Your 40s can feel like the halftime show of your financial life: you’ve got responsibilities (mortgage, kids, maybe aging parents), but you’ve also got clarity and hopefully, a stable income. This makes it the perfect decade to get serious about your retirement plan. But what does retirement planning in your 40s actually look like in real life?

In this post, we explore real-life examples of Canadians in their 40s navigating the retirement maze—some winning early, others making mistakes they had to correct. Whether you’re playing catch-up or aiming for financial independence, these stories and takeaways will offer both early retirement planning tips and cautionary notes on retirement planning mistakes to avoid.

1. The Power of a Reset: Raj’s Story of Getting Back on Track at 45

Background:
Raj, a 45-year-old marketing manager in Toronto, had spent most of his career focusing on his family’s needs—paying off debt, upgrading homes, and managing school fees. Retirement wasn’t even on his radar until a health scare reminded him that life doesn’t come with guarantees.

What He Did:

  • Assessed all his retirement accounts and found he had only $32,000 saved.
  • Met with a financial advisor and created a realistic retirement plan.
  • Shifted his spending habits—cut dining out, started budgeting.
  • Maxed out his RRSP and TFSA for the first time in 2024.
  • Started investing in a balanced ETF portfolio for long-term growth.

Results So Far:
Within two years, Raj doubled his retirement savings, created an emergency fund, and got peace of mind.

Key Takeaway:
It’s never too late to reset. The earlier you take ownership, the more time you give compound growth to work in your favour. One of the best early retirement planning tips is to simply start, even if you feel behind.

2. Aiming for FIRE: Marie and Jason’s Early Retirement Dream

Background:
Marie (41) and Jason (43), a dual-income couple in Calgary with no kids, got inspired by the FIRE movement (Financial Independence, Retire Early). Their dream: retire by 50, travel full-time, and never stress about bills.

What They Did:

  • Tracked every expense and optimized their budget ruthlessly.
  • Moved to a smaller home and sold a second car.
  • Invested 60% of their income into low-cost index funds.
  • Built a retirement projection spreadsheet and updated it monthly.
  • Read books and followed FIRE blogs to stay motivated.

Results So Far:
In six years, they’ve accumulated nearly $700,000 in investments and are on track to hit their $1 million goal in under a decade.

Key Takeaway:
If early retirement is your goal, intentionality is everything. Saving aggressively, minimizing lifestyle inflation, and sticking to a simple investment strategy are key early retirement planning tips that actually work.

3. Mistake in the Making: Lena’s RRSP Blunder

Background:
Lena, 44, a freelance graphic designer from Vancouver, had been contributing to her RRSP for years—but she kept withdrawing funds whenever work was slow.

The Problem:

  • She assumed RRSPs were flexible savings tools like TFSAs.
  • Didn’t realize early RRSP withdrawals are taxed as income and reduce her retirement nest egg.
  • Had no stable investment plan and jumped in and out of risky stocks.

How She Recovered:

  • Started contributing to a TFSA for emergency use instead.
  • Built a 3-month buffer fund outside her retirement accounts.
  • Rebalanced her portfolio to focus on stable, long-term growth assets.
  • Consulted a fee-only advisor to create a more tax-efficient plan.

Key Takeaway:
Mixing retirement savings with short-term needs is one of the most common retirement planning mistakes. Understanding the rules of your accounts (RRSP vs TFSA) is critical to avoid penalties and missed opportunities.

4. The Balanced Approach: Anthony & Priya’s Steady Climb

Background:
Anthony (46) and Priya (44) from Mississauga are raising two teenagers while working full-time jobs. They don’t have dreams of early retirement, but they want to be secure by 65 without being a burden to their children.

Their Strategy:

  • Contribute regularly to RRSPs through workplace matching programs.
  • Use TFSAs to save for short-term goals like kids’ education and home repairs.
  • Set automatic monthly contributions to reduce decision fatigue.
  • Review their retirement plan together every January to track progress.

Where They Excel:
They strike a balance between enjoying the present and planning for the future. Their investments are diversified across mutual funds, GICs, and a few dividend-paying stocks.

Key Takeaway:
You don’t need to be extreme to be successful. Consistency, teamwork, and small annual check-ins are underrated TFSA and RRSP strategies that lead to long-term success.

Make Your 40s Count

The 40s are a pivotal decade for retirement planning. It’s a time to take your goals seriously, fix any past financial habits, and set the stage for a secure future. Whether your plan includes early retirement or a traditional timeline, the key is to plan with purpose.

Key Lessons from These Stories:

  • Start now, even if it feels late.
  • Don’t underestimate the power of budgeting and consistent investing.
  • Avoid early withdrawals from retirement accounts.
  • Educate yourself about your financial tools and options.
  • Check in regularly with your partner and/or advisor.

By learning from real people just like you, it’s easier to see that successful retirement planning doesn’t require a finance degree—just commitment, smart strategies, and a bit of inspiration.