You’ve hit your stride. You’ve got a career, a mortgage (or rent) you’ve stopped flinching at, maybe even a kid—or three. But you’ve got a growing suspicion that you should’ve started saving more… earlier. 

It’s not that you haven’t been saving. But you’ve been living, too. Like having to replace your roof or needing to redirect your RRSP contributions to pay for rising daycare costs. Maybe you kept meaning to invest, but analysis paralysis won. 

And now, with whispers of a recession, interest rate whiplash, and talk of new tariffs, it might be tempting to wait for things to settle before you make a move. But freezing won’t do your retirement fund any good.  

Sonny Nielsen, a Vancity and Aviso Wealth advisor, sees it all the time. “People in this age group often start late or skip building a formal savings plan. And once they do start, they can get overly cautious and afraid to take on risk.” 

If this sounds like you, the good news is that it’s not too late. A few smart course corrections can help you live the lifestyle you want in retirement. We’ll break down the most common mid-career saving mistakes and how to get back on track. 

Mistake #1: Living like you’re still in your twenties.  

Your job title’s matured. Your skincare routine’s upgraded. But if your savings habits haven’t caught up, you’re not alone. 

“It’s common for people in their thirties and forties to delay formalizing a savings plan,” says Sonny. “They’re earning more, but they haven’t recalibrated their contributions to match.” 

“It’s common for people in their thirties and forties to delay formalizing a savings plan. They’re earning more, but they haven’t recalibrated their contributions to match.” Sonny Nielsen, a Vancity and Aviso Wealth advisor

The thing is, by the time we hit our thirties, life gets filled with responsibilities and just costs more. Like that new roof you didn’t plan for. And admit it; emotional spending can creep in, too. When the world feels chaotic, a vacation or a fancy new blender feels like self-care. 

But if you’re still putting away the same amount you did in your entry-level days, you’re missing a huge opportunity. Even small increases in your savings rate now can mean retiring earlier, or more comfortably. 

“You get to a certain income level, and as long as you can live within that level, anything extra is gravy,” says Sonny. “So don’t get used to indulging in too much of that gravy.” 

Sonny calls big life events financial intersections. At every financial intersection (like a raise, a new job, or a growing family), you should reassess your plan. And by the time you’re in your mid-career, you’ll likely have passed a few of these intersections in your life.  

“You don’t have to overhaul your entire lifestyle,” says Sonny. “But before your new salary becomes your new baseline, carve off a slice for your future self. Even a small bump in contributions can change your destination.” 

Not sure how much is enough? “People say 15 or 20 per cent of your income should go into your savings. “Fifteen per cent is great,” Sonny adds. “But really, it’s about having the conversation with your wealth professional.”  

Try this:

• Treat every raise like a chance to reroute. Increase your automatic contributions before your spending adjusts.  

• Aim to save 15 per cent of your income if you can. If that feels out of reach, start lower and build up. 

• Book a check-in with an advisor when you hit a financial intersection like a new job, baby, or mortgage. These are turning points for your long-term goals. 

Mistake #2: Ignoring tax-efficient accounts. 

If Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and Registered Education Savings Plans (RESPs) sound like alphabet soup to you, you’re not alone. But these accounts aren’t just acronyms. They’re some of the best tools you have to lower your tax bill and grow your savings faster. 

“RRSPs are excellent if you need a tax deduction right now and you know your income will be lower in retirement,” says Sonny. “TFSAs are excellent if you have money to save, and you need to make big purchases down the line.” And RESPs are like free money for your kid’s education if you contribute. 

So, what’s best for you? Sonny says, “It really depends on your personal situation. I tell people all the time RRSPs are for income, while TFSAs are for purchases. For example, you might need a new hot water heater in a few years, so it’s probably best to save that in your TFSA.”  

So, what’s best for you? Sonny says, “It really depends on your personal situation. I tell people all the time RRSPs are for income, while TFSAs are for purchases.”

And yet, these accounts are often overlooked. Sonny’s seen it plenty of times. Someone maxes out their regular savings account and pays tax on the growth when they could have kept more of that return by simply choosing a different account. 

Which account is best for you what?

• RRSP: Great if you’re in a high tax bracket now and expect to be in a lower one later, like when you retire.  

• TFSA: Perfect if you want tax-free growth and might need to access your money before you retire. 

• RESP: Great for parents. The government matches 20 per cent of what you contribute, up to $500/year per child.  

“Being consistent and using the right account is how you really get ahead.” Sonny recommends paying yourself first by automatically transferring funds before you even notice they’re there. 

The other piece of advice Sonny has is not to underestimate time. “If you’re not planning on touching your money for a long period of time, then consider the opportunity to make a much better return on it.”  

For example, a high-interest rate savings account that gives you a two per cent return may not pay out as much as a higher-risk investment that may give you a seven per cent return. Your best course of action is to speak with an advisor to assess your risk tolerance and get a professional opinion on where your money should sit.  

Try this:

• Automate your savings to tax-advantaged accounts with every paycheque. Even small amounts add up and save you more than you think in the long run. 

• Speak to a wealth professional about the level of risk and return that’s right for your savings.  

If you’re not using these accounts, you could be handing more money to the government than you need to. And let’s be honest: they probably won’t send you a thank-you card. 

Mistake #3: Relying too much on your home.  

