The Basics of Retirement Planning for Every Age

May 14, 2026

Stephanie Gilman

Retirement planning can seem daunting, especially if retirement is decades away. But the basics are actually simple: start early, stay consistent and adjust as your life changes. What does shift is how your retirement savings strategy evolves at each stage.

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The reality is that many Canadians feel unprepared for their post-work era. According to CPP Investment’s 2025 Retirement Survey, 59 per cent of Canadians worry they will outlive their savings, and over half of non-retirees say they don’t have a retirement plan.

Understanding how to plan at every age can make financial planning for retirement feel more manageable.

Your 20s: Start early and build the habit

Your 20s are less about hitting huge savings targets and more about building habits that will stick. The advantage in your early adult years isn’t income, but time. Compound growth is most effective when you start saving early.

Your 20s are a good time to focus on:

Contributing consistently to retirement accounts like an RRSP or TFSA;
Taking full advantage of employer matching programs if available; and
Avoiding high-interest debt that limits your ability to save.

Even small contributions now can grow substantially over decades, which is why building retirement savings from early adulthood is a smart move.

Your 30s: Balance growth with real life

In your 30s, life can quickly get expensive. Housing, childcare, student loans and career moves can all compete with your retirement savings goals, but it’s important to keep your eye on the future.

Here are some retirement planning tips for young professionals:

Increase your contributions as your income increases;
Automate your contributions to maintain consistent retirement savings; and
Diversify your portfolio to manage risk while still growing.

Even if you’re just getting started with your retirement planning in your 30s, you still have lots of time to build a solid nest egg.

Your 40s: Accelerate your retirement strategies

Your 40s are often peak earning years, which means they’re critical for serious retirement planning. By age 40, financial experts recommend having 3 times your annual salary saved for retirement.

In this stage of retirement planning for mid-career professionals, focus on:

Increasing contribution percentages rather than just dollar amounts;
Reviewing your investment mix to ensure it aligns with your timeline; and
Avoiding early withdrawals that can derail long-term growth.

This is where intentional financial planning for retirement can help you catch up and close any gaps from earlier years.

Your 50s: Review and refine your plan

Retirement preparation starts to feel more pressing in your 50s, and anxiety about retirement peaks during this decade.

With the average retirement age in Canada being approximately 65, most Canadians are nearing the last decade of their working years at this stage — meaning it’s the ideal time to stress-test your plan.

Key retirement strategies during your 50s include:

Maximising contributions to your retirement accounts;
Reviewing projected expenses and pension income; and
Adjusting your portfolio to reflect your current risk threshold.

Your goal at this point is clarity — knowing what you have, what you need and how to make up for the difference.

Your 60s and beyond: Turning savings into income

Now that your retirement target is quickly approaching, planning shifts from building wealth to distributing it.

The Government of Canada notes that most retirees need about 60 to 70 per cent of their pre-retirement income to maintain their standard of living. But there’s no true universal number. Your income needs depend on housing costs, lifestyle, health and whether you plan to keep working part-time.

In this stage of retirement preparation, focus on:

Deciding when to begin drawing CPP and OAS (delaying until 70 can increase your monthly amounts);
Slowly moving your investments into lower-risk options that provide steady income; and
Planning how and when you’ll withdraw money from your accounts so you don’t pay more tax than necessary.

By following these retirement preparation tips for all ages, you can adjust your plan as your life and income change so you stay on track for retirement. Whether you’re building savings in your 20s or fine-tuning pension planning in your 60s, steady action over time will turn your retirement goals into reality.

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