Retirement savings advice: How to catch up and secure your future

Personal finance contributor Christopher Liew offers practical advice for Canadians feeling anxious about their retirement savings amid rising living costs and debt. (Getty Images / 78image)

Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.

Are you growing uneasy about your retirement savings?

Rising living costs, high-interest debt, inflation, and other economic factors have delayed financial planning for many hard-working professionals, leaving them wondering how they’ll be able to achieve their eventual retirement goals.

Whether you started saving later in your career or found yourself unable to contribute as much as you’d like in recent years, the good news is that you can regain ground and catch up.

Saving for retirement is becoming more difficult

As more Canadian workers find themselves living paycheque to paycheque and sinking into increasing consumer debt, the idea of a traditional retirement is fading away.

Sixty-one per cent of Canadians currently fear that they’ll outlive their retirement funds, according to a late 2024 study from CPP Investments. Additionally, of those surveyed, only 49 per cent believe they’re currently saving enough to reach their long‐term retirement goals.

Healthcare of Ontario Pension Plan’s (HOOPP) 2025 Canadian Retirement Survey revealed that 59 per cent of working participants believe they’ll never be able to retire based on their current rate of savings, with many planning to rely on the sale of their home to be able to fund their future retirement.

HOOPP also mentions in a 2024 study a shocking stat: four in 10 Canadians have less than $5,000 in savings, which I explain in depth in this video about the growing retirement crisis in Canada.

Tips to catch up on your retirement savings

If your savings aren’t where you’d like them to be, you’re not alone. Realizing the problem is only the first step. Next, you need to develop an action plan to start catching up. This may involve making a few sacrifices, like picking up extra work or cutting down on discretionary spending.

Once you’re able to create a consistent pattern of saving, though, your mediocre savings will eventually snowball into something worthwhile.

1. Reassess your retirement goals and timeline

Before you can get back on track with your retirement savings, you need to know exactly where you stand. Start by reassessing your retirement goals and calculate how much you think you’ll need to maintain your current lifestyle expenses (or your goal lifestyle).

Some retirees entertain the idea of living more comfortably and luxuriously in their retirement, while others may plan to downsize into a smaller home and live more humbly. While both of these are viable options, you should begin putting together an estimated monthly/annual expense list of your desired retirement lifestyle.

During this process, you may discover that small adjustments like delaying retirement by a few years, downsizing your home, or working part-time through retirement can significantly improve your outlook.

2. Find ways to grow your income

While cutting expenses is a common financial tip, growing your income can often have a much bigger impact on your long-term financial health.

Instead of focusing solely on where you can trim spending, consider how you might bring in more money. Even an extra $500 a month adds up to $6,000 a year — enough to fully fund your TFSA, contribute to your RRSP, or pay down debt faster.

Here are some questions to ask yourself:

• Can I take on a freelance project or part-time contract?
• Is there a skill I could turn into a small business or consulting service?
• Could I ask for a raise or apply for a higher-paying role?
• Have I been putting off an investment or side hustle idea?

Increasing your income gives you more flexibility. It lets you improve your financial future without needing to shrink your lifestyle. When you focus on earning more, you open the door to new opportunities and not just new restrictions.

3. Make contributions non-negotiable

Another way to simplify your retirement savings is to make it non-negotiable. Set up automatic direct deposits into your retirement savings/investments on each payday. With this method, the money comes out automatically, before you ever have a chance to think about it.

This method will also force you to better manage your discretionary spending and living expenses, as you’ll have to make do with what’s left over.

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4. Find a way to deal with high-interest debt

Credit card interest rates are astronomical today. If you’ve maxed out your cards, chances are that you’re flushing hundreds of extra dollars each month down the drain on interest fees alone, with very little going toward your card’s principal balance.

One of the best solutions here is to apply for a lower-interest credit card debt consolidation loan. These loans will allow you to combine your high-interest debt into a single lower-interest loan. This will save you on interest payments in the long run, leaving you with more money that you can divert into your retirement savings.

5. Maximize your tax-advantaged account contributions

Finding ways to reduce the amount of taxes you pay each year is a great way to end up with additional funds you can put toward your retirement. I encourage people to maximize their annual contributions to their TFSA, and to use it as a source of future retirement income.

If you have a job that matches RRSP contributions, this is another great way to build your retirement savings as well, since it’s essentially free money.

Final thoughts

There are two main ways to start saving more: decreasing the amount you spend and/or increasing the amount you earn.

Picking up a part-time side hustle or asking for a raise are great ways to come up with extra money that you can invest. At the same time, finding ways to reduce your lifestyle expenses, limit some of your discretionary spending, or lower your high-interest debt will also leave you with money left over.

The key is to find a balance of earning and saving more that fits into your current lifestyle and allows you to stay on track with your goals.