If you’re in your late 30s or 40s, you’ll know the feeling. Retirement is close enough to take seriously, but far enough away to keep getting pushed down the priority list. The kids’ education costs are climbing. You’ve changed jobs once or twice and somewhere along the way, a preservation fund has been forgotten. And tax season always seems to arrive before you’re ready.
That’s what we call The Mid-life Squeeze. ETFSA’s Gareth Stobie and Suzan Ramotshabi tackled this in our latest webinar.
Key Takeaways:
1. Automate your wealth creation
One of the simplest and most effective things you can do right now is set up debit orders for your savings and investments before your discretionary spending kicks in. If you have to actively choose to save each month, life will get in the way. Remove the decision entirely.
2. Stop lifestyle creep in its tracks
Pull up your last few bank statements and do an honest audit. Identify at least one expense to cut and one to reduce. Non-essential subscriptions and small recurring costs add up faster than most people realise.
3. Structure your savings across time horizons
Short-term, medium-term, and long-term goals need different strategies. Be clear and intentional about what each pool of money is actually for. A long term savings account should not be used as an emergency fund savings pool.
4. Review your preservation, pension, and provident funds
Many people in their 40s and 50s have retirement savings scattered across multiple employer plans and a significant portion of those funds are sitting dormant, missing growth opportunities and quietly accumulating fees.
A practical starting point: increase your retirement contributions by 1% of your annual salary each year, ideally aligned with your salary increases. Small, consistent steps compound meaningfully over time.
5. Make sure your portfolio matches your timeline
If you’re more than 10 years from retirement, your portfolio should still be working hard. We all have different timelines and goals; your investments should reflect that.
6. Set up TFSAs for your children
Tax-Free Savings Accounts aren’t just for your own retirement goals. Opening one for your child is one of the most impactful financial gifts you can give them. The earlier you start, the more time compounding has to work. This is a great way to ensure that you don’t have to sacrifice your retirement for children’s education and other costs.
Missed the webinar?
The full recording is available to watch below:
If you have questions about preservation funds, portfolio allocation, or anything covered in the session, please contact us.