For most people, it takes time to save enough for retirement. It's important to start planning as early as possible. Otherwise, you may end up with a lot less money than you need to live the way you would like after you retire.
To get started with a plan, follow these simple tips:
- Look at how much time you've got. If you're 10 years away from retiring, your plan will be different than someone with 30 or more years left to save.
- Set clear goals. Figure out how much money you'll need when you retire. Make that your target.
- Compare your choices for savings inside your plan. Not all savings products work the same. Not all give you the same benefits.
- Find out if you have a retirement savings or pension plan at work. They're often the best deal around.
- Track your progress every year. Change your plans when and if you need to.
- Put off saving until it's too late. Your government pension may not be enough for when you retire.
- Put your savings in a bank account and then forget about it. Your money likely won't grow fast enough to meet your goals for retirement.
- Put all your money into one type of savings. Spread your money around into different types of investments. If one way doesn't work out, other ways may be better.
- Do things with your money that you don't understand.
- Forget that if something seems too good to be true, it probably is.
Remember: There are lots of ways to save for your retirement
Make sure you choose the best options for you. Get expert help if you feel you need it.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.