{"id":148,"date":"2021-05-29T11:54:00","date_gmt":"2021-05-29T11:54:00","guid":{"rendered":"https:\/\/www.cashwaves.ca\/blog\/?p=148"},"modified":"2026-09-16T09:44:01","modified_gmt":"2026-09-16T09:44:01","slug":"in-what-manner-to-start-savings-for-retirement","status":"publish","type":"post","link":"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/","title":{"rendered":"In What Manner To Start Savings For Retirement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#1_Start_With_the_Retirement_Lifestyle_You_Want\" >1. Start With the Retirement Lifestyle You Want<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Housing\" >Housing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Transportation\" >Transportation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Travel_and_entertainment\" >Travel and entertainment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Healthcare_and_insurance\" >Healthcare and insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Family_responsibilities\" >Family responsibilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Debt\" >Debt<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#2_Estimate_Your_Future_Retirement_Spending\" >2. Estimate Your Future Retirement Spending<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Remember_inflation\" >Remember inflation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#3_Identify_the_Retirement_Income_You_May_Already_Have\" >3. Identify the Retirement Income You May Already Have<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Canada_Pension_Plan\" >Canada Pension Plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Old_Age_Security\" >Old Age Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Workplace_pension\" >Workplace pension<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Personal_savings_and_investments\" >Personal savings and investments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#4_Understand_How_CPP_Fits_Into_Your_Savings_For_Retirement_Plan\" >4. Understand How CPP Fits Into Your Savings For Retirement Plan<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Dont_plan_using_the_maximum_CPP_amount_automatically\" >Don&#8217;t plan using the maximum CPP amount automatically<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#5_Understand_OAS_Before_Counting_It_as_Retirement_Income\" >5. Understand OAS Before Counting It as Retirement Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#6_Check_Your_Workplace_Retirement_Plan_Before_Opening_Something_New\" >6. Check Your Workplace Retirement Plan Before Opening Something New<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Defined_benefit_pension\" >Defined benefit pension<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Defined_contribution_pension\" >Defined contribution pension<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Group_RRSP\" >Group RRSP<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#7_Understand_RRSPs_Before_Contributing\" >7. Understand RRSPs Before Contributing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#2026_RRSP_dollar_limit\" >2026 RRSP dollar limit<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#8_Understand_TFSAs_as_a_Retirement_Tool\" >8. Understand TFSAs as a Retirement Tool<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#2026_TFSA_annual_dollar_limit\" >2026 TFSA annual dollar limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Be_careful_when_replacing_TFSA_withdrawals\" >Be careful when replacing TFSA withdrawals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#9_RRSP_vs_TFSA_Which_Is_Better_for_Retirement\" >9. RRSP vs TFSA: Which Is Better for Retirement?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#When_an_RRSP_may_be_attractive\" >When an RRSP may be attractive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#When_a_TFSA_may_be_attractive\" >When a TFSA may be attractive<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#10_Calculate_Your_Retirement_Income_Gap\" >10. Calculate Your Retirement Income Gap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#11_Decide_How_Much_You_Can_Save_From_Each_Paycheque\" >11. Decide How Much You Can Save From Each Paycheque<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#12_Automate_Your_Retirement_Contributions\" >12. Automate Your Retirement Contributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#13_Increase_Contributions_When_Your_Income_Rises\" >13. Increase Contributions When Your Income Rises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#14_Redirect_Finished_Debt_Payments_Toward_Retirement\" >14. Redirect Finished Debt Payments Toward Retirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#15_Balance_Retirement_Saving_With_an_Emergency_Fund\" >15. Balance Retirement Saving With an Emergency Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#16_Dont_Ignore_High-Cost_Debt\" >16. Don&#8217;t Ignore High-Cost Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#17_Choose_Investments_Based_on_When_Youll_Need_the_Money\" >17. Choose Investments Based on When You&#8217;ll Need the Money<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#A_longer_timeline_may_allow_more_market_risk\" >A longer timeline may allow more market risk<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#18_Diversification_Matters\" >18. Diversification Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#19_Watch_Investment_Fees\" >19. Watch Investment Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#20_Dont_Assume_High_Returns_Will_Fix_Low_Savings\" >20. Don&#8217;t Assume High Returns Will Fix Low Savings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#21_What_If_Youre_Starting_Retirement_Savings_Late\" >21. What If You&#8217;re Starting Retirement Savings Late?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Increase_the_savings_rate\" >Increase the savings rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Use_future_raises\" >Use future raises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Review_unused_RRSP_and_TFSA_room\" >Review unused RRSP and TFSA room<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Review_retirement_age\" >Review retirement age<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Reduce_high-cost_debt\" >Reduce high-cost debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Reassess_expected_retirement_spending\" >Reassess expected retirement spending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Dont_take_reckless_investment_risk_to_%E2%80%9Ccatch_up%E2%80%9D\" >Don&#8217;t take reckless investment risk to \u201ccatch up\u201d<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#22_Retirement_Saving_for_Self-Employed_Canadians\" >22. Retirement Saving for Self-Employed Canadians<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#23_Couples_Should_Plan_Individually_and_Together\" >23. Couples Should Plan Individually and Together<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#24_Dont_Forget_Taxes_in_Retirement\" >24. Don&#8217;t Forget Taxes in Retirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#25_Retirement_Saving_Doesnt_End_the_Day_You_Retire\" >25. Retirement Saving Doesn&#8217;t End the Day You Retire<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Accumulation\" >Accumulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Decumulation\" >Decumulation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#A_Practical_Retirement_Savings_Order\" >A Practical Retirement Savings Order<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Example_Building_a_Retirement_Plan_From_Scratch\" >Example: Building a Retirement Plan From Scratch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#How_Often_Should_You_Review_Your_Retirement_Plan\" >How Often Should You Review Your Retirement Plan?