A 10-year delay can remove nearly half a million dollars from retirement without a market crash, a bad stock, or one suspiciously enthusiastic cryptocurrency. The money simply never gets enough time to exist. That’s the brutal part of waiting to invest: nothing appears to go wrong, yet an enormous opportunity can still disappear.
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The $450,000 cost of waiting
Suppose one investor starts contributing $500 monthly at age 35 and continues through age 65. At a hypothetical 8% annual return, compounded monthly, the account grows to approximately $745,180. Another investor waits until 45, makes the same monthly contribution, and finishes with about $294,510. That 10-year delay therefore cost roughly $450,670.
The early starter contributes $180,000, while the late starter contributes $120,000. Only $60,000 of the gap comes from additional deposits. The remaining difference comes from returns earning returns for longer, which is why time often does more retirement lifting than a heroic last-minute savings sprint.
The Ontario Securities Commission’s Investor Office explains that reinvesting investment earnings produces compounding, with longer time horizons increasing its potential benefit. An 8% return isn’t promised, of course. Markets won’t grow smoothly, and fees, taxes, and weaker returns would change both totals. The calculation demonstrates the cost of delay, not a guaranteed retirement balance.
Don’t wait for more money
Many investors postpone starting until they can contribute a “serious” amount. That reverses the useful order. Automating $500 now gives compound growth something to work with, while future raises can increase the contribution. The perfect budget tends to arrive shortly after the perfect market entry, which is to say, never.
A TFSA can make the habit more powerful. The 2026 annual limit is $7,000, so $500 monthly totals $6,000, provided the investor has sufficient room. Unused room carries forward; withdrawals generally return as room the following calendar year, and growth and withdrawals are tax-free without reducing federal income-tested benefits. Investors should still verify their own room before contributing.
Give the plan a large basket
Vanguard S&P 500 Index ETF (TSX: VFV) offers a simple home for a long-term monthly investing plan. The fund tracks the S&P 500 and holds large American businesses across technology, financials, healthcare, industrials, and other sectors. Investors can therefore own hundreds of companies without interviewing 500 chief executives before payday.
Vanguard’s June 2026 factsheet listed 506 stocks and a 0.09% management expense ratio. The exchange-traded fund (ETF) also produced a 26.9% market-price return during the previous year, illustrating why waiting for a more comfortable moment can miss substantial gains. That performance shouldn’t be mistaken for the next year’s itinerary, although low costs leave more of any future return invested.
VFV traded at 27.5 times underlying earnings at June’s end, while technology represented 38% of assets, and the 10 largest holdings represented another 38%. A tech selloff, U.S. recession, or stronger Canadian dollar could hurt returns. Investors wanting broader geographic exposure should consider how ETFs work and add Canadian or international funds rather than treating one index as the entire planet.
Start where you are
Someone already 45 hasn’t missed retirement. The same assumptions still turn $500 monthly into nearly $295,000 by 65, and a larger contribution can improve that outcome. The expensive mistake would be reading the calculation, feeling late, and waiting another year. Age 35 offers more time, but today remains the youngest investing day anyone has left.
