Even among the many youngest cohort surveyed (18-34 years outdated) six in ten plan to contribute to their RRSPs this 12 months, across the identical share as for the 34-54 age group.
“It’s clear that amid the present financial local weather, Canadians want to stay to what they know by contributing to their RRSP this 12 months,” stated Julie Petrera, Senior Strategist, Consumer Wants at Edward Jones. “RRSPs are a precious retirement financial savings software, the truth is they can be utilized for saving for extra than simply retirement. I discover it promising {that a} excessive portion of younger Canadians are making decisions to save lots of for long-term targets and belief they absolutely perceive the advantages of RRSPs, which can be utilized for a primary residence buy, returning to highschool, and retirement. An Advisor will help decide one of the simplest ways to make use of these accounts for every particular person’s distinctive state of affairs.”
However 12% of all respondents stated they can not afford to make any contributions and 10% plan to take a position elsewhere similar to TFSAs, First House Financial savings Accounts, actual property, and so forth.
“Retirement planning isn’t a one-size-fits-all method. It’s vital to be taught in regards to the choices obtainable and the assorted advantages and restrictions they provide, each speedy and longer-term. With so many components to contemplate for each account sort and particular person state of affairs, partnering with a trusted advisor will help Canadians assume in another way about cash and the way they plan for retirement,” added Petrera. “And as one’s wants and targets are continually altering, it’s essential to not put a plan on autopilot and as an alternative evolve investing methods to handle these adjustments.”
Lately, Doug Darmer, CEO of Retirement Navigator, shared with Wealth Skilled the commonest errors advisors & buyers make in RRSP season.