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Savings_rate\" >Savings rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Retirement_balances\" >Retirement balances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Investment_mix\" >Investment mix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Pension_estimates\" >Pension estimates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Retirement_spending\" >Retirement spending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-64\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Debt-2\" >Debt<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-65\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Common_Retirement-Saving_Mistakes_to_Avoid\" >Common Retirement-Saving Mistakes to Avoid<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-66\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Waiting_for_the_%E2%80%9Cperfect%E2%80%9D_time\" >Waiting for the \u201cperfect\u201d time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-67\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Assuming_CPP_and_OAS_will_cover_everything\" >Assuming CPP and OAS will cover everything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-68\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Ignoring_workplace_benefits\" >Ignoring workplace benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-69\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Contributing_without_checking_account_room\" >Contributing without checking account room<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-70\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Saving_while_ignoring_unaffordable_high-cost_debt\" >Saving while ignoring unaffordable high-cost debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-71\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Taking_too_much_investment_risk\" >Taking too much investment risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-72\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Ignoring_investment_fees\" >Ignoring investment fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-73\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Never_updating_the_plan\" >Never updating the plan<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-74\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Start_With_One_Retirement_Action_This_Month\" >Start With One Retirement Action This Month<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-75\" href=\"https:\/\/www.cashwaves.ca\/blog\/in-what-manner-to-start-savings-for-retirement\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">Starting <strong>Savings For Retirement<\/strong> can feel complicated because retirement planning in Canada involves more than opening an RRSP and depositing money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your eventual retirement income may come from several sources:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)<\/li>\n\n\n\n<li>Old Age Security (OAS)<\/li>\n\n\n\n<li>a workplace pension<\/li>\n\n\n\n<li>an employer-sponsored group RRSP<\/li>\n\n\n\n<li>your personal RRSP<\/li>\n\n\n\n<li>your TFSA<\/li>\n\n\n\n<li>non-registered investments<\/li>\n\n\n\n<li>other savings or income<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The right starting point is therefore not:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cHow much should I put into an RRSP?\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cHow much income might I need in retirement, what income may already be available, and how large is the remaining gap?\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/retirement-planning\/start-saving-retirement.html\" target=\"_blank\" rel=\"noopener\">Financial Consumer Agency of Canada&#8217;s retirement-planning guidance<\/a> recommends considering expected retirement expenses, housing, debt, travel, family obligations and other lifestyle factors before deciding how much you may need to save.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your current finances are not organized yet, CashWaves&#8217; guide to <a href=\"https:\/\/www.cashwaves.ca\/blog\/how-to-make-a-budget-tailored-to-the-canadian-lifestyle\/\">making a budget tailored to the Canadian lifestyle<\/a> is a useful starting point.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Start_With_the_Retirement_Lifestyle_You_Want\"><\/span>1. Start With the Retirement Lifestyle You Want<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No single retirement-savings number is right for every Canadian.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One person may plan to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>retire at 60<\/li>\n\n\n\n<li>travel frequently<\/li>\n\n\n\n<li>keep a detached home<\/li>\n\n\n\n<li>support family members<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Another may:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>retire at 68<\/li>\n\n\n\n<li>live mortgage-free<\/li>\n\n\n\n<li>travel occasionally<\/li>\n\n\n\n<li>have a workplace pension<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Their savings needs could be very different.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start by estimating what your retirement may look like.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think about:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Housing\"><\/span>Housing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Will you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>own your home mortgage-free?<\/li>\n\n\n\n<li>still have a mortgage?<\/li>\n\n\n\n<li>rent?<\/li>\n\n\n\n<li>downsize?<\/li>\n\n\n\n<li>move to another province?<\/li>\n\n\n\n<li>spend part of the year outside Canada?<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transportation\"><\/span>Transportation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Will you still own one or more vehicles?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will commuting costs fall after retirement?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Travel_and_entertainment\"><\/span>Travel and entertainment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Do you expect retirement to involve frequent travel, hobbies or recreation?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Healthcare_and_insurance\"><\/span>Healthcare and insurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Some employment benefits may change or end after you retire.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Family_responsibilities\"><\/span>Family responsibilities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Will you expect to help adult children, grandchildren, a spouse or another family member?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Debt\"><\/span>Debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Will you still have:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a mortgage<\/li>\n\n\n\n<li>line of credit<\/li>\n\n\n\n<li>vehicle loan<\/li>\n\n\n\n<li>credit-card balance<\/li>\n\n\n\n<li>other debt?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These details matter much more than an arbitrary rule saying everyone must save the same percentage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Estimate_Your_Future_Retirement_Spending\"><\/span>2. Estimate Your Future Retirement Spending<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Look at how much you spend today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then separate expenses that may continue from expenses that may disappear or change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Expense<\/th><th>Today<\/th><th>Possible Retirement Change<\/th><\/tr><tr><td>Mortgage<\/td><td>$1,800<\/td><td>May end before retirement<\/td><\/tr><tr><td>Groceries<\/td><td>$700<\/td><td>Likely continues<\/td><\/tr><tr><td>Work commuting<\/td><td>$400<\/td><td>Could decrease<\/td><\/tr><tr><td>Utilities<\/td><td>$350<\/td><td>Likely continues<\/td><\/tr><tr><td>Travel<\/td><td>$150<\/td><td>Could increase<\/td><\/tr><tr><td>Retirement savings<\/td><td>$500<\/td><td>May stop after retirement<\/td><\/tr><tr><td>Healthcare<\/td><td>$100<\/td><td>Could change<\/td><\/tr><tr><td>Hobbies<\/td><td>$150<\/td><td>Could increase<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This exercise gives you a better retirement estimate than simply assuming you will need a fixed percentage of today&#8217;s salary.