I’m 36, recently divorced and starting again from zero: Can Canadians still save enough to retire after a financial wipeout?

While this is a hypothetical scenario, it will certainly resonate with many Canadians who have watched their marriage dissolve and the assets built within it divide in two. Divorce, aside from being emotionally exhausting in any circumstance, can feel financially catastrophic when savings vanish and legal bills pile up. Then, what looked like a comfortable retirement suddenly means starting over from scratch instead.

But the numbers suggest Ryan isn’t alone — and at 36 years old, he’s also far from being too late.

According to Statistics Canada data, the median value of Registered Retirement Savings Plans (RRSP) held by Canadians aged 35 to 44 is modest — around $33,000 — and far below what most people assume their peers have saved. Worse, a significant share of Canadians in this age group (over 67%) hold no registered retirement savings at all.

The good news? At 36, Ryan still has time on his side. With nearly three decades to go before the traditional retirement age of 65, compound growth can still do the heavy lifting — if he takes the right steps now.

If you are starting over from scratch, here are some ways to rebuild your wealth.

Lock in an emergency fund first

Before you worry about maximizing your Registered Retirement Savings Plan or Tax-Free Savings Account (TFSA), you need to be financially grounded. Setting up an emergency fund as your shield against inevitable financial curveballs is the best start.

A 2023 report from Statistics Canada found almost half (46%) of Canadians between the ages of 35 to 44 found it difficult to meet their financial needs over the previous year. More than one-third (35%) of the same group also reported they would be unable to cover a surprise $500 expense. Without a cash cushion an emergency fund can provide, you risk relying on high-interest credit cards or raiding your registered investments — which would trigger immediate tax consequences — when the unexpected occurs.

As a general rule of thumb, financial planners recommend saving three to six months of essential expenses in an emergency fund. If that feels impossible right now, aim smaller: Secure your first $1,000, a milestone that creates immediate breathing room and the drive to continue moving forward.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Put your retirement on autopilot

Once your emergency fund is stable, your next move is to make investing less triggering. Automation is the single most effective wealth-building tool available to help separate emotion from investing.

Industry data from Benefits Canada shows that workers enrolled automatically in workplace pension plans — such as Defined Contribution Pension Plans (DCPPs) — save at dramatically higher rates than those who manually opt in. If you don’t see the money leave your chequing account, you won’t miss it.

Since starting at age 36 means missing roughly a decade of early compound growth, the standard “save 15% of your income” rule might not cut it. To catch up, aim closer to 20% of gross income over time.

Most importantly, don’t panic if you can’t hit that target today. Start where you can, based on your income:

• At a $60,000 salary: Aim for $500 to $750 a month
• At an $80,000 salary: Aim for $670 to $1,000 monthly
• At a $100,000 salary: Aim for $830 to $1,250 each month

For Ryan — and others in a similar situation — small annual increases can make a meaningful difference over nearly three decades of investing.

Try the ‘1% trick’

You don’t need to completely slash your lifestyle overnight. A smarter, more sustainable approach is to increase your savings contribution by only 1% each year.

Whenever you get a raise, a promotion or pocket some side-hustle cash, immediately route that extra money into your RRSP or TFSA before you have a chance to spend it.

Consistency over decades matters infinitely more than trying to perfectly time the stock market. Consider this: Statistics Canada data shows that average registered savings balances are significantly higher among Canadians in their 60s than those in their 30s. That growth isn’t luck — it’s the result of steady compounding.

There’s another Canadian advantage to consider: if you have years of unused RRSP contribution room — common after a financially turbulent event like divorce — you can use that carry-forward room to make larger contributions in future years when your income is higher. Maximizing that room can provide a significant tax deduction and accelerate a savings catch-up.

According to the Canada Revenue Agency (CRA), the 2026 annual RRSP contribution limit is 18% of the previous year’s earned income, to a maximum of $33,810.

Give your earning power a boost

Cutting back on lattes and avocado toast purchases will only get you so far. To truly fast-track a post-divorce recovery, you need to be proactive with your income.

Use this transition phase to pursue new professional certifications, negotiate a higher salary, freelance or pivot into a higher-paying industry.

Even a modest income boost of a few hundred dollars a month — if directed straight into your RRSP or TFSA — can grow to tens of thousands of additional dollars by retirement.

The TFSA is worth a specific mention here: Unlike RRSP withdrawals, which are taxed as income when taken out, TFSA withdrawals are completely tax-free. For someone rebuilding after divorce, the TFSA offers powerful flexibility — you can grow savings tax-free and withdraw without penalty if an emergency arises. The 2026 annual TFSA contribution limit is $7,000, with a cumulative lifetime room of $109,000 for those who have been eligible since the TFSA was introduced in 2009.

Divorce can feel like a financial death sentence, but 36 is nowhere near the end of the road. A lot can happen over the next 20 to 30 years. Careers take off, paycheques grow and today’s financial setbacks eventually become distant memories.

What feels like starting over right now might actually be the fresh start that changes everything for the better.

What Canadians should know about divorce and retirement savings

Before you can rebuild, it helps to understand what happened to your savings — and what the law says about it.