How can I save for retirement?

Saving for retirement is an important component of your financial plan. Understanding the investment accounts available to you to save for retirement sets a foundation for success. This video talks about the different ways that Canadians save for retirement so that we can build a plan that works for you.

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Video transcript

Everyone’s retirement plan is unique and it’s important to tailor your plan to your situation. By understanding some of the different options for saving, you’ll be able to take advantage of the benefits of each to achieve the retirement you have been dreaming about. Here are some of the ways Canadians can save for retirement.

Registered Retirement Savings Plans (RRSPs)

RRSPs allow you to reduce your taxable income when you contribute. Any income you contribute to your RRSP as well as any income earned in the account is exempt from tax until you withdraw it. If you are in your peak earning years, it can be a good idea to contribute to your RRSP now and withdraw the money in retirement when your tax rate is lower. 

Tax-Free Savings Accounts (TFSAs)

Although there is no deduction to your taxable income, any amount earned in a TFSA can be withdrawn at any time without being taxed. 

Company Pension and Savings Plans

Many employers offer pension plans, group RRSPs and other savings plans that can provide a source of income during your retirement. If your employer offers to match your contributions, this can be a very easy way to double your savings. 

Investment Accounts

There is a variety of ways you can use investment accounts to build a portfolio that will grow over your lifetime. Some examples being stocks, bonds, ETFs, mutual funds and GICs.

Your unique mixture will be based on your time horizon and risk tolerance. Now that you have a basic understanding of some of the ways you can save for retirement, speak to your financial advisor to create a tailored plan so you can reach your retirement goals. It’s never too early to start saving for your retirement.