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Remember_inflation\"><\/span>Remember inflation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A dollar today may not buy the same amount decades from now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose something costs <strong>$50,000 per year today<\/strong> and inflation averaged 2.5% annually for 20 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A simplified calculation would put the future equivalent at roughly:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$81,900 per year<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is only an illustration. Actual inflation will vary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The important point is that retirement planning should account for future purchasing power, not just today&#8217;s prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Identify_the_Retirement_Income_You_May_Already_Have\"><\/span>3. Identify the Retirement Income You May Already Have<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your retirement savings do not necessarily need to fund your entire retirement alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Potential income sources include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Canada_Pension_Plan\"><\/span>Canada Pension Plan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CPP provides retirement income based largely on your contribution history and earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">People who worked primarily in Quebec may instead receive benefits through the Quebec Pension Plan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Old_Age_Security\"><\/span>Old Age Security<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">OAS is a federal pension available to eligible seniors who meet applicable age and residency requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Workplace_pension\"><\/span>Workplace pension<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your employer may provide:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a defined benefit pension<\/li>\n\n\n\n<li>a defined contribution pension<\/li>\n\n\n\n<li>a group RRSP<\/li>\n\n\n\n<li>another workplace retirement arrangement<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Personal_savings_and_investments\"><\/span>Personal savings and investments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRSP<\/li>\n\n\n\n<li>TFSA<\/li>\n\n\n\n<li>non-registered investments<\/li>\n\n\n\n<li>cash savings<\/li>\n\n\n\n<li>other income-producing assets<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s guide to <a href=\"https:\/\/www.canada.ca\/en\/services\/life-events\/retirement\/sources-income.html\" target=\"_blank\" rel=\"noopener\">sources of income during retirement<\/a> provides a useful overview.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Understand_How_CPP_Fits_Into_Your_Savings_For_Retirement_Plan\"><\/span>4. Understand How CPP Fits Into Your Savings For Retirement Plan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Canada Pension Plan retirement pension<\/strong> can generally begin between ages <strong>60 and 70<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Age 65 is the standard starting point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Starting earlier generally means accepting a smaller monthly benefit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Delaying beyond age 65 generally results in a larger monthly benefit, up to age 70.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate decision depends on factors such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your financial situation<\/li>\n\n\n\n<li>health<\/li>\n\n\n\n<li>other retirement income<\/li>\n\n\n\n<li>whether you continue working<\/li>\n\n\n\n<li>how long you expect to need retirement income<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There is no universally correct starting age.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See the Government of Canada&#8217;s guide on <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/when-start.html\" target=\"_blank\" rel=\"noopener\">when to start your CPP retirement pension<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dont_plan_using_the_maximum_CPP_amount_automatically\"><\/span>Don&#8217;t plan using the maximum CPP amount automatically<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your CPP payment depends on your own contribution history.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A person should not assume that the published maximum amount is what they will receive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your CPP Statement of Contributions can provide more relevant information for planning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Understand_OAS_Before_Counting_It_as_Retirement_Income\"><\/span>5. Understand OAS Before Counting It as Retirement Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Old Age Security works differently from CPP.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">OAS eligibility is based primarily on age and Canadian residency requirements rather than employment contributions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eligible individuals can generally begin OAS at <strong>65<\/strong> or delay it as late as <strong>70<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Delaying can increase the monthly payment, but delaying is not automatically better for every person.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, people who may qualify for the Guaranteed Income Supplement should understand how delaying OAS could affect their situation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review the Government of Canada&#8217;s current guidance on <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/old-age-security\/when-start.html\" target=\"_blank\" rel=\"noopener\">when to start OAS<\/a> before making a decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Check_Your_Workplace_Retirement_Plan_Before_Opening_Something_New\"><\/span>6. Check Your Workplace Retirement Plan Before Opening Something New<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most commonly overlooked retirement resources is already available through work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask your employer or human-resources department:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Do I have a pension plan?<\/li>\n\n\n\n<li>Is it defined benefit or defined contribution?<\/li>\n\n\n\n<li>Do I have a group RRSP?<\/li>\n\n\n\n<li>Does my employer contribute?<\/li>\n\n\n\n<li>Does my employer match my contributions?<\/li>\n\n\n\n<li>How much do I need to contribute?<\/li>\n\n\n\n<li>What investment options are available?<\/li>\n\n\n\n<li>What fees apply?<\/li>\n\n\n\n<li>What happens if I leave the employer?<\/li>\n\n\n\n<li>Is the pension indexed to inflation?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/retirement-planning\/employer-sponsored-pension.html\" target=\"_blank\" rel=\"noopener\">workplace pension guide<\/a> explains the major types of employer-sponsored arrangements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Defined_benefit_pension\"><\/span>Defined benefit pension<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A defined benefit pension generally promises retirement income based on a plan formula that may consider factors such as salary and years of service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investment management is generally handled by the pension plan rather than by the employee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Defined_contribution_pension\"><\/span>Defined contribution pension<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With a defined contribution pension, contributions go into an account and the eventual retirement value depends partly on contributions and investment performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Group_RRSP\"><\/span>Group RRSP<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A group RRSP is sponsored by an employer but the employee generally has an individual RRSP account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some employers may contribute to the plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Always learn the details of your own workplace arrangement rather than assuming another employer&#8217;s rules apply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Understand_RRSPs_Before_Contributing\"><\/span>7. Understand RRSPs Before Contributing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>Registered Retirement Savings Plan (RRSP)<\/strong> is specifically designed to support retirement savings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Qualifying RRSP contributions can generally be deducted from taxable income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investments may grow inside the plan without annual tax on the income while the money remains in the RRSP.