When To Start Saving For Retirement? How To Start A Retirement Fund?


“Save money now, you’re young.” I bet you’ve heard that one before! It’s not meant to make you anxious. On the contrary, it’s supposed to be the best piece of advice you can receive in your twenties to enjoy your retirement.

The most crucial time to prepare for your future is when you’re young. There is so much pressure on young adults to plan out their futures. Perhaps you’ve just entered the workforce or have been promoted to your dream position, but yet you still need to keep thinking ahead. Welcome to adulthood! Saving for a place to live, for your everyday essentials, for your emergency fund, and even for your retirement is all part of your journey. 

The truth is a good future lies within the decisions you make as a young adult. Having a good amount socked away for your retirement early on will benefit you in the long run! So here are some quick and easy tips on how to start saving for retirement!


The earlier you start saving for your retirement, the less stressed you will be. If you begin contributing to your retirement plan later on in life, you will have less time to save, consequently leading you to contribute more every month. 

What does this mean? Well, if we take an example from the Government of Canada’s website, they give a clear explanation of how much earnings you would lose if you begin saving at an older age. 

The chart on their website demonstrates the amounts people can save in 20 years versus 10 years: 

  • If someone begins saving for 20 years before they retire, they will need to save $181 a month and this would give them $74,000 as a total amount saved. 
  • If we calculate the annual interest rate of 5% compounded on your savings, this would result in $30,960 earned on the interest. Without the interest, you would have only saved $43,440. 

They also show the difference in earnings if someone begins saving 10 years later and still retires at the same age: 

  • In order to roughly save the same amount, they would have to put away $480 a month leaving them with a total amount of $74,540. 
  • Their 5% compound interest would only amount to $16,940. That is $14,020 less due to the fact that they started saving for their retirement much later. 

Not only will they lose money, but they will also have less time to contribute to other financial accounts because they will have to take a larger sum out of their pays to contribute to their retirement. 

Need some tips on how to save? We’ve got tons of expert tips on our blog that’ll have you managing your finances like a pro in no time! 


Another factor to consider is the effects inflation will have on your savings. According to the Government of Canada’s website, inflation is the rising cost of consumer goods and services. How can this affect your savings? Well, inflation increases the costs of goods and services that you buy and this means that you can’t afford as much as before. 

Picture this: there is a 2% inflation rate per year. So, if someone saves $60,000 today, then in 20 years from now, it will cost $89,156 to afford what would cost $60,000 today.

This is something worth considering when you are planning for retirement because the earlier you begin your savings, the more your money can grow and protect you and your earnings from inflation. 

Saving for retirement doesn’t need to be complicated. Find a financial advisor you can trust and discuss options to manage your money and create a plan for you to retire at a reasonable age. Act now—your future is in your hands! 

Don’t forget to check out our blog for more tips on taking hold of your personal finances and preparing for the future! 

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