Can you save $150 every month and have enough saved by age 65 to retire a millionaire? The Ramsey Show says yes — but there’s a catch

Saving for retirement can feel like an uphill battle. Canadians believe they need approximately $1.54 million for a comfortable retirement, according to BMO’s 2025 Retirement Survey (1).

As financial pressures mount from every direction, many Canadians find retirement increasingly out of reach, transforming what was once viewed as a well-deserved reward for decades of hard work into little more than a dream.

In fact, a 2025 survey by Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data found 59% of Canadians who haven’t yet retired don’t expect they’ll ever fully retire, citing financial pressure as the main reason (2). But George Kamel and Dr. John Delony, co-hosts of The Ramsey Show, offer some hope by outlining exactly how to become a millionaire by investing $150 a month (3).

While their math includes some important assumptions —such as the key detail of starting investing at a young age— it does highlight how possible it is for young investors to chart a course to becoming a millionaire by retirement. The catch? Many future retirees aren’t starting to save under perfect conditions, which could make hitting that $1 million mark by investing $150 every month a challenge.

Millionaire retirement math

If you’re skeptical that you can become a millionaire by investing $150 a month, you aren’t alone. But the math that Kamel lays out makes it clear that retiring a millionaire with that small figure is possible if all of the conditions are right.

In the ideal scenario, you’d start investing $150 each month at 24 and continue investing that amount until age 62. Over that 38-year period, with an 11% annual return, you’d see your nest egg grow to $1,033,082, thanks to compound interest.

“That is the power of starting early,” said Kamel.

Not only would you need to start early, but you’d also need to be lucky enough to experience an 11% return on your investment every year for decades. If the market crashes or you start later, a monthly $150 investment won’t get you to millionaire status by retirement age.

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How to save for retirement under any conditions

Many Canadians don’t start saving for retirement at 24. Even if they do commit to saving early, bumps in the road such as a job loss or market crash can easily derail their financial progress.

Kamel notes that Ramsey recommends investing 15% of your income toward retirement. For example, if you earned $2,000 a month, you’d ideally save $300 every month toward retirement.

In 2023, the average net income for Canadian families was $82,610 according to Statistics Canada (4). With this income, investing 15% would work out to approximately $1,025 a month, or just over $12,300 yearly.

If you started investing $1,025 each month at age 25 with a 10% interest compounded monthly, you’d have over $6 million tucked away by age 65. If you start at 35, you’d have over $2 million at retirement. Even if you start at 40, you’d have over $1 million at retirement.

You’ll notice that starting later means your funds will have less time to grow, so you may need to contribute more in order to reach your retirement goals. Regardless of where you’re starting from and when, you may find the idea of contributing 15% of your income toward retirement out of reach.

It’s never too late to start saving for retirement

On the show, Kamel and Delony point out that trimming up your spending and getting out of debt could help make room for retirement savings in your budget.

But remember, building up a nest egg of any size is better than reaching your golden years with no savings at all. People who actually achieve retirement savings of $1 million are well ahead of the pack — Canadians aged 65 to 74 hold an average of $609,230 in retirement savings, according to Benefits and Pensions Monitor (5).

If you’re starting with less than you’d like or later than you wish, that’s okay: The sooner you get started, the better. Consider running through different options with an investment calculator to see how different choices could pay off.

Imagine the financial benefits of cutting $200 in unnecessary monthly expenses or becoming debt-free and allocating former debt payments toward your retirement. The most significant savings often come from addressing your largest expenses. For example, downsizing your home to reduce housing costs or generating income from renting out a spare room could significantly boost your finances. Similarly, lowering transportation expenses by comparing insurance rates or choosing a more economical vehicle could be substantial in reaching your financial goals.

You may be surprised by how your savings can add up over time. For those who can’t tuck away 15% of their income, starting small and building room in their budget over time can make a big difference to their retirement lifestyle.

Article sources

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BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (1); Healthcare of Ontario Pension Plan: 2025 Canadian Retirement Survey (2); YouTube: How Much Do You Need To Invest Each Month To Retire A Millionaire? The Ramsey Show Highlights (3); Statistics Canada: Average after-tax income of Canadian families edges down in 2023 (4); Benefits and Pension Monitor: Canadians face similar retirement savings challenges as Americans (5)