Knowing how much to invest each month can feel challenging, especially as your life changes. 

You might be wondering whether you’re investing too much and stretching yourself thin or not investing enough to reach your goals. The truth is, the right amount to invest depends on your income, priorities, and where you are in life. There’s no one-size-fits-all approach. 

In this guide, we’ll walk through how much to invest at different stages of life and which accounts are commonly used along the way, so you can feel more confident getting started or adjusting your plan. 

  1. Why Invest Regularly
  2. In your 20s – Early 30s
  3. In Your 30s – 40s
  4. In 40s-50s
  5. In Your 50s-60s
  6. In Retirement
  7. Quick Reference on how much to invest
  8. Bottom Line

Why Invest Regularly

Investing consistently has some clear benefits that support long-term financial goals. It helps you increase your wealth, grow your money through compound interest, supports long-term wealth building, and helps protect your purchasing power as you work towards your financial goals. 

Even small monthly contributions can grow into meaningful wealth over time when you stay consistent. The key is to align your investing with your life stage, whether you’re just starting to invest, raising a family, or planning for retirement, so your investments work for you.

In Your 20s–Early 30s: Build Habits

When you’re new to investing, it can feel overwhelming. There are new terms to learn, different account types to understand, and plenty of advice coming from all directions. The goal at this stage is to start building consistent habits and get comfortable with investing. A good place to start is by deciding how much you can realistically invest each month. Many people aim for around 10–20% of their income, but what matters most is choosing an amount that feels manageable and sustainable for you. Even starting small with $15 or $20 a week can help you build strong habits for the future. If you’re unsure, an advisor can help you think through what the best number is to invest with your income, expenses, and short-term priorities. 

Once you have a comfortable contribution amount in mind, the next step is to open an account and start contributing consistently. Automating your contributions can make this easier, helping you save and invest without having to think about it each month.  

Some common accounts to consider when you’re just starting are; 

  • Tax-Free Savings Account (TFSA): A flexible savings account that can be used for any savings goal, with tax-free growth and withdrawals. Just be sure to stay within your contribution limit. 
  • First Home Savings Account (FHSA): An account for saving towards your first home with tax-deductible contributions and tax-free withdrawals when used to buy a qualifying home. 

If you need help deciding which account makes the most sense for you or want help getting started, our advisors can help. They will provide high-quality personalized advice, tailored to you and your goals. They can even set up automatic contributions for a pay yourself first savings strategy, so investing can become a habit and not a decision.

In Your 30s–40s: Grow Steadily

In your 30s and 40s, people often start focusing more intentionally on growing their savings while balancing other priorities. This stage is often about balancing steady growth with everyday expenses and longer-term goals. If it’s manageable for you, aim to invest 15-25% of your income. Here are some common areas people focus on during this stage of life. 

  • Maximizing your TFSA or RRSP contributions for tax advantages and long-term growth. 
  • Keeping a diversified portfolio of Canadian and global investments is important to manage the market ups and downs and any market volatility. 

Looking for extra ways to invest without feeling the pinch of straining your budget? Put a portion of any raise, bonus or your tax refund towards your investments. If you’re contributing more to an RRSP or FHSA, you could have a higher tax return the following year. 

It’s important to remember that these focus areas can look different for everyone, and they don’t all need to be tackled at once. What matters most is choosing an approach that fits your life today and adjusting as things change. If you’re unsure how these pieces come together, a Mainstreet and Aviso Wealth Advisor can help you talk it through.

In Your 40s–50s: Catch Up and Protect

In your 40s and 50s, many people are in peak earning years, which can make it a key time to strengthen your retirement savings. Keep contributing to your RRSP and TFSA to maximize your retirement savings, and maintain a balanced portfolio to manage risk and the market ups and downs. Our Mainstreet and Aviso Wealth Advisors are here to support you and provide you with the right advice to fit your needs. 

If it’s manageable, contributing 20-30% of your income can make a meaningful difference to your retirement plan. Tax-efficient investing can be even more beneficial if your income is high. 

Don’t forget to review your investments and asset allocations annually to ensure your risk level still aligns with your goals. If you’re unsure how to do that, our Mainstreet and Aviso Wealth Advisors can review your plan with you to make sure you’re on track and can invest with confidence.

In Your 50s–60s: Preserve and Plan

In your 50s and 60s, the focus often shifts to protecting your nest egg and preparing for retirement income. This can include moving into safer assets like term deposits, bonds, and dividend stocks. You’ll need to convert your RRSP into a Registered Retirement Investment Fund (RRIF) by the end of the year that you turn 71, so it’s important to plan for that transition. Tax diversification also becomes more important in your later working years. Balancing your RRSPs, TFSAs, and non-registered accounts can help spread out your tax impact as you move into retirement. 

A key tip is to keep at least a year of living expenses in cash or low-risk investments so you don’t have to sell during market downturns. Continue investing 15-20% of your income until retirement to build a sustainable retirement fund. Our Mainstreet and Aviso Wealth Advisors will work with you to diversify so you can feel confident about your future.

In Retirement: Maintain and Enjoy

After years of saving and planning, retirement is about making your money last while supporting your lifestyle. Focus on stability rather than your growth. This can include RRIF income streams, TFSAs for flexible and tax-free withdrawals, and lower-volatility investments for added peace of mind.  

Planning withdrawals takes some thought, and the right approach depends on your situation. A Mainstreet and Aviso Wealth Advisor can help you structure withdrawals in a way that’s tailored to your needs and supports tax efficiency over time.

Quick Reference: How Much to Invest

Here is a quick guide showing the general percentage of income people often invest at different stages of life. These ranges are meant as a reference point, not a rule.

Life Stage Suggested % of Income Main Goal 
20s–Early 30s 10–20% Build habits 
30s–40s 15–25% Grow wealth 
40s–50s 20–30% Catch up & protect 
50s–60s 15–20% Preserve & plan 
60s+ Varies Maintain income 

Even if you can’t align with these percentages right now, that doesn’t mean you’re off track. Investing looks different for everyone, and the right approach is one that fits your goals, your income, and where you are today.

Bottom Line

Our Mainstreet and Aviso Wealth advisors are here to support you through every life stage, from just starting to preparing for your retirement. If you’re wondering how much to invest, how to save, or how much you need to retire, we’ll help guide you every step of the way. Even small steps today can lead to big results tomorrow. 

Upon booking an appointment, our advisors will help you with your financial goals and set up a plan to fit your retirement goals and invest the right amount in each life stage that works for you.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities.