Even with a modest salary, you can save a million dollars for retirement. You need to start in your 20s and put 10% of yearly net income into an RRSP and reinvest the tax refunds. But even if you wait till your mid-40s, you can still go from zero to a million, provided you’re debt-free. Saving 28% of net income in RRSPs and reinvesting refunds in the last 20 years of your career achieves the same result as saving 10% for 40 years.
Both scenarios assume a starting salary of $40,000 at age 25, with an annual 3% wage increase and a 6% rate of return on investments.