![\"Male](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/03\/a450f523150de97a072f004c8c2de37a.jpeg\")
Male Ramsey Show host <\/p>\n Male Ramsey Show host <\/p>\n
Ann\u2019s story is one a lot of Canadians will recognize.<\/p>\n
The 50-year-old called into The Ramsey Show to admit something she\u2019d been carrying for some time: She was living paycheque to paycheque, had no retirement savings and didn\u2019t know where to begin (1).<\/p>\n
She wasn\u2019t good with money and never had anyone in her family teach her how to budget. A recent and costly hospital stay made it impossible to ignore her poor money management any longer.<\/p>\n
Ann isn\u2019t alone. A 2025 H&R Block Canada survey revealed that 85% of Canadians polled feel that living paycheque to paycheque is the new norm \u2014 up from 60% just a year earlier (2). Nearly half said they\u2019re unable to save for long-term goals like retirement because their income goes straight to immediate needs. Furthermore, the average Canadian puts only 7% of their pay toward savings, well below the commonly recommended 20%.<\/p>\n
Ann\u2019s situation is urgent, but it isn\u2019t hopeless. Co-host George Kamel offered some perspective: \u201cThe fact that you even decided this at 50 is amazing, because I know you think it\u2019s too late for you, but there\u2019s someone who\u2019s going to call in, probably today, who goes, \u2018Hey, I\u2019m 62 and I got nothing saved.\u2019 Ann\u2019s doing great. She\u2019s got a 12-year head start.\u201d<\/p>\n
Ann brings home US$2,800 (C$3,800) a month. Her rent takes US$1,500 (C$2,050) of that \u2014 more than half her income before she\u2019s paid a single other bill. Plus, she carries a US$450 (C$615) monthly car payment on a vehicle worth US$16,000 (C$22,000), plus US$10,000 (C$14,000) in high-interest payday loans and US$15,000(C$20,500) in medical debt.<\/p>\n
Co-host Ken Coleman\u2019s first instinct was the car. Selling it and replacing it with a cheaper vehicle could effectively give her back more than US$5,000 (C$6,800) a year. On housing, Kamel suggested that rent should ideally sit around a quarter of your take-home pay \u2014 for Ann, that would be around US$750 (C$1,025) a month. Finding a roommate or moving somewhere cheaper could free up close to US$1,000 (C$1,370) a month alone.<\/p>\n
The math Kamel ran was striking: If Ann lowered her rent by US$1,000 and eliminated the car payment, she\u2019d have around US$1,500 a month to work with. At that rate, she could be debt-free in roughly 27 months \u2014 and then turn that same US$1,500 toward building savings.<\/p>\n
Story Continues <\/p>\n
The principle here applies directly to Canadians in a similar position. Housing and transportation are two biggest drains on most budgets, and they\u2019re also the two places where significant changes are possible. Smaller expenses \u2014 the streaming subscriptions, the daily coffees \u2014 feel easier to cut but rarely move the needle far enough on their own.<\/p>\n
Read more: The ultra-rich are bailing on volatile stocks right now \u2014 these 4 shockproof assets are their new safe havens<\/a><\/p>\n If Ann\u2019s situation prompted you to do a quick mental calculation about your own retirement savings, you\u2019re not alone \u2014 and the benchmark can feel daunting.<\/p>\n Fidelity Canada suggests that by age 50, you should ideally have saved around six times your annual income, and ten times by age 65 (3). On a $60,000 salary, that would mean $360,000 put away by 50 and $600,000 by retirement.<\/p>\n If that number made your stomach drop, take a breath. These are targets, not report cards. According to BMO\u2019s 2025 retirement survey, only 21% of people are currently saving more than 10% of their income for retirement \u2014 and the bank notes how 10% is the rule of thumb, not a catch-up rate (4).<\/p>\n Starting later means needing to save significantly more, though the gap narrows considerably once Canada Pension Plan (CPP) and Old Age Security (OAS) benefits are factored in. For most Canadians, those government benefits rescue the amount of personal savings you\u2019ll need.<\/p>\n One practical tool worth knowing about: the federal government\u2019s Canadian Retirement Income Calculator (5). It lets you estimate your CPP and OAS <\/a>payments based on your contribution history and see what gap remains. It\u2019s free, takes about 10 minutes and gives you a far more personalized picture than any benchmark can.<\/p>\n Ann\u2019s situation highlights the true cost of never being taught proper financial management \u2014 something many Canadians share. Without anyone to show you the ropes, saving for retirement can feel less like a plan and more like a guess.<\/p>\n The most important thing, The Ramsey Show hosts stressed, is to start. Even modest contributions made consistently over 15 years can grow significantly. This is thanks to compounding \u2014 the idea that the money you earn on your savings starts earning money of its own. The longer it runs, the more powerful it becomes.<\/p>\n Starting at 50 instead of 25 means less time for that strategy to work in your favour, which is why reducing expenses and increasing income matters so much when you\u2019re catching up.<\/p>\n If you\u2019re starting later, aim to put a higher percentage of your income \u2014 20% or more if possible \u2014 to help close the gap faster. If that feels out of reach right now, start with what you can build up as you focus on decreasing debt.<\/p>\n There is an advantage that is readily available to you \u2014 a pair of registered accounts specifically designed to make savings more efficient.<\/p>\n A Registered Retirement Savings Plan<\/a> (RRSP) lets you contribute up to 18% of your previous year\u2019s earned income (up to $33,810 for 2025) and deduct that amount from your taxable income. That means the Canada Revenue Agency (CRA) effectively helps fund your contribution through a tax refund. The money grows tax-deferred until you withdraw it during retirement, ideally when your income \u2014 and tax rate \u2014 is lower.<\/p>\n A Tax-Free Savings Account<\/a> (TFSA) works differently: Contributions aren\u2019t tax-deductible, but every dollar of growth and every withdrawal is completely tax-free. The 2025 contribution limit is $7,000 and if you\u2019ve never opened one, your accumulated room since 2009 could be as high as $102,000.<\/p>\n If your employer offers a workplace pension or group RRSP with matching contributions, that\u2019s the closest thing to free money in personal finance \u2014 getting the full match should be your first savings priority before anything else.<\/p>\n Ann called in feeling like she\u2019d failed. What she\u2019d actually done was wake up at 50 with enough time to make a real difference \u2014 and the willingness to do something about it.<\/p>\n That matters more than most people give it credit for. If you\u2019re in a similar place, the path forward isn\u2019t mysterious: Cut the biggest expenses first, aggressively tackle high-interest debt and start putting money away in an RRSP or TFSA as soon as you have funds to set aside. CPP and OAS will help bridge the gap in retirement, but they work best as a foundation rather than a plan.<\/p>\n Find a financial advisor who can help you map out a realistic picture \u2014 not a frightening one.<\/p>\n \u2014 with files from Melanie Huddart<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Youtube (1<\/a>); H&R Block (2<\/a>); Fidelity (3<\/a>); BMO (4<\/a>); Government of Canada (5<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Male Ramsey Show host Ann\u2019s story is one a lot of Canadians will recognize. 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