Join the workforce and begin planning your retirement
As soon as we join the workforce, we start to hear about the importance of planning for retirement.
The aging population is a phenomenon we have to take into consideration since it will result in a situation where we'll have more pensioners than workers. What will happen to government pension plans in the future? Will the governments be able to maintain them?
To ensure your future, it is best to act now. Sound financial planning is essential if you want to reach your goals. Of course, saving requires some discipline but it is much easier to be disciplined when you know you'll be rewarded for your efforts!
And if your plans change? You should review your financial planning at every major event in your life, like a marriage, the birth of a child, a salary increase or a major purchase.
When small savings grow
By contributing to an RRSP RRSP: (Registered Retirement Savings Plan) Savings method that allows you to put savings in tax-sheltered investments during your active life to supplement your income when you retire. Your RRSP savings will not be taxed until you withdraw them. as early as possible, you put time on your side. The magic of compound return Return: Amount of interest or dividends received from an investment in a given period of time. s is an excellent reason to start saving for your retirement now. The interest on your investment Investment: Amount of money invested to generate profit. is tax-sheltered Tax-sheltered: You will not have to pay income taxes on money you invest in a tax-sheltered investment (e.g., RRSP) until you withdraw the funds. , as well as your savings. And since even a modest contribution shows solid growth over the years, getting into the habit of making regular contributions will serve you well in the long run.
Your strategy will depend on whether you have just graduated or been in the workforce for a few years. Your caisse advisor can show you solutions that fit your goals and financial situation.
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This column was written by Mélanie Lefebvre, Youth Focus Advisor at the Caisse populaire Desjardins de Mont-Tremblant.
