Retirement Planning – 7 Tips for Late Savers

August 27, 2018
By admin

Since I turned 50, I find myself wondering will I have enough money to retire and enjoy a happy, healthy lifestyle.  I found some great tips on how to save as I was researching how to line my retirement nest egg.

1.      Take advantage of any unused RRSP contribution room – 

The government allows you to carry forward unused contributions amounts each year. Try to use it as soon as you can to take advantage of tax-sheltered savings.

2.      Invest in a Tax Free Savings Account (TFSA) – 

As of January 1, 2018, you can invest $5,500 each year. Your money grows tax-free and you don’t pay tax on the money you withdraw.

3.      Look for small ways to save – 

Cut back on your spending for items like lottery tickets, magazines, fancy coffee drinks, get a cheaper phone plan, eat out less, use less electricity or drive less. It all adds up.  It’s better to live on less now, so you’ll have more when you need it.

4.      Take advantage of workplace pension or savings plans – 

Especially if your employer offers matching contributions; it’s free money!

5.      Save your bonuses and raises – 

When you get a bonus or raise don’t spend it all.  You are already used to living on your current salary.  Invest it into your retirement savings.

6.      Consider saving less for your children’s education – 

If you can’t afford to save for both your retirement and your children’s education, put money in your RRSP first.  Your children can get jobs or borrow to help pay for their education. By saving for your retirement first, hopefully you can help them pay off their student loans which have a low interest rate.

7.      Revisit your investment strategy – 

Look for ways to get more growth without more risk than you can tolerate.  Most Exempt Market investment offerings allow you to transfer money from your RRSP or TFSA into an investment.  Once the investment cycle is complete the original capital is transferred back into your RRSP.  The beauty lies in the fact that you can reinvest the returns you made into your RRSP or another investment.

*All content in this eBook is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this eBook constitutes professional and/or financial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.