you’ve hit the half-century mark – hooray for you! Many best wishes, and there are many good years ahead of you.

But what if you haven’t yet started saving for retirement? Can you still catch up?

According to an article by Daniel Liberto, writing for Investopedia, the answer is yes. His article outlines six ways you can get into the savings game, even starting late.

We have Canadianized some of the ideas in this U.S.-facing article.

First, he suggests that if you can, you should try to maximize contributions to government retirement savings programs. Here in Canada, this generally refers to registered retirement savings plans (RRSPs) and Tax Free Savings Accounts – if you have room in either, fill it.

Secondly, if you have any sort of workplace retirement savings program, be sure you are registered in it and contributing to the max. Such plans, he writes, often provide “matching funds from your employer.”

When investing for retirement, Liberto writes, “avoid being too aggressive or too conservative.”

“How you invest your money is equally important. Starting at 50 doesn’t mean you should choose overly aggressive and speculative investments. You’ll want to invest sensibly, which could mean waiting a bit longer to retire if you’re struggling to hit targets,” he explains.

Your savings target needs to factor in inflation – the idea that the cost of most things today will be a lot higher in the future, even if inflation is relatively low.

“Remember to consider inflation when estimating how much you’ll need to live on. Today’s money will be worth less when you retire, so your savings targets should account for this reality,” he writes.

If you are late to the savings game, you should consider deferring the start of government benefits (here, meaning the Canada Pension Plan and Old Age Security) until after age 70. “The longer you can hold off before reaching 70, the higher your monthly payments will be. This strategy can significantly boost your retirement income, which is especially important if you’re starting to save later in life,” he adds.

Finally, understand fully the tax rules about Canadian retirement income. Most of us will get many streams of retirement income, and all have slightly different tax impacts. As well, if you are retired and converting an RRSP to a registered retirement income fund (RRIF) there are taxes on mandatory withdrawals from the RRIF. It is best to consult a professional for tax advice regarding your retirement income sources and strategies.

If you don’t have a workplace pension plan to contribute to, you do have a great option for retirement savings via the Saskatchewan Pension Plan. SPP is open to any Canadian who has available RRSP room. You can decide how much to contribute each year – any amount up to your personal RRSP contribution limit.

SPP also allows you to transfer in any amount from other RRSPs. If you have several RRSPs (non-locked in), perhaps from past workplace programs, you can consolidate them all in SPP.

Check out SPP today!

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Investopedia

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