Tax season is finally over. Some of you may regret not contributing to your RRSP this year. Some of you may be wondering whether you earn enough to even consider saving for retirement. For help with simplifying your saving, check out the 5 tips below.
1. Save early
I know
I’m not saying anything new here. But it’s the truth. Putting 20 $ aside each week as of age 25 will save you a big headache at age 45! Your total savings probably won’t be enough, but at least they’re a start. And you’ll always have time to save more each week once you’re able to.
2. Save weekly and not annually
Every time you manage to stash some money away, you can be proud of your efforts and watch your investments grow. It’s easier to put 20 $ into your RRSP each week than to frighten your bank account with a 1 000 $ withdrawal in February.
3. Invest your tax refunds and any other unexpected income
You didn’t expect to receive such a big tax refund? Invest some or all of it. There are two ways to think about saving: as a constraint or as a way to spoil yourself...later in life. You deserve the retirement of your dreams, so start working to make those dreams a reality.
4. And what if you retired later?
I know, I know, that option isn’t very appealing. But consider it for a moment. Delaying your retirement can increase the amount of your pension under the Québec Pension Plan and give you more time to build your savings. Your income will be higher and your expenses lower at the end of your career. That’s when you’ll have more funds available to build your nest egg.
5. Consider phased retirement
Phased retirement gives you the best of both worlds: you work some of the time and are retired for the rest of the time. It can also help give your savings a boost. During phased retirement, you can combine your employment earnings with any retirement income. That way, you get a taste of retired life without necessarily dipping into your retirement savings.
There’s no foolproof formula for saving. You have to make sacrifices, both big and small. I can’t be any more specific because each situation is different and I’m not a financial planner or advisor. But I can tell you one thing: if you think saving is out of the question, talk to a specialist. That person can help you save for a retirement in tune with your goals and personal financial situation.
