Are you worried about your retirement savings? You’re not alone. A lot of people are concerned about whether they’re doing enough to prepare for their golden years.
But don’t worry – we’ve got some tips to help get you started! Keep reading for helpful advice on how to save for retirement.
1. Start Saving Early
Saving for retirement is a lot easier when you start young. The sooner you begin, the more time your money has to grow and compound – which means by the time it comes around to retire, there will be plenty of extra cash waiting! If possible, try putting aside at least 15% of every paycheque (you can even do this automatically through payroll deductions) so that it will accumulate over time without too much effort on your part. Saving early also allows more flexibility because if something unexpected happens later in life – like losing a job or having to pay for expensive medical bills – you’ve already got an emergency fund set-up!
2. Set A Goal
It’s important to have a plan for your retirement savings. Decide how much money you want to save, and set goals along the way to help you reach that amount. Saving for retirement can be daunting, but setting small goals helps keep things manageable and ensures progress toward your ultimate goal! The rule of thumb is 10% of your income. Save that and your retirement will be comfortable. Want to save more than that? Fantastic. Do it.
3. Make Saving Automatic
As mentioned earlier, it’s easy to make sure you’re putting money aside for retirement is by having it done automatically from each pay cheque (contact your company’s payroll department and ask about payroll deductions). By making this automated, your savings will accumulate over time without too much effort on your part and there’s no concern about missing payments! Contribute to your RRSP in early January when the contribution room opens up. A powerful part of the RRSP is the tax sheltering of growth. So, get that money in right away. i.e. don’t wait til late February to contribute for the previous year. Start on day 1.
4. Pay Off Debt First
If you want to save for retirement, pay off any debt first. You should be putting extra money into paying down credit card bills and student loans instead of saving it up in a savings account – because interest rates on these debts can often exceed returns from investments! Saving while carrying debt is like running with weights tied around your ankles! There is also an emotional part to paying down debt. You sleep better. Your spouse is happier. You don’t have to sweat because the month is longer than your pay.
5. Invest in Your Employer’s Retirement Plan
If your company offers a retirement plan, you should contribute as much as possible. Many employers will match up to some percentage of what employees put into the plan – so find out how yours works and make sure not to miss out on this benefit! Contribute. If your employer matches your contributions, then you double your money from day 1.
6. Take Advantage of Tax Breaks
One of the best ways to save for retirement is to take advantage of tax breaks. There are a lot of different tax savings opportunities available to retirees, so be sure to explore all of your options. For example, you may be able to claim a deduction for your contributions to a retirement account, or you could take advantage of a TSFA.
7. Invest Your Money Wisely
If you want your retirement savings to grow, it’s important to invest them wisely. Choose investments that have the potential to generate high returns over time. This may include things like stocks, bonds, and real estate. Don’t forget: it’s important to diversify your portfolio in order to reduce your risk of losing money. BTW, investment funds were invented for people who don’t know or don’t have the interest in investing for themselves. Get an advisor. If you don’t know how or don’t want to fix your own car, you get help. So, get help with investing too.
8. Stay Organized
It can be tough trying keep track of all your finances when you’re trying to save for retirement. That’s why it’s important to stay organized. Keep all of your important documents in one place, and make a budget so you know exactly how much money you have to work with each month. This way, you’ll always know where you stand and will be able to make changes as needed.
In conclusion, saving for retirement can seem like a daunting task, but following these tips will help make it easier. Start small and work your way up, automate your payments so you don’t have to worry about them, and invest your money wisely. With a little planning and effort, you’ll be on your way to a comfortable retirement!
Retire with peace of mind by consulting with a Certified Financial Planner today. Think about what you want that period of your life to look like and take steps towards making it a reality now.
We specialize in assisting people in preparing for retirement. Allow us to evaluate and review your retirement income sources and assist you with retirement planning. Call us at 1-888-554-6661, or click here to book a virtual Zoom meeting.