When you’re in your 20s and 30s retirement seems so far away and your focus might be more on taking a trip or saving for a new car, or even a down payment on your first home.
But here’s the thing – planning for retirement is no different then planning for that trip, new car or house. There are small things you can do right now to help you reap the benefits of saving money early.
Start investing now – even if it's only small amounts
Begin by setting a savings goal while you’re still young. Open a Registered Retirement Savings Plan (RRSP) and set automatic transfer every pay cheque. Your annual contributions are tax deductible and can also help with reducing the amount of income tax you pay. Why save for retirement in your 20s and 30s? Because these small savings can become significant 20 to 30 years down the road. Use our retirement calculator to see why.
Take advantage of group RRSPs or pension plans
Chances are you getting established in your career and you may be working for an employer that has group RRSPs or a pension plan. Take advantage of these retirement plans available. Match what your employer is contributing and work with your Advisor to ensure your investments are making money while they’re sitting there.
Develop good saving habits
Start investing early vs. late and create strong saving habits that will help as you transition through life. Allowing yourself time to develop and fine tune your savings goals will create positive habits that will become second nature as your life moves forward.
Now it’s time to start developing your relationship with your Advisor. Your Advisor will provide you with sound advice and guidance to work toward achieving your retirement goals. Investing young is the best way to ensure that your future is secure.