No retirement savings at 40? How Canadians are catching up in 2025

You’ve built a life—maybe a family, a career, a home. You’re working hard, managing bills, and trying to enjoy the present. But somewhere along the way, the years passed faster than expected. And now here you are, in your 40s, asking yourself a question that feels heavier with each passing year:

“What if I’m not ready for retirement?”

If you feel behind, unsure, or even a little overwhelmed—you’re not the only one. In fact, more and more Canadians in their 40s are coming to terms with the reality that they haven’t saved enough. Some haven’t saved at all. But here’s the truth that matters most: there’s still time to catch up.

This article isn’t about guilt or regret. It’s about moving forward. We’re going to take a realistic look at what’s holding many Gen Xers and older millennials back from retirement savings—and what Canadians are doing in 2025 to change their future. With the right strategies, clear priorities, and a mindset shift, you can build a retirement plan that works for you, even if you’re starting late.

Let’s take a closer look at where things stand and how you can take the first step today.

The harsh truth: many Canadians in their 40s are behind

You’re far from alone. According to a 2024 CIBC survey:

• 32% of Canadians aged 40–54 have less than $100,000 in retirement savings

• 19% have nothing saved at all

To live comfortably in retirement, most experts suggest aiming for about $1.2 million in savings. That sounds overwhelming—but it’s not about hitting that number overnight. It’s about understanding where you stand and what steps to take next.

So yes—the situation is serious. But the good news? Canadians are waking up, and they’re doing something about it.

Why so many are behind: it’s not just you

If you’re wondering how you got here, it’s probably a mix of these factors:

The cost of living is brutal

Housing prices are through the roof, especially in cities like Toronto, Vancouver, and Victoria. Even renting isn’t cheap. Add in groceries, gas, daycare, and it’s easy to see why saving takes a back seat.

Wages aren’t keeping up

While living costs rise every year, salaries haven’t grown at the same pace. Many people feel like they’re running in place financially.

Supporting two generations

If you’re helping your kids and your aging parents at the same time, retirement planning probably feels like a luxury you can’t afford right now.

No one taught us this stuff

Let’s be real: most of us weren’t taught about TFSAs or compound interest in high school. Many of us didn’t even think about retirement until it felt like it might be too late.

But here’s the thing: it’s not too late. You just need a plan—and a little motivation.

How Canadians in their 40s are catching up (and you can too)

If you’re ready to take control, here are the steps that Canadians are using in 2025 to fast-track their financial future:

Step 1: get real about the numbers

Before you do anything else, figure out where you stand. Use tools like the Government of Canada Retirement Calculator or chat with a financial advisor.

Real story:
Sarah, 42, from Calgary, finally sat down with a free online calculator. It told her she’d need to work until 74. That was the push she needed. She made a plan, cut some expenses, and started saving $1,000 a month.

Step 2: automate TFSA and RRSP contributions

These two accounts are your best friends for long-term savings.

• RRSP = reduces your taxes today, helps build future retirement income

• TFSA = flexible, tax-free growth—great for mid-term goals or retirement

Don’t worry if you can’t max them out. Even $100 or $200 per month adds up fast, especially when invested wisely.

Step 3: work smarter, not just longer

Delaying retirement is one option, but it doesn’t mean staying in a stressful 9-to-5 forever. Many Canadians are choosing phased retirement—working part-time while collecting partial pension or investment income.

It’s all about balance.

Step 4: invest with intention

With only 20–25 years until retirement, investing wisely is key. Many people in their 40s are moving away from cash-heavy savings accounts and into diversified portfolios.

Suggested allocation at age 45:

Low-fee ETFs and robo-advisors like Wealthsimple make this easy—even if you’re new to investing.

Step 5: cut back—without feeling deprived

You don’t need to live like a monk. But small changes can free up money for saving:

• Cancel unused subscriptions

• Cook more meals at home

• Move to a lower-cost neighborhood

• Consider renting out part of your home

Step 6: find extra income streams

Side hustles are more common than ever. Whether it’s freelancing, consulting, tutoring, or selling handmade items, even a few hundred dollars extra a month can fast-track your savings.

Case story:
David, 47, from Halifax, started offering part-time coaching online. After a year, he was bringing in $1,500/month—all going straight into his RRSP.

Rewriting retirement: it’s not just about “quitting work”

Many Gen Xers and millennials are changing how they view retirement. For some, it’s not about quitting work altogether—it’s about having the freedom to choose how and when to work.

That shift in mindset is powerful. It helps you focus on financial independence, not just a retirement date.

Helpful tools for Canadians getting back on track

Here are some great resources to explore:

• Wealthsimple – TFSAs, RRSPs, robo-advisor investing

• MoneySense – Canadian financial education hub

• Canadian Financial Summit – free annual event

You still have time—but you have to start now

Being in your 40s without a retirement plan can feel like standing at the base of a mountain. But you’re not starting from zero. You’ve got income, life experience, and the ability to make smart choices.

Yes, it’ll take effort. Yes, you’ll have to prioritize. But the steps are clear, and the payoff—freedom, peace of mind, and a future you feel good about—is absolutely worth it.

Ready to get started?

Start by checking your retirement savings today. Then, set up that first monthly contribution—even if it’s just $100. From there, build your plan, take control, and move forward.

You’ve got this. And your future self will thank you for starting now.