Dave Ramsey once told a Ramsey Show caller it's possible to withdraw at 8% in retirement — but Suze Orman has called even 4% 'very dangerous’. Who's right?

The importance of retirement accounts

Ramsey’s advice is based on a number of suppositions that may not reflect the real financial status of the average retiree.

Inflation will eat away at the value of your retirement savings, and it’s very possible that your retirement years could coincide with a period of higher inflation.

That’s not to mention the stock market’s volatility. Many experts believe a consistent 12% return, like Ramsey has optimistically said mutual funds can deliver, may not be likely.

Orman’s advice, on the other hand, is more conservative. She advises retirees to withdraw as little as possible from their savings, which is a safer approach.

Either expert would argue that the best way to make your money last in retirement is to start saving as early and as aggressively as you can.

One of the best ways to save for retirement is with an tax-free savings account (TFSA). But you can also put your money in a registered retirement savigs plan (RRSP), which may lead you to think: Which one is better for me?

The answer depends on your income and savings goals. High-income earners may benefit more from the tax deferral of an RRSP. However, if you prioritize easy, penalty-free withdrawals for various life events, a TFSA might be the better choice.

For comprehensive savings, consider contributing to both an RRSP and TFSA, balancing short-term flexibility with long-term tax efficiency.

Before you begin your retirement planning, however, you need a plan. And while Ramsey and Orman make good points on withdrawal strategy, you may need help that's more tailored to your personal situation. If you’re unsure of how to navigate this on your own, calling a professional give you some peace of mind.

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Boost your existing savings

If you’re already in retirement, you may want to follow Ramsey’s advice on growing your existing savings with safe vehicles like mutual funds. However, many retirees have not considered the benefits of guaranteed investment certificates, whose returns can now go up to 5%.

Because a GIC comes with a fixed term, it’s not recommended for everybody. If you’re saving for a short-term goal or might need to access your money before the GIC term is up, you’re better off sticking with a high-interest savings account.

But if you don’t expect to need your money for any reason during the duration of the GIC term, then a GIC is a great way to earn high interest on your cash savings.

Parking your savings in these short-term growth funds will allow you to plan year-to-year and continue to grow your savings when you’re on a fixed income.

You can also check out Money.ca's Best High-Interest Savings Accounts to find some savvy savings options that earn you more on deposits.

Invest for passive income in retirement

Ramsey is a huge advocate for finding new passive income streams to pay down debt and build savings. While much of his advice is focused on finding a lucrative side hustle, for those in their golden years, a more relaxed approach may be easier to incorporate.

One of the easiest ways to grow your savings and portfolio is through an automated investing and saving platform such as Moka that simplifies the process of setting aside extra funds.

When you spend on anything — groceries, gas, or bills — it will automatically round up the price to the nearest dollar and deposits the difference into a smart investment portfolio for you, allowing you to grow your wealth without even thinking about it.

Professional investment managers at Mogo Asset Management then manage the invested funds. They create and manage a customized ETF portfolio tailored to your financial goals and risk tolerance. As your investment account grows, you can track your savings progress and portfolio performance through the easy-to-use Moka app.