Older couple <\/p>\n
Saving for retirement can feel like an uphill battle. Canadians believe they need approximately $1.54 million<\/a> for a comfortable retirement, according to BMO\u2019s 2025 Retirement Survey.<\/p>\n As financial pressures mount from every direction, many Canadians find retirement increasingly out of reach, transforming what was once viewed as a well-deserved reward for decades of hard work into little more than a dream.<\/p>\n In fact, a 2025 survey by Healthcare of Ontario Pension Plan<\/a> (HOOPP) and Abacus Data found 59% of Canadians who haven\u2019t yet retired don\u2019t expect they\u2019ll ever fully retire, citing financial pressure as the main reason. But George Kamel and Dr. John Delony, co-hosts of The Ramsey Show<\/a>, offer some hope by outlining exactly how to become a millionaire by investing $150 a month.<\/p>\n While their math includes some important assumptions \u2014such as the key detail of starting investing at a young age\u2014 it does highlight how possible it is for young investors to chart a course to becoming a millionaire by retirement. The catch? Many future retirees aren\u2019t starting to save under perfect conditions, which could make hitting that $1 million mark by investing $150 every month a challenge.<\/p>\n If you\u2019re skeptical that you can become a millionaire by investing $150 a month, you aren\u2019t alone. But the math that Kamel lays out makes it clear that retiring a millionaire with that small figure is possible if all of the conditions are right.<\/p>\n In the ideal scenario, you\u2019d start investing $150 each month at 24 and continue investing that amount until age 62. Over that 38-year period, with an 11% annual return, you\u2019d see your nest egg grow to $1,033,082, thanks to compound interest.<\/p>\n \u201cThat is the power of starting early,\u201d said Kamel.<\/p>\n Not only would you need to start early, but you\u2019d also need to be lucky enough to experience an 11% return on your investment every year for decades. If the market crashes or you start later, a monthly $150 investment won\u2019t get you to millionaire status by retirement age.<\/p>\n Many Canadians don\u2019t start saving for retirement at 24. Even if they do commit to saving early, bumps in the road such as a job loss or market crash can easily derail their financial progress.<\/p>\n Story Continues <\/p>\n Kamel notes that Ramsey recommends investing 15% of your income toward retirement. For example, if you earned $2,000 a month, you\u2019d ideally save $300 every month toward retirement.<\/p>\n In 2023, the average net income for Canadian families was $82,610 according to Statistics Canada<\/a>. With this income, investing 15% would work out to approximately $1,025 a month, or just over $12,300 yearly.<\/p>\n If you started investing $1,025 each month at age 25 with a 10% interest compounded monthly, you\u2019d have over $6 million tucked away by age 65. If you start at 35, you\u2019d have over $2 million at retirement. Even if you start at 40, you\u2019d have over $1 million at retirement.<\/p>\n You\u2019ll notice that starting later means your funds will have less time to grow, so you may need to contribute more in order to reach your retirement goals. Regardless of where you\u2019re starting from and when, you may find the idea of contributing 15% of your income toward retirement out of reach.<\/p>\n Read more: What is the best credit card in Canada? It might be the RBC\u00ae British Airways Visa Infinite, with a $1,176 first-year value<\/a>. Compare it with over 140 more in 5 seconds<\/strong><\/p>\n On the show, Kamel and Delony point out that trimming up your spending and getting out of debt<\/a> could help make room for retirement savings in your budget.<\/p>\n But remember, building up a nest egg of any size is better than reaching your golden years with no savings at all. People who actually achieve retirement savings<\/a> of $1 million are well ahead of the pack \u2014 Canadians aged 65 to 74 hold an average of $609,230 in retirement savings, according to Benefits and Pensions Monitor<\/a>.<\/p>\n If you\u2019re starting with less than you\u2019d like or later than you wish, that\u2019s okay: The sooner you get started, the better. Consider running through different options with an investment calculator<\/a> to see how different choices could pay off.<\/p>\n Imagine the financial benefits of cutting $200 in unnecessary monthly expenses or becoming debt-free and allocating former debt payments toward your retirement. The most significant savings often come from addressing your largest expenses. For example, downsizing your home to reduce housing costs or generating income from renting out a spare room could significantly boost your finances. Similarly, lowering transportation expenses by comparing insurance rates or choosing a more economical vehicle could be substantial in reaching your financial goals.<\/p>\n You may be surprised by how your savings can add up over time. For those who can\u2019t tuck away 15% of their income, starting small and building room in their budget over time can make a big difference to their retirement lifestyle<\/a>.<\/p>\n 1. BMO: <\/a>BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)<\/p>\n 2. Healthcare of Ontario Pension Plan: <\/a>2025 Canadian Retirement Survey (Jun 17, 2025)<\/p>\n 3. YouTube: <\/a>How Much Do You Need To Invest Each Month To Retire A Millionaire? The Ramsey Show Highlights (Aug 26, 2025)<\/p>\n