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Withdrawals are generally taxable income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can review the CRA&#8217;s official <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/rrsps-related-plans\/registered-retirement-savings-plan-rrsp.html\" target=\"_blank\" rel=\"noopener\">RRSP information<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2026_RRSP_dollar_limit\"><\/span>2026 RRSP dollar limit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The federal <strong>RRSP dollar limit for 2026 is $33,810<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does <strong>not<\/strong> mean everyone can contribute $33,810.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your personal RRSP deduction limit depends on factors that may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>unused contribution room from earlier years<\/li>\n\n\n\n<li>earned income from the previous year<\/li>\n\n\n\n<li>the annual RRSP dollar limit<\/li>\n\n\n\n<li>pension adjustments<\/li>\n\n\n\n<li>other applicable adjustments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The CRA generally calculates new RRSP room using up to <strong>18% of prior-year earned income<\/strong>, subject to the applicable annual limit and adjustments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check your own deduction limit rather than relying on the national maximum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your CRA notice of assessment or CRA account can help identify your personal amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Understand_TFSAs_as_a_Retirement_Tool\"><\/span>8. Understand TFSAs as a Retirement Tool<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its name, a <strong>Tax-Free Savings Account<\/strong> can hold more than cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the type of TFSA and financial institution, it may hold qualified assets such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>savings deposits<\/li>\n\n\n\n<li>GICs<\/li>\n\n\n\n<li>bonds<\/li>\n\n\n\n<li>mutual funds<\/li>\n\n\n\n<li>exchange-traded funds<\/li>\n\n\n\n<li>stocks<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">TFSA contributions are not tax-deductible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, qualifying investment income and withdrawals are generally tax-free.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read the CRA&#8217;s explanation of <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/tax-free-savings-account\/what.html\" target=\"_blank\" rel=\"noopener\">how a TFSA works<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2026_TFSA_annual_dollar_limit\"><\/span>2026 TFSA annual dollar limit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The TFSA annual dollar limit for <strong>2026 is $7,000<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Again, that is not necessarily your personal available room.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Available room depends on factors such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>eligibility in previous years<\/li>\n\n\n\n<li>unused contribution room<\/li>\n\n\n\n<li>past contributions<\/li>\n\n\n\n<li>previous withdrawals<\/li>\n\n\n\n<li>Canadian residency history<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The CRA recommends calculating your actual room before contributing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See the official <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/tax-free-savings-account\/contributing\/calculate-room.html\" target=\"_blank\" rel=\"noopener\">TFSA contribution-room guide<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Be_careful_when_replacing_TFSA_withdrawals\"><\/span>Be careful when replacing TFSA withdrawals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A withdrawal generally creates new contribution room in the <strong>following calendar year<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It does not automatically mean you can withdraw and replace the same money immediately during the current year if you have no remaining contribution room.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That distinction can help prevent accidental over-contributions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_RRSP_vs_TFSA_Which_Is_Better_for_Retirement\"><\/span>9. RRSP vs TFSA: Which Is Better for Retirement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Neither account is automatically better.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They have different tax structures.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Feature<\/th><th>RRSP<\/th><th>TFSA<\/th><\/tr><tr><td>Contributions tax-deductible<\/td><td>Generally, if deduction room is available<\/td><td>No<\/td><\/tr><tr><td>Investment growth<\/td><td>Tax-deferred<\/td><td>Generally tax-free<\/td><\/tr><tr><td>Withdrawals<\/td><td>Generally taxable<\/td><td>Generally tax-free<\/td><\/tr><tr><td>Withdrawal restores contribution room<\/td><td>Generally no<\/td><td>Generally yes, in the following calendar year<\/td><\/tr><tr><td>Designed specifically for retirement<\/td><td>Yes<\/td><td>No, but widely usable for retirement savings<\/td><\/tr><tr><td>Contribution room<\/td><td>Individual RRSP limit<\/td><td>Individual TFSA room<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_an_RRSP_may_be_attractive\"><\/span>When an RRSP may be attractive<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An RRSP may deserve consideration when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>you have available deduction room<\/li>\n\n\n\n<li>the tax deduction is valuable at your current tax rate<\/li>\n\n\n\n<li>you are saving for long-term retirement<\/li>\n\n\n\n<li>you have an employer group RRSP contribution<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_a_TFSA_may_be_attractive\"><\/span>When a TFSA may be attractive<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A TFSA may deserve consideration when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>flexibility is important<\/li>\n\n\n\n<li>you expect to make tax-free withdrawals<\/li>\n\n\n\n<li>you&#8217;re building retirement savings but may need access before retirement<\/li>\n\n\n\n<li>you have available TFSA contribution room<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Many Canadians use both.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which account should receive the next dollar depends on your income, tax situation, retirement goals, employer plan and available contribution room.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For individualized tax or investment decisions, consider speaking with a qualified professional.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Calculate_Your_Retirement_Income_Gap\"><\/span>10. Calculate Your Retirement Income Gap<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is where retirement planning becomes useful.