How Much Money Do I Need to Retire? Start Saving with Saven's Registered Retirement Savings Plan

How Much Money Do I Need to Retire? Start Saving with Saven’s Registered Retirement Savings Plan (RRSP)

Retirement might feel far off, but the earlier you start planning, the more freedom you’ll have to enjoy the life you envision. Whether your dream is to travel the world, spend more time with family, or simply slow down and savour life, building a solid retirement plan today can help you get there. The best part? You don’t need to be a financial expert. With a few smart strategies and the right financial partner, you can start saving confidently and watch your money grow.

Key Takeaways

Visualize Your Retirement

Start by imagining your ideal retirement. Are you relaxing at a lakeside cottage? Volunteering in your community? Traveling to places you’ve always dreamed of? Having a clear picture of your future helps you stay motivated and make intentional financial decisions today. It’s not just about numbers; it’s about creating a life you’ll love.

Retirement typically unfolds in three stages:

A modest retirement may only require 50% of your pre-retirement income, but an active lifestyle could demand 70% or more. Understanding the distinct phases of retirement helps ensure your savings match your evolving needs:.

Thoughtful planning across these stages helps you maintain financial confidence and lifestyle flexibility throughout retirement.

Use a Retirement Calculator

Once you’ve imagined your ideal retirement lifestyle, the next step is to estimate how much you’ll need to save. Online retirement calculators can help you:

With inflation and changing interest rates reshaping financial landscapes, many Canadians are rethinking their retirement strategies. Now more than ever, smart and strategic saving is essential.

Invest 15% of Your Income

A straightforward yet effective guideline: aim to invest 15% of your gross income toward retirement. Once you’re free of consumer debt (excluding your mortgage) and have built an emergency fund, retirement saving should become a top financial priority.

Time and compound interest are your greatest allies, the earlier you begin, the easier it is to reach your goals.

Maximize Employer Contributions

Taking full advantage of employer-sponsored retirement plans can significantly boost your savings. If your employer offers a group RRSP or pension plan with matching contributions, be sure to contribute enough to receive the full match, it’s essentially free money. In addition to matching programs, many employers provide defined contribution or defined benefit plans. These workplace plans can reduce the amount you need to save independently and serve as valuable components of your overall retirement strategy.

Open a TFSA or RRSP GICs

Tax-advantaged accounts are essential tools for building long-term retirement wealth. A Saven TFSAs offers tax-free growth and flexible withdrawals, making it ideal for both short- and long-term goals. A Saven RRSP GIC , on the other hand, provides immediate tax deductions and tax-deferred investment growth, helping you reduce your taxable income while saving for the future. With a Saven RRSP, you benefit from consistently high interest rates, no monthly fees, and convenient features like automated contributions and easy access. You can contribute up to 18% of your earned income annually to an RRSP, and any unused room can be carried forward. If you're part of a defined benefit pension plan, your RRSP contribution room may be reduced accordingly.

Look Beyond Registered Accounts

While TFSAs and RRSPs are powerful tools, it’s also important to consider other types of assets that can support your retirement goals. Real estate investments, business ownership, and unregistered savings can all play a role in diversifying your financial future. These additional assets can provide income, growth, and stability, helping you build a more resilient retirement plan.

Diversify Your Investments

Diversification within your TFSAs or RRSPs is key to managing risk and optimizing returns. By spreading your investments across different asset classes such as growth funds, income funds, international ETFs, and more aggressive options, you can better navigate market fluctuations and maintain a realistic expected rate of return. A well-balanced portfolio helps ensure your retirement projections remain achievable, even in uncertain economic conditions.

Get Professional Guidance

A financial advisor can be an invaluable resource in your retirement planning journey. They can help you select a reasonable return assumption, build a portfolio that aligns with your goals, and adjust your strategy as your life evolves. With expert guidance and a diversified approach, you’ll be better equipped to turn your retirement vision into reality.

Automate Your Contributions

Consistency is one of the most powerful habits in retirement planning. By setting up automatic transfers to your Saven RRSPs or other High-Interest Savings Accounts, you ensure regular contributions without having to think about it. This simple step helps you stay disciplined, build momentum, and make saving a seamless part of your financial routine.

Don’t Spend Your Raises

When your income increases, it’s natural to feel tempted to upgrade your lifestyle. However, redirecting that extra income toward your retirement savings can have a far greater long-term impact. Even a modest increase in contributions can significantly boost your retirement fund over time, thanks to the power of compound growth.

Stick to a Monthly Budget and Cut Non-Essential Spending

Creating and sticking to a monthly budget is essential for tracking your spending, identifying areas to cut back, and prioritizing your financial goals. Small adjustments like reducing takeout meals or canceling unused subscription services can free up funds for your retirement savings. Take a close look at your monthly expenses.

Review Insurance Policies and Sell Unused Items

You may be overpaying for home, auto, or life insurance without realizing it. Reviewing your policies and shopping around for better rates can uncover savings that you can redirect into your retirement accounts. Additionally, decluttering your home can provide a financial boost. Selling gently used items online or hosting a garage sale is a great way to turn unused belongings into extra cash for your retirement fund.

Pause Unused Memberships and Avoid Lifestyle Creep

If you’re not actively using your gym membership or streaming services, consider pausing or canceling them. Redirecting those funds into your Saven TFSA GIC and RRSP GIC can help grow your savings more effectively. As your income grows, it’s easy to fall into the trap of spending more. But by maintaining your current lifestyle and investing in the difference, you can supercharge your retirement savings. It’s all about making intentional choices that support your long-term goals.

Consider Real Estate Carefully

Real estate can be a smart way to diversify your retirement portfolio, but it requires careful planning. If you’re financially stable, consider purchasing property outright, maintaining a separate emergency fund, and ensuring the investment aligns with your overall retirement strategy. Real estate can offer long-term growth and income, but it’s important to proceed with caution.

Open a Non-Registered Investment Account

Once you’ve maximized your RRSP and TFSA contributions, opening a non-registered investment account can help you continue growing your wealth. These accounts offer flexibility and allow you to invest beyond the limits of registered plans, giving you more options to build your retirement savings.

Grow Your Retirement with Saven Financial

At Saven Financial, we’re committed to helping Canadians build a secure and rewarding financial future. Our High-Interest Savings Accounts and GICs offer consistently competitive rates, making it easier to raise your money with confidence. Whether you’re just beginning your retirement journey or looking to maximize your Saven RRSP contributions, we provide flexible options, secure savings tools, high-performing accounts, no monthly fees, easy online access, and member-first service. Start building your retirement plan today and let your money work as hard as you do.

Visit SavenFinancial.ca to open your Saven TFSA, RRSP or other High-Interest Savings Account today.