For most people, Registered Retirement Savings Plans (RRSPs) are a good strategy for investing all through your working years, up to the age of 71. Anyone who files a tax return can open one. There are no age limits.
Here's a quick look at how RRSPs may fit into your life:
Who may NOT want to contribute to an RRSP?
- Children and young workers who pay no tax. In these cases, it may be better to save outside an RRSP. Why? There is no tax advantage to saving in a sheltered plan.
- People who know their retirement income will be low. Why? The extra retirement income they get from their RRSP may disqualify them from government programs to supplement, or add to, their income. If this situation applies to you, you may want to seek professional advice.
How saving early in your RRSP helps: Amy and Amanda's story
Amy and Amanda may be twins, but they are very different when it comes to saving for retirement. To see what decision they made and why, now.
Remember: If you start early, an RRSP can grow for many years
You can keep it open until the end of the calendar year following your 71st birthday. That's a lot of years to grow your savings.
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.