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you estimate that in retirement you will need:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$60,000 per year before tax<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You expect:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>CPP and OAS: $22,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Workplace pension: $18,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That leaves:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$60,000 \u2212 $22,000 \u2212 $18,000 = $20,000 annual gap<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your personal savings and investments may need to help cover that gap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a simplified hypothetical example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Real retirement planning should consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>taxes<\/li>\n\n\n\n<li>inflation<\/li>\n\n\n\n<li>investment returns<\/li>\n\n\n\n<li>longevity<\/li>\n\n\n\n<li>changing spending<\/li>\n\n\n\n<li>pension indexing<\/li>\n\n\n\n<li>benefit eligibility<\/li>\n\n\n\n<li>withdrawal rates<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada provides a free <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/retirement-income-calculator.html\" target=\"_blank\" rel=\"noopener\">Canadian Retirement Income Calculator<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can incorporate information about:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CPP or QPP<\/li>\n\n\n\n<li>OAS<\/li>\n\n\n\n<li>workplace pensions<\/li>\n\n\n\n<li>RRSPs<\/li>\n\n\n\n<li>TFSAs<\/li>\n\n\n\n<li>other retirement income<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">That is a more useful starting point than guessing at one universal retirement target.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_Decide_How_Much_You_Can_Save_From_Each_Paycheque\"><\/span>11. Decide How Much You Can Save From Each Paycheque<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once you know the gap you&#8217;re trying to fill, determine how much your current budget can support.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you decide to save:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$200 every two weeks<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With 26 pay periods:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$200 \u00d7 26 = $5,200 per year<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you increase it later to:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$300 every two weeks<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">then:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$300 \u00d7 26 = $7,800 per year<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These examples show contributions only. Investment growth, losses, fees and taxes are not included.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most effective contribution amount is one you can sustain while still covering essential expenses and other important financial priorities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_Automate_Your_Retirement_Contributions\"><\/span>12. Automate Your Retirement Contributions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Automation can reduce the temptation to spend money before saving it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You could arrange for money to move automatically:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Paycheque \u2192 retirement account<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">rather than:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Paycheque \u2192 spending \u2192 save whatever remains<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th class=\"has-text-align-right\" data-align=\"right\">Biweekly Contribution<\/th><th class=\"has-text-align-right\" data-align=\"right\">Contributions Over 1 Year<\/th><\/tr><tr><td class=\"has-text-align-right\" data-align=\"right\">$25<\/td><td class=\"has-text-align-right\" data-align=\"right\">$650<\/td><\/tr><tr><td class=\"has-text-align-right\" data-align=\"right\">$50<\/td><td class=\"has-text-align-right\" data-align=\"right\">$1,300<\/td><\/tr><tr><td class=\"has-text-align-right\" data-align=\"right\">$100<\/td><td class=\"has-text-align-right\" data-align=\"right\">$2,600<\/td><\/tr><tr><td class=\"has-text-align-right\" data-align=\"right\">$200<\/td><td class=\"has-text-align-right\" data-align=\"right\">$5,200<\/td><\/tr><tr><td class=\"has-text-align-right\" data-align=\"right\">$300<\/td><td class=\"has-text-align-right\" data-align=\"right\">$7,800<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These are contribution examples only and do not represent investment returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC recommends saving a portion of each paycheque when affordable and notes that automatic deposits can help make retirement saving consistent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"13_Increase_Contributions_When_Your_Income_Rises\"><\/span>13. Increase Contributions When Your Income Rises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One practical way to increase retirement savings without making a large immediate lifestyle cut is to redirect part of future raises.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, suppose your take-home income increases by:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$300 per month<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might choose:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$150 \u2192 retirement savings<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$150 \u2192 additional spending or another goal<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact split is personal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The principle is that your savings can rise alongside your income instead of allowing your entire raise to disappear into higher spending.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"14_Redirect_Finished_Debt_Payments_Toward_Retirement\"><\/span>14. Redirect Finished Debt Payments Toward Retirement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Paying off debt can create another savings opportunity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you have been paying:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$350 per month on a car loan<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The loan ends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than allowing the full $350 to become extra spending, you could redirect some or all of it to retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At $350 per month:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$350 \u00d7 12 = $4,200 per year<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your lifestyle has already adapted to living without that money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Redirecting the payment can increase retirement savings without creating an entirely new monthly burden.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"15_Balance_Retirement_Saving_With_an_Emergency_Fund\"><\/span>15. Balance Retirement Saving With an Emergency Fund<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement savings are important, but so is having accessible emergency money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without an emergency fund, an unexpected expense may force you to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>use expensive credit<\/li>\n\n\n\n<li>take on a loan<\/li>\n\n\n\n<li>carry a credit-card balance<\/li>\n\n\n\n<li>potentially withdraw long-term savings<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC recommends gradually building an emergency fund and suggests that a longer-term target may be approximately <strong>three to six months of regular expenses or income<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can review the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/savings-investments\/setting-up-emergency-funds.html\" target=\"_blank\" rel=\"noopener\">emergency-fund guidance<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re starting from zero, you don&#8217;t necessarily need to complete a large emergency fund before contributing anything toward retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A staged approach may work better:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>build a small cash buffer<\/li>\n\n\n\n<li>contribute enough to understand or take advantage of valuable workplace benefits where appropriate<\/li>\n\n\n\n<li>reduce