Being in control of your financial future is a great feeling, and it doesn’t need to be hard. A retirement plan with regular contributions that are started as early as possible will allow you to retire on your terms.
Scheduling recurring contributions helps achieve your long-term goals while reducing impulse purchases. Plus, regular contributions provide a higher return compared to making lump sum investments due to compound growth over time.
If you’re investing in RRSPs, set a budget that gets as close to but doesn’t exceed your annual contribution limit to maximize tax benefits and avoid paying a monthly fee for contributions over your limit.
Longevity of Saving
A small, regular contribution, whether it be monthly or bi-weekly, helps achieve your retirement goals faster. The earlier you can start saving, the more you’ll benefit from growth by compound interest over time, resulting in a nice retirement nest egg.
How to Adjust Your Plan or Get Started
Work with your Financial Planner or Advisor to ensure you both have a clear understanding of your current financial situation, anticipated expenses or income, and retirement goals. If you don’t have a Planner or Advisor don’t worry, that's what we're here for.
You can also play around some scenarios yourself by using the Pay Yourself First calculator available by our partners NEI, who provide socially responsible investments. Just plug in your household income and choose a couple options for how much of it you think you can set aside, how long you have until you plan to retire, and an average rate of return (we recommend 6%, but of course there are no guarantees).