Pre-Retiree

You don’t need a lot of money to begin saving for retirement. It’s not always possible to invest large amounts to save for retirement, but it’s also not necessary.

Peter Wouters, Director, Tax Retirement & Estate Planning Media headlines and market uncertainty have left many aging investors with the feeling “I’m worried that I won’t have enough”. In this first segment of Life & Money Matters, Peter shares some of the top retirement planning concerns among investors.

Did you know the Canadian government gives financial incentives to help you save for your retirement? Find out more about registered retirement savings plans. What is an RRSP? Simply put, a Registered Retirement Savings Plan, or RRSP, is a special type of savings account that helps Canadians save for their retirement. How does an RRSP work? Contributions you make to an RRSP are tax-deferred, meaning the money is only taxed when you withdraw it. For most, withdrawing from your RRSP at a later point in life means paying much less tax. Any money put into an RRSP, up to the annual limit, reduces your taxable income for that year. Your annual limit is a percentage of your earned income plus unused room from earlier years. You can hold a variety of investments in your RRSP, like stocks, bonds, GICs, and mutual funds. Because income earned inside an RRSP isn't subject to tax until it's withdrawn, RRSPs are a powerful way to save for your retirement. Find more tips and tools at sunlife.ca. Life's brighter under the sun. Learn more about RRSPs: https://www.sunlife.ca/ca/Investments/RRSP+TFSA+and+RESP/Registered+retirement+savings+plan+RRSP?vgnLocale=en_CA

To ensure you have the retirement you dream of, there are a few important points you may want to work out before that day comes.