How Early Should I Start Planning for Retirement?

Let’s face it — when you’re in your 20s or 30s, retirement sounds like something your parents should worry about, not you. But here’s the twist: the earlier you start planning, the easier and more flexible retirement becomes.

Think of retirement planning like planting a tree. You don’t wait until you need shade to put the seed in the ground, right? The same goes for your finances. If you want to retire comfortably — maybe even early — it pays to start as soon as possible.

This blog dives into when you should start planning for retirement, what it looks like at different life stages, and how to set yourself up for success whether you’re in Canada or the U.S.

Starting early is more than just “smart” — it’s strategic.

Here’s a quick example:

• Start saving $200/month at age 25 with 7% annual return = $520,000 by age 65

• Start the same at age 35 = $245,000 by age 65

That’s less than half the return for starting just 10 years later — ouch.

Universal and Whole life insurances are also a great vehicle to build a great retirement, and we can see the magic or couponed interest in them as well specially when we start early. There are 2 important factors for applying in either of them:

• Entry Age

• Good Health

When you start early, you can contribute smaller amounts over time. That’s way less stressful than scrambling to catch up in your 50s.

Want to retire early? Travel the world? Start a business in retirement? These dreams are only realistic if you give yourself time to plan and build toward them.

Even if you’re still paying off student loans, this is the golden time to begin.

• Open an TFSA, RRSP (Canada) or Roth IRA/401(k) (U.S.)

• Start with anything — even $50/month matters

• Focus on building the habit, not perfection

• Invest on Universal or Whole Life insurances

You’ve likely got a career going, maybe even a family.

• Increase your monthly contributions as your income rises in both Investments & Life Insurances

• Get clear on your target retirement age

• Don’t leave employer-matching contributions on the table (free money alert!)

• Start your self-employee business

Time to catch up if you’re behind — but all is not lost.

• Maximize tax-advantaged accounts & your life insurance

• Consider Will & Estate Planning

• Create a full financial strategy, not just savings

Closer to retirement? It’s time to lock things in.

• Focus on preserving wealth, not just growing it

• Analyze pensions, government benefits (like CPP, OAS, or Social Security)

• Meet with your financial advisor to finalize your plan

✅ Automate your savings: Set it and forget it — your future self will thank you.

✅ Increase contributions with each raise: Lifestyle inflation is real, but savings inflation should be, too.

✅ Diversify your retirement accounts: Use RRSPs, TFSAs, Roth IRAs, and 401(k)s strategically.

✅ Avoid dipping into retirement funds early: Early withdrawals = taxes + penalties + lost growth.

✅ Talk to a financial professional: You don’t have to figure it all out on your own.

If you’ve been wondering when to start planning for retirement, here’s your answer: as soon as possible. Whether you’re 21 or 51, taking action today will make a huge difference tomorrow.

The earlier you start, the more options you’ll have — to retire early, retire well, or even change your life altogether. And if you’re late to the game, don’t stress. You can still build a powerful plan.

I help people across Canada and the U.S. make smarter financial decisions every day — and retirement is a big one. Whether you’re just starting out or trying to catch up, let’s put a strategy in place that makes sense for you.

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