It’s Not Too Late to Catch Up on Retirement Savings

You can still catch up on retirement – start today, automate savings, and use a smart mix of growth and income investments to accelerate progress.

Key Points
  • Start now and automate contributions—consistent saving and compounding matter more than perfect timing.
  • Balance growth and income: mix banks, global ETFs, and renewables for stability, diversification, and inflation protection.
  • Higher earnings in your 40s and 50s let you accelerate saving; reinvest returns to close the retirement gap.

It’s easy to feel like time has slipped away when it comes to retirement savings. Maybe the market feels too high, your balance looks too small, or life just got in the way. But the truth is, it’s rarely too late to catch up. What matters most now isn’t where you started, but how intentionally you move forward. Even starting in your 40s or 50s, you still have powerful tools that can transform your outlook. Time may not be infinite, but steady, strategic effort can close more of the gap than most people realize.

Middle aged man drinks coffee

Source: Getty Images

Getting started

Investing doesn’t rely solely on time; it also depends on consistency and return. The earlier years matter, but the later ones tend to coincide with peak earning power. That gives you room to save larger amounts, shelter more income, and take advantage of compounding from a higher base. The key is to start today and automate the process so your plan runs without daily effort.

Another advantage later in life is focus. When you’re younger, saving can feel abstract. Yet by midlife, it becomes urgent. That urgency creates clarity. You can reassess spending, downsize unnecessary costs, or redirect bonuses or tax refunds straight into investments. It’s also an ideal time to evaluate your asset mix. Balance equities for growth with stable dividend or fixed-income options that can later fund withdrawals.

It’s also worth remembering that the market itself rewards persistence, not perfection. Missing earlier bull runs doesn’t mean you’ve missed your shot. Compounding works as long as you stay invested and reinvest your returns. In Canada, many retirees keep a large portion of their wealth in dividend-paying stocks or exchange-traded funds (ETF) that continue to grow and distribute income well into their 70s. In short, people who start later often succeed because they take their goals seriously and stay consistent.

A winning mix

When you’re playing catch-up on retirement savings, the key is finding stocks and ETFs that combine steady growth, reliable income, and global diversification. Three TSX-listed investments that fit that bill beautifully are Royal Bank of Canada (TSX: RY), Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC), and Brookfield Renewable Partners (TSX: BEP.UN).

Royal Bank of Canada is a cornerstone holding for anyone looking to rebuild or strengthen a retirement portfolio. As Canada’s largest bank, it earns consistent profits through every economic cycle, driven by its mix of retail banking, wealth management, and capital markets. RY’s dividend, which currently yields around 3%, has grown steadily for decades and has weathered everything from recessions to rate shocks. Its global reach adds stability while providing growth exposure beyond Canada’s borders. All this makes Royal Bank an ideal anchor investment.

VXC complements RY with instant global diversification. Many Canadians unintentionally overweight domestic stocks, which can limit returns and add risk. VXC solves that problem by spreading your money across thousands of international companies. It includes tech leaders, global manufacturers, and emerging-market growth names, all under one low-fee ETF. For retirement savers short on time, it’s a way to get global exposure without handpicking stocks or worrying about market timing.

BEP adds something extra: inflation-resistant income and exposure to the energy transition. As one of the world’s largest renewable power operators, BEP owns hydroelectric, wind, and solar assets that produce predictable cash flow under long-term contracts. This has recently included the U.S. from an investment in nuclear power plants. Its yield of 4.9% provides meaningful income today, and management has a strong record of growing distributions annually. Over time, renewable energy demand is expected to soar as countries push toward decarbonization, giving Brookfield’s portfolio years of growth potential.

Bottom line

Together, these three investments create a well-rounded foundation. In fact, here’s what investors could earn immediately from $5,000 in each stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND (annual / share)TOTAL PAYOUT (annual)FREQUENCYTOTAL INVESTMENT
RY$203.8324$6.16$147.84Quarterly$4,891.92
VXC$74.9266$1.04$68.64Quarterly$4,944.72
BEP.UN$42.15118$2.08$245.44Quarterly$4,973.70

Each adds a different kind of strength, so even if you started saving later, your money can now work across every major part of the global economy. The result isn’t just catching up; it’s setting up for retirement confidence that lasts.

Fool contributor Amy Legate-Wolfe has positions in the Vanguard FTSE Global All Cap Ex Canada Index ETF. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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