Retirement Edging in? It’s Not too Late to Catch Up

Late to saving? VXC gives cheap, global diversification so your TFSA can compound growth and help you catch up.

Key Points
  • It’s never too late, consistent contributions and smarter saving can still build a solid retirement fund.
  • VXC delivers instant exposure to 13,000+ global stocks with a low 0.22% MER for long-term growth.
  • Use tax-sheltered accounts like a TFSA and reinvest dividends to accelerate compounding and reduce taxes.

It’s easy to feel like you’ve missed your window for building retirement savings, especially when you see others who started investing decades ago. But the truth is, it’s never too late to catch up. The power of compounding, combined with smarter saving strategies, means even a late start can still lead to financial independence. Let’s get into how.

ETFs can contain investments such as stocks

Source: Getty Images

Getting started, even now

First, stay focused. If you’re in your 40s or 50s, you’re likely earning more than you did in your 20s or 30s, and that higher income gives you the chance to make meaningful contributions. Tools like the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) can supercharge those savings. Even small, consistent deposits can add up fast in these accounts when left to compound.

What’s more, today’s retirees are living longer and working differently. Retirement isn’t necessarily a hard stop at 65. Many Canadians are working part-time, consulting, or starting side businesses into their 60s and beyond. And for those who are looking at a hard stop, there are options. Downsizing or simplifying your lifestyle can free up more money for investing. Furthermore, you now have better tools and lower fees through online brokerages and robo-advisors, which help your money work harder with less effort.

Finally, catching up isn’t only about saving more, it’s about spending smarter. Building a retirement plan includes reducing high-interest debt, trimming unnecessary costs, and ensuring your investments align with your goals. A simple, automated strategy that keeps you invested and focused on consistent growth can make all the difference.

Consider VXC

If you’re looking to catch up on retirement savings, Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC) might be one of the smartest, simplest ways to do it. This single ETF gives you instant access to thousands of companies across the globe. It holds over 13,000 stocks from around the world, excluding Canada, meaning you’re automatically diversified across countries, currencies, and industries. You get exposure to powerhouse names, along with fast-growing companies in developing economies.

And compounding is where VXC shines. Over the long term, global equities have delivered average annual returns around 8%, depending on the decade. That kind of steady growth can make an enormous difference for late savers. VXC’s low cost also gives it a major advantage. The fund’s management expense ratio (MER) is around 0.22%, meaning you’re paying just $22 per year on every $10,000 invested. That’s a fraction of what traditional mutual funds charge, and over time, those savings compound into thousands of extra dollars in your pocket.

It’s also built for long-term resilience. The ETF includes companies across every major sector from tech, healthcare, consumer goods, finance, and more, so even if one area slows down, others tend to pick up the slack. This diversification means you can stay invested through market swings without worrying about catastrophic losses in a single region or industry. That steadiness is crucial when your retirement horizon is closer, since consistency becomes more valuable than chasing high-risk gains.

Bottom line

In short, VXC is one of the easiest and most effective ways to accelerate retirement savings. It puts your money to work across the world, captures long-term growth, and requires almost no effort to maintain. And right now, here’s what an investment of $50,000 could bring in for retirees right away.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
VXC$74.506711.44%$720Annual$49,995

For investors trying to catch up, it offers everything that matters: instant diversification, steady returns, low fees, and time-tested performance. You don’t need to chase the next hot stock, you just need a smart, all-in-one ETF that works while you sleep. And that’s exactly what VXC does.

Fool contributor Amy Legate-Wolfe has positions in Vanguard FTSE Global All Cap Ex Canada Index ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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