Why are your Retirement Savings Important?

RRSP Savings Plan

Being unprepared for retirement is a common thing in Canada. According to a recent survey by the Canadian Securities Administrators and the Manitoba Securities Commission, almost 30% of Manitobans have no retirement savings. That’s not all; of those who do have retirement savings, almost half of them have less than $50,000 in savings.

These are troubling numbers, because saving for retirement is important to ensure that your golden years are comfortable and fruitful. While the government does provide Old Age Security and the Canada Pension Plan, these will not allow you to live the lifestyle you will have grown accustomed to while working. It is important to have savings to draw from in retirement in addition to the money you will receive from these programs.

So, what if you haven’t started saving yet? It’s never too late to start saving for your retirement, because, remember, when it comes to retirement, the best time to plan to plant a tree was yesterday, but the next best time is today. By investing money for your retirement today, you are giving your funds more time to grow. Another thing to keep in mind is that your workplace may offer an RRSP program that may match contributions up to a certain percentage. If you haven’t signed up for this program with your workplace, do so as soon as possible; the employer matching equals a 100% return, and you will never receive that kind of return with any investment!

Even if you do not have a lot of extra money to devote to saving for your retirement, any little bit helps. Start with what you can afford now, because you can always increase your contributions when your circumstances change, whether it’s a raise at work, or you’ve finished repaying some debt.

Check out Cambrian’s Retirement Assessment Calculator to check your retirement savings progress, and consider meeting with a Cambrian financial advisor to work on a retirement plan.