If thinking about retirement savings makes your stomach drop and your mind race, you’re not alone. Emotional baggage around money is common and can show up as fear that you’re behind, guilt for not starting sooner, or anxiety about making the “wrong” move.
Money is deeply personal. Some of us save for freedom, some to help family, and some just want to feel a bit more in control when life throws curveballs. Trying to figure out how much you’ll need in retirement can stir up all kinds of emotions. It can be hard to imagine a future that feels far away and make decisions today that will shape that future.
That’s why preparing for retirement isn’t just about the numbers—it’s about preparing your mindset too. Giving yourself permission to learn, to ask questions, and to take small steps forward. You don’t have to have it all figured out.
Before you worry about calculators or the “magic number” you have to save, take a moment to picture your ideal retirement. What kind of life do you want in retirement? Try writing down a few things that matter most to you—like time with grandkids, travel, or staying in your home. Then think about what trade-offs you’re okay with now to make those things possible later. There’s no right or wrong—just what feels right for you. Maybe you want to retire early and travel. Maybe you want to keep working but have a safety net. Maybe you want to support your family or give back to your community. Your vision of retirement will guide how much you need to save and help you chose the right mix of tools and benefits to get there.
This is the big question that everyone has. One way to estimate how much money you’ll need is to look at your current spending and think about what might go up or down later. You might spend less on commuting or work clothes, but more on healthcare or leisure.
Some experts suggest aiming to replace about 70-80% of your pre-retirement income each year as a rough guide. If you’re not sure where to start, try tracking your monthly spending for a few months. That gives you a clearer picture of what you actually need and what you might want to change. What matters most is what you need to feel secure and fulfilled. You don’t need to figure this out alone – there are tools and advisors who can help you build and stress-test your plan and adjust it as your life changes.
Planning for retirement also means preparing mentally for a big shift in how you think about your spending and your money. Yes, your work-related costs should decrease and your lifestyle costs or healthcare costs may increase, but your spending in retirement is also shaped by how you emotionally relate to the money you’ve saved.
People often separate money into mental “buckets” (like income vs. retirement savings) and are more comfortable spending from some buckets than others. We spend our working years focused on saving, building habits around budgeting, cutting back, and putting money away for “someday.” After years of saving, it can feel kind of scary to start spending that money. We often feel more comfortable spending income (like investment earnings or CPP benefits) than dipping into savings or selling investments. This mental accounting can lead to under-spending, even when it’s safe to enjoy the money. Think of your retirement savings as a gift to your future self. You worked hard for it—and spending it on things that matter to you is part of the plan.
You don’t need to be a financial expert or have a big salary to start planning. It’s also okay to start small – the key is just get started. Learn a little about saving plans, read up on retirement benefits, explore what kind of retirement feels right for you. Even setting aside $10 a week can build momentum. The key is consistency, not perfection. Begin with what you can, learn as you go, and adjust your plan over time. Retirement is for all of us. The more you learn, the more confident you’ll feel.