With some workplace pension plans, the company does all of the saving for you. Other plans require you to contribute as well.
On top of that, many plans let you make what they call voluntary additional contributions. This means you can put extra savings into your plan if you wish. The best deal is when your employer matches your voluntary additional contributions.
Example: Some companies contribute 50 cents for every extra dollar you save. That's like getting an amazing 50% return on your savings, before you invest!
Contributing extra to your retirement savings: Lenny and Lucy's story
We all know that the more you save, the more income you will have when you retire. But how much difference does it really make? Ask Lenny and Lucy. Only Lucy chose to save extra in her pension plan. To see how much more this gave her when she retired, read Lenny and Lucy's story.
Tip: Always compare your workplace plan with other options you have to save and invest for retirement. You may be able to make more investing your retirement savings elsewhere.
Remember: For most people, saving for retirement is a long-term process
The more you contribute, the more your savings will grow over the years. And if your employer matches your extra contributions, it's like getting free money when you retire.
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.