expensive debt<\/li>\n\n\n\n<li>expand emergency savings<\/li>\n\n\n\n<li>increase long-term retirement contributions<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The exact order depends on your situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"16_Dont_Ignore_High-Cost_Debt\"><\/span>16. Don&#8217;t Ignore High-Cost Debt<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine you have a credit-card balance charging a high interest rate while also investing aggressively for retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investment returns are uncertain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Credit-card interest charges in your agreement are not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That doesn&#8217;t mean retirement contributions must always stop completely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, an employer pension or group plan may involve contributions or benefits that deserve separate consideration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But high-cost consumer debt should not be ignored simply because retirement feels more important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/responsible-lending.html\">Responsible Lending guidance<\/a> emphasizes affordability and avoiding short-term borrowing as a long-term financial strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For debt-repayment guidance, see the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/debt\/paying-debt.html\" target=\"_blank\" rel=\"noopener\">paying-back-debt resource<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"17_Choose_Investments_Based_on_When_Youll_Need_the_Money\"><\/span>17. Choose Investments Based on When You&#8217;ll Need the Money<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Opening an RRSP or TFSA does not automatically determine how your money is invested.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The account is the <strong>container<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The investments are what you hold inside that container.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the account and provider, investments may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash<\/li>\n\n\n\n<li>GICs<\/li>\n\n\n\n<li>bonds<\/li>\n\n\n\n<li>mutual funds<\/li>\n\n\n\n<li>exchange-traded funds<\/li>\n\n\n\n<li>stocks<\/li>\n\n\n\n<li>other qualified investments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Your choices should reflect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>time until retirement<\/li>\n\n\n\n<li>ability to tolerate losses<\/li>\n\n\n\n<li>financial circumstances<\/li>\n\n\n\n<li>other income sources<\/li>\n\n\n\n<li>goals<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_longer_timeline_may_allow_more_market_risk\"><\/span>A longer timeline may allow more market risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Someone in their 20s or 30s may have decades before needing retirement money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Someone retiring next year may have a very different risk capacity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does not mean age alone determines the appropriate investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Personal circumstances matter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/savings-investments\/investing-basics.html\" target=\"_blank\" rel=\"noopener\">investing basics guide<\/a> explains the relationship between financial goals, risk and investment horizon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"18_Diversification_Matters\"><\/span>18. Diversification Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Concentrating all retirement money in one company, industry or asset can create unnecessary risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Diversification means spreading investments across different assets rather than depending on one investment to fund your future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate mix may involve different:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>companies<\/li>\n\n\n\n<li>industries<\/li>\n\n\n\n<li>geographic markets<\/li>\n\n\n\n<li>fixed-income investments<\/li>\n\n\n\n<li>equity investments<\/li>\n\n\n\n<li>asset classes<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Diversification cannot eliminate all investment risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Its purpose is to reduce dependence on one specific investment outcome.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"19_Watch_Investment_Fees\"><\/span>19. Watch Investment Fees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement investing may continue for decades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That makes fees important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Potential charges may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>management fees<\/li>\n\n\n\n<li>fund expenses<\/li>\n\n\n\n<li>trading commissions<\/li>\n\n\n\n<li>advisory fees<\/li>\n\n\n\n<li>administrative fees<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Consider two investments with similar gross returns but different costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over a long period, the higher-cost option may leave less money available for retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before investing, ask:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What does this investment cost each year?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What am I receiving for that fee?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Are there additional transaction or account costs?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don&#8217;t choose an investment based only on past returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"20_Dont_Assume_High_Returns_Will_Fix_Low_Savings\"><\/span>20. Don&#8217;t Assume High Returns Will Fix Low Savings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investment growth can help build retirement wealth, but it should not be used as an excuse to contribute too little.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be cautious of anyone promising:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>guaranteed high investment returns<\/li>\n\n\n\n<li>unusually high returns with little or no risk<\/li>\n\n\n\n<li>guaranteed retirement wealth<\/li>\n\n\n\n<li>a secret investment strategy<\/li>\n\n\n\n<li>time-sensitive pressure to send money<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A realistic retirement plan should still work using reasonable assumptions rather than depending on an extraordinary investment outcome.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"21_What_If_Youre_Starting_Retirement_Savings_Late\"><\/span>21. What If You&#8217;re Starting Retirement Savings Late?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Starting later does not mean there is no point saving.