A house isn’t a retirement plan. Or, as Sonny puts it: “Don’t use your house like an ATM.” 

A house isn’t a retirement plan. Or, as Sonny puts it: “Don’t use your house like an ATM.” 

Yes, real estate has been on a wild ride, especially in BC, where many of us have benefited from what Sonny calls “the housing lottery.” Buy in the right neighbourhood at the right time and boom! Your net worth skyrockets. But counting on your home to fund retirement? That’s risky business. 

“Historically, people could do that,” Sonny says. “But things are changing. Especially for younger people or anyone struggling to get into the housing market in the first place.” 

Even if you do own, banking on that equity to carry you through retirement can backfire. “Markets can cool. Home values can drop,” Sonny explains. “And the moment you need that money, it’s not easy to access because your house isn’t liquid.” 

Translation: your home might be worth a lot on paper, but it won’t help with unexpected expenses unless you’re ready to downsize, remortgage, or sell. 

And Sonny’s seen that plan go sideways. “People assume they’ll just downsize later and live off the proceeds,” he says. “But then they don’t want to move. Or the market dips. Or they get hit with a few major home repairs. Suddenly, that home equity doesn’t stretch as far as they thought.” 

Even if your home is your biggest asset, it shouldn’t be your only one. 

“Some people won’t get into the housing market at all,” Sonny adds. “And that’s okay. So, what are your other options? That’s where RRSPs, TFSAs, or other tax-sheltered tools come in. That’s where your advisor can help you build a plan that doesn’t rely on just one asset.” 

Try this:

• Diversify your assets. Alongside your home, grow your RRSPs, TFSAs, or other liquid investments, things you can tap into when you need cash without selling your home. 

• Plan for maintenance in your budget. New gutters, roof repairs, or cracked foundations are part of home ownership.  

• Talk to an advisor about how to balance your home’s value with other retirement income streams.

Remember, your home may be part of your plan, but it shouldn’t be the plan. 

Mistake #4: Letting big life changes derail you. 

Divorce. A layoff. Your kid gets sick. A parent moves in. You get hit with a surprise dental surgery and a property tax bill in the same week. If you’re in your thirties, forties, or fifties, some kind of major life event is guaranteed. The question isn’t if. It’s when. 

“It’s not about avoiding change,” Sonny says. “It’s about being ready for it.” 

That’s where your emergency fund comes in. Ideally, you’ve got three to six months’ worth of expenses set aside in a high-interest savings account. Not invested, not under your mattress. Somewhere accessible, but out of reach enough that you don’t dip into it for concert tickets. 

But financial cushioning isn’t just about cash. It’s also about clarity. 

“Less than half of Canadians have a will,” Sonny says. “Or a power of attorney. Or a health care directive. These documents can make difficult transitions smoother, but most people don’t think about them until they absolutely have to.” 

And if you’re already mid-crisis? It’s not too late. 

“I sound like a broken record, but talk to your advisor,” Sonny says. “We can walk through the numbers, help you reframe your plan, and point out things you may not have thought of, like how much selling your home during a divorce really costs, or whether it makes sense to start taking Canadian Pension Plan payments earlier than 65” 

The truth is that unexpected events hit harder when you’re already stretched thin. But with a little preparation and the right support, you can absorb the blow and stay on track. 

Try this:

• Treat savings like a bill. Make it automatic so you’ve got a cushion when life gets messy. 

• Get your paperwork in order. A will and a power of attorney aren’t just for retirees. 

• Have the tough conversations early. Don’t wait for a crisis to figure out your plan. 
   

Big life changes are part of the deal. But they don’t have to knock you off course. 

Mistake #5: Waiting too long to talk to an advisor. 

Think of financial advisors like dentists. The longer you wait, the scarier the visit can be. 

“A lot of people don’t come in until there’s a pain point,” Sonny says. “They can’t afford a bill. They’ve been laid off. They’re behind on retirement. And now they’re hoping for maximum return with no risk. Well, I’d love that, too. But it’s not feasible.”  

It’s totally normal to feel intimidated. But your advisor’s job isn’t to judge—it’s to help. The earlier you start the conversation, the more options you’ll have. And those options? They matter. 

Because sometimes the math says you need to spend less or earn more. Or maybe you’ll need to push retirement out a few years. Yes, they’re hard truths, but they’re also the starting point for a solid plan. 

And if you’re feeling overwhelmed by news headlines—recession fears, rising interest rates, tariff talk—your advisor can help you tune out the noise.  

“Markets react to the unknown,” Sonny says. “But your plan? That’s built for the long term. You just have to stay the course.” A great plan doesn’t dodge turbulence; it helps you ride it out. 

Try this:

• Don’t wait for a crisis. Talk to an advisor before things feel urgent. 

• Remember, the earlier you come in, the more options you have. But it’s never too late to create a plan.  

It’s not too late to catch up, especially with help from Vancity.  

You don’t need to have it all figured out. You just need a place to start. 

Whether you’re playing catch-up, navigating a big life shift, or simply wondering if you’re doing enough, talking to an advisor can help. A Vancity expert will walk you through your options, help you make a plan, and keep things jargon and judgment-free.  

Let’s get you moving in the right direction. Book a one-to-one appointment today. 

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article is from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is not intended to be investment, tax or other advice and should not be relied on without seeking the guidance of a professional to ensure your circumstances are properly considered. Please see our Terms of Use.