Many Canadians Have No RRSPs
June 28th, 2008 | by Editor |Financial planning requires, well, planning. A Certified Financial Planner can help you do something too many Canadians put off: getting started.
It’s the cornerstone of wealth-building: invest early, deferring tax whenever possible. Apparently the word’s not getting out, as 4.4 million Canadians have full-time jobs yet no RRSP.
Not surprisingly, the numbers are skewed toward younger workers, who often have trouble putting away any savings. Forty-six percent of the full-time employees with no RRSP are under the age of 34. Eighty-seven percent of this group has a personal income below $50,000.
While it’s often a challenge to pay the bills and save for retirement, it’s a good idea to set up a pre-authorized contribution (PAC) plan as a tool for forced savings. It can be used to withdraw amounts as low as $25 a month toward your RRSP.
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