January 10: More Canadians start investing at 60, ETFs lead the way
More Canadians start investing at 60 as interest in retirement investing Canada trends higher. A new report shows retirees picking simple, diversified ETFs and focusing on steady, lower-risk growth. With $500 per month and a 7% annual return, a late starter can build about $87,000 in 10 years, which can support part-time work or delayed CPP. We explain why ETFs stand out, the math behind that figure, and clear steps to begin with a plan that fits Canadian rules and benefits.
Why ETFs are gaining with Canadian retirees
Canadians who start investing at 60 want clarity and control. A recent TVA Nouvelles report highlights retirees who now have the income and time to invest, and experts who stress realistic goals and lower risk. Many prefer an ETF core for instant diversification and easy monitoring. See the TVA Nouvelles report for context and examples: source.
An ETF for retirees can reduce single-stock risk and keep costs steady. A broad Canadian, U.S., and global mix is easy to hold and rebalance. One- or two-fund models limit complexity and mistakes. This suits investors who start investing at 60, want fewer decisions, and need a portfolio they can manage through market dips and life events.
What $500 per month can become by age 70
If you start investing at 60 and add $500 per month for 10 years at a 7% annual return, the total can reach about $87,000. This aligns with the TVA story on late-life investing and sets a clear, achievable target for many households: source. Compounding works even if you begin later, especially with steady contributions and a balanced mix.
Results vary with market returns and savings rates. At 5%, $500 per month for 10 years lands near the mid-$70,000s. At 9%, it can push into the low-$90,000s. Increase to $600 per month and you add roughly 20% to totals. The key for retirement investing Canada is consistency, low-cost ETFs, and rebalancing to manage risk while staying invested.
Picking an allocation and the right accounts
Choose an ETF for retirees based on payout needs and risk comfort. Many late-life investing plans use conservative or balanced allocations. A 40% stocks and 60% bonds mix may suit income-first needs. A 60% stocks and 40% bonds mix seeks more growth. If you start investing at 60, set rules to rebalance yearly and hold at least one year of cash for withdrawals.
A TFSA can shelter growth and dividends tax-free, which helps those who start investing at 60. RRSPs can still work if you have room and a high tax rate today, but remember RRSPs convert to RRIFs by 71 with required withdrawals. Coordinate withdrawals with CPP, OAS, and any work income to avoid tax surprises and protect benefits.
A simple action plan for late starters
Open accounts, build a small emergency fund, and pick one or two diversified ETFs. Automate monthly deposits on payday to make late-life investing stick. Review fees, check tracking error, and confirm the fund’s stock and bond mix. If you start investing at 60, write a one-page plan with targets, timelines, and a rule for how you will rebalance.
Use a cash bucket covering 6 to 12 months of spending, then keep the rest in your ETF portfolio. Rebalance annually or when allocations drift. Reduce stock risk as you near large expenses. For retirement investing Canada, sequence risk matters, so two to three years before withdrawals, shift slightly safer and pace any big purchases.
Final Thoughts
Canadians who start investing at 60 can still build meaningful savings with simple tools and steady habits. A low-cost ETF core, automatic $500 monthly contributions, and an allocation that fits your income needs can add up to about $87,000 over 10 years at a 7% return. Keep your plan practical: hold some cash for near-term spending, rebalance once a year, and prefer broad diversification over chasing winners. Use TFSAs for tax-free growth and fit RRSP or RRIF moves around CPP and OAS decisions. If your situation is complex, sit with a fee-only planner to set targets, pick funds, and map withdrawals with confidence.
FAQs
Is it too late to start investing at 60 in Canada?
No. You can still build savings and reduce risk through diversification. With $500 monthly contributions and a moderate 7% return, you could approach $87,000 in 10 years. Focus on low-cost ETFs, an appropriate stock-bond mix, and a small cash buffer for planned withdrawals.
Are ETFs a good choice for retirees?
Often yes. A broad-market ETF for retirees offers instant diversification, simple rebalancing, and clear costs. Many retirees use one or two ETFs to cover Canadian, U.S., and global exposure, plus bonds for stability. Keep fees low, automate contributions, and review allocation yearly to manage risk.
Should I use a TFSA or RRSP at 60?
If you have TFSA room, it is a strong first choice because growth and withdrawals are tax-free. RRSPs can still help if you are in a high tax bracket now, but they convert to RRIFs by 71. Coordinate contributions and withdrawals with CPP and OAS to limit taxes.
How much should I invest monthly if starting at 60?
Aim for an amount you can automate and keep through market swings. Many start with $500 per month. If cash flow allows, raise it to $600 to $750 to reach goals faster. Match contributions with a conservative or balanced ETF mix and review progress once a year.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
