Retirement
It may seem strange to already be thinking about retirement when you’ve just
started working. But hey – you don’t want to work forever do you?
Your new job may have come with a retirement savings program or a pension
plan – if it does try to get some information about it. What kind of program is it?
Under most employer sponsored plans, your employer will set aside a small
portion of your pay cheque (before taxes), and the money goes into a fund that
will be used to provide you with a regular income when you retire. You do not
pay taxes on contributions made by yourself or your employer as long as the
money stays in the plan.
Employer sponsored pension plans – they pay YOU to save!
Some employers will match your retirement contribution dollar for dollar or others will match
a portion of your contribution. Either way – this is free money! Why not take advantage
of this if you can? Talk to your employer to see if they have a pension plan.
If your employer doesn’t have a pension plan – not to worry – you can start one
on your own. There is a lot of information out there on retirement planning. Here
are two savings options that you may want to look into.
Setting Goals and Saving
Registered Retirement Savings Plan (RRSP). More info can be found here:
http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/rrsps-
for-retirement
5 Reasons to Open an RRSP
1. Contributions are tax deductible
2. Savings grow tax free
3. You can convert your RRSP to get regular payments when you retire
4. A spousal RRSP can reduce your combined tax burden
5. You can borrow from your RRSP to buy your first home or pay for your
education
For more info: http://www.getsmarteraboutmoney.ca/en/managing-your-money/
investing/rrsps-for-retirement/Pages/Five-reasons-to-open-an-RRSP.aspx#
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