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It means you may need to make more deliberate choices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Possible steps include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increase_the_savings_rate\"><\/span>Increase the savings rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If affordable, contribute a larger share of current income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Use_future_raises\"><\/span>Use future raises<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Redirect part of future income increases into retirement accounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Review_unused_RRSP_and_TFSA_room\"><\/span>Review unused RRSP and TFSA room<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You may have unused room, but verify your personal limits before contributing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Review_retirement_age\"><\/span>Review retirement age<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Working longer may:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>provide additional saving years<\/li>\n\n\n\n<li>shorten the number of years savings must support<\/li>\n\n\n\n<li>affect the timing of CPP and OAS<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduce_high-cost_debt\"><\/span>Reduce high-cost debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Entering retirement with fewer required debt payments may reduce the income needed each month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reassess_expected_retirement_spending\"><\/span>Reassess expected retirement spending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Separating essential retirement spending from discretionary goals can make planning clearer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dont_take_reckless_investment_risk_to_%E2%80%9Ccatch_up%E2%80%9D\"><\/span>Don&#8217;t take reckless investment risk to \u201ccatch up\u201d<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Starting late does not make speculative investing safer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trying to replace lost time by taking excessive risk could reduce savings rather than increase them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"22_Retirement_Saving_for_Self-Employed_Canadians\"><\/span>22. Retirement Saving for Self-Employed Canadians<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Self-employed workers may not have an employer pension or employer RRSP contribution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That makes deliberate retirement planning particularly important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Potential retirement-income sources may still include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CPP or QPP, depending on applicable participation and contributions<\/li>\n\n\n\n<li>OAS, if eligible<\/li>\n\n\n\n<li>RRSP savings<\/li>\n\n\n\n<li>TFSA savings<\/li>\n\n\n\n<li>non-registered investments<\/li>\n\n\n\n<li>business assets or other income<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Because income can vary, one approach is to calculate contributions as part of regular business cash-flow planning rather than waiting until year-end to see what&#8217;s left.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if retirement saving is affordable, you might set aside a percentage of each payment or transfer a fixed amount monthly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Self-employed individuals should also understand the tax implications of RRSP contributions and investment income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"23_Couples_Should_Plan_Individually_and_Together\"><\/span>23. Couples Should Plan Individually and Together<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A household retirement plan should consider both partners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>each person&#8217;s CPP\/QPP estimate<\/li>\n\n\n\n<li>each person&#8217;s OAS eligibility<\/li>\n\n\n\n<li>workplace pensions<\/li>\n\n\n\n<li>individual RRSPs<\/li>\n\n\n\n<li>individual TFSAs<\/li>\n\n\n\n<li>age differences<\/li>\n\n\n\n<li>expected retirement dates<\/li>\n\n\n\n<li>survivor considerations<\/li>\n\n\n\n<li>housing<\/li>\n\n\n\n<li>household expenses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s Retirement Income Calculator recommends that spouses or common-law partners complete calculations individually and then review the combined results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Planning only around one partner&#8217;s income can leave gaps.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"24_Dont_Forget_Taxes_in_Retirement\"><\/span>24. Don&#8217;t Forget Taxes in Retirement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not all retirement income receives the same tax treatment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRSP withdrawals are generally taxable<\/li>\n\n\n\n<li>eventual RRIF withdrawals are generally taxable<\/li>\n\n\n\n<li>CPP is taxable income<\/li>\n\n\n\n<li>OAS is taxable income<\/li>\n\n\n\n<li>TFSA withdrawals are generally tax-free<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This means two households with the same amount of savings may have different after-tax retirement income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tax rules can also change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When retirement is approaching, tax planning can become increasingly important.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"25_Retirement_Saving_Doesnt_End_the_Day_You_Retire\"><\/span>25. Retirement Saving Doesn&#8217;t End the Day You Retire<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement planning has two phases:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accumulation\"><\/span>Accumulation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You save and invest before retirement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decumulation\"><\/span>Decumulation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You decide how to turn savings into retirement income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eventually questions may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>which account should I withdraw from first?<\/li>\n\n\n\n<li>when should I start CPP?<\/li>\n\n\n\n<li>when should I start OAS?<\/li>\n\n\n\n<li>when should my RRSP become a RRIF?<\/li>\n\n\n\n<li>how much can I withdraw each year?<\/li>\n\n\n\n<li>how will withdrawals affect taxes or income-tested benefits?<\/li>\n\n\n\n<li>should part of my money remain invested?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These decisions can materially affect retirement income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The closer you get to retirement, the more useful individualized financial and tax planning may become.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Practical_Retirement_Savings_Order\"><\/span>A Practical Retirement Savings Order<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There is no mandatory sequence for everyone, but this framework can help organize the process.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Stage<\/th><th>Action<\/th><\/tr><tr><td>1<\/td><td>Build an accurate household budget<\/td><\/tr><tr><td>2<\/td><td>Create a starter emergency fund<\/td><\/tr><tr><td>3<\/td><td>Understand your workplace pension and employer contributions<\/td><\/tr><tr><td>4<\/td><td>Identify high-cost debt<\/td><\/tr><tr><td>5<\/td><td>Check RRSP and TFSA contribution room<\/td><\/tr><tr><td>6<\/td><td>Estimate CPP\/QPP and OAS income<\/td><\/tr><tr><td>7<\/td><td>Calculate your expected retirement-income gap<\/td><\/tr><tr><td>8<\/td><td>Set an affordable contribution amount<\/td><\/tr><tr><td>9<\/td><td>Automate contributions<\/td><\/tr><tr><td>10<\/td><td>Choose investments suitable for your timeline and risk<\/td><\/tr><tr><td>11<\/td><td>Review fees and diversification<\/td><\/tr><tr><td>12<\/td><td>Increase savings as income increases<\/td><\/tr><tr><td>13<\/td><td>Recalculate your retirement plan periodically<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This framework is educational rather than personalized financial advice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your own order may differ depending on debts, income, employer benefits and family circumstances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_Building_a_Retirement_Plan_From_Scratch\"><\/span>Example: Building a Retirement Plan From Scratch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Consider a hypothetical 35-year-old Canadian.