In addition to saving for retirement at work, Merrill Lynch's Corey recommends making the maximum allowable contributions to a traditional individual retirement account or a TFSA, depending on your income. "The amount you can contribute to a TFSA is $5,500 in 2017, $5,500 in 2016, $10,000 in 2015, $5,500 in 2014, $5,500 in 2013, $5,000 in 2012, $5,000 in 2011, $5,000 in 2010 and $5,000 in 2009,for people in their 40's, born in 1991 or earlier, for a total contributions per person in 2017 of $51,500.00" Corey says. "The difference between them is that with a TFSA, you pay taxes now on your contributions, but you avoid a potentially higher tax later. If you think tax rates are going up, like I do, then a TFSA may make more sense." Traditional non-registered self directed RSP's contributions are not limited by income, but TFSAs are limited to the amounts above. "At 40, retirement seems very far away, but it is so important to contribute the maximum you can to retirement savings," says Corey. "If you'll be living on $80,000 per year when you're retired, you'll need $2 million in assets. I wouldn't include Canada Pension Plan benefits in your planning if you're in your 40's, either because it may not be available or it will be means-tested."