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They have:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Take-home income:<\/strong> $4,500 per month<br><strong>Expenses:<\/strong> $4,000 per month<br><strong>Monthly surplus:<\/strong> $500<br><strong>Emergency savings:<\/strong> $2,000<br><strong>No high-interest debt:<\/strong> assumed<br><strong>Workplace plan:<\/strong> employer group RRSP available<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They might decide to:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$250\/month \u2192 retirement savings<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$150\/month \u2192 emergency fund<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$100\/month \u2192 other savings<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After strengthening the emergency fund, they could potentially redirect some of the $150 toward retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is only an illustration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It does not account for investment performance, taxes, inflation or individual financial circumstances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The important lesson is that retirement saving should fit into the wider financial plan rather than compete blindly with every other goal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Often_Should_You_Review_Your_Retirement_Plan\"><\/span>How Often Should You Review Your Retirement Plan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement planning is not a one-time calculation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider reviewing your plan at least periodically and whenever there is a major financial change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>new job<\/li>\n\n\n\n<li>salary increase<\/li>\n\n\n\n<li>job loss<\/li>\n\n\n\n<li>marriage<\/li>\n\n\n\n<li>separation<\/li>\n\n\n\n<li>birth of a child<\/li>\n\n\n\n<li>home purchase<\/li>\n\n\n\n<li>major debt repayment<\/li>\n\n\n\n<li>inheritance<\/li>\n\n\n\n<li>change in pension<\/li>\n\n\n\n<li>significant investment change<\/li>\n\n\n\n<li>approaching retirement<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Review:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Savings_rate\"><\/span>Savings rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">How much are you contributing each year?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Retirement_balances\"><\/span>Retirement balances<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Are your savings moving toward the target?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_mix\"><\/span>Investment mix<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Does it still fit your timeframe and risk tolerance?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pension_estimates\"><\/span>Pension estimates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Have your CPP or employer-pension estimates changed?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Retirement_spending\"><\/span>Retirement spending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Has your expected lifestyle changed?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Debt-2\"><\/span>Debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Will you still have significant debt when you retire?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Small corrections made years in advance are generally easier than discovering a large gap immediately before retirement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Retirement-Saving_Mistakes_to_Avoid\"><\/span>Common Retirement-Saving Mistakes to Avoid<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Waiting_for_the_%E2%80%9Cperfect%E2%80%9D_time\"><\/span>Waiting for the \u201cperfect\u201d time<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement saving doesn&#8217;t need to begin with a large contribution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A smaller sustainable contribution can establish the habit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Assuming_CPP_and_OAS_will_cover_everything\"><\/span>Assuming CPP and OAS will cover everything<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Government pensions can provide an important retirement-income base, but many Canadians may need workplace pensions, savings or investments as well.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ignoring_workplace_benefits\"><\/span>Ignoring workplace benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You may be overlooking pension or employer-contribution opportunities already available through your job.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contributing_without_checking_account_room\"><\/span>Contributing without checking account room<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">RRSP and TFSA contribution limits are individual.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Never assume the national annual dollar limit equals your available personal room.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Saving_while_ignoring_unaffordable_high-cost_debt\"><\/span>Saving while ignoring unaffordable high-cost debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement contributions should be considered as part of your complete financial situation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taking_too_much_investment_risk\"><\/span>Taking too much investment risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement savings should not depend on speculation or guaranteed-return promises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ignoring_investment_fees\"><\/span>Ignoring investment fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Small differences in recurring costs can matter over a long period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Never_updating_the_plan\"><\/span>Never updating the plan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Income, family circumstances, tax rules and retirement goals change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your plan should change with them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Start_With_One_Retirement_Action_This_Month\"><\/span>Start With One Retirement Action This Month<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Retirement planning can involve hundreds of decisions, but you don&#8217;t need to make all of them today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start with one action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>calculate your monthly surplus<\/li>\n\n\n\n<li>check whether your employer has a pension or group RRSP<\/li>\n\n\n\n<li>check your RRSP deduction limit<\/li>\n\n\n\n<li>calculate your TFSA room<\/li>\n\n\n\n<li>review your CPP information<\/li>\n\n\n\n<li>use the Canadian Retirement Income Calculator<\/li>\n\n\n\n<li>set up a small automatic retirement contribution<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Then build from there.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saving $50 or $100 consistently is more useful than creating an elaborate retirement plan and never funding it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The aim is not to find a perfect retirement formula.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is to build a system that grows with your income, adapts to your circumstances and steadily reduces the gap between where you are today and the retirement you want.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more general budgeting and savings guidance, visit CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/financial-tips.html\">Financial Tips for Canadians<\/a> and <a href=\"https:\/\/www.cashwaves.ca\/blog\/money-saving-tips-to-save-money-fast\/\">money-saving tips<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-37e7b535 uagb-faq-icon-row-reverse uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height     \" data-faqtoggle=\"true\" role=\"tablist\"><script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\\\/\\\/www.cashwaves.ca\\\/blog\\\/in-what-manner-to-start-savings-for-retirement\\\/\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"When should I start saving for retirement?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Starting earlier gives your money more time to potentially grow, but it is still worthwhile to begin if you're starting later.<br><br>The practical starting point is when your budget can support retirement contributions without ignoring essential bills and serious financial problems.\"}},{\"@type\":\"Question\",\"name\":\"How much should I save for retirement each month?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"There is no single amount suitable for every Canadian. Estimate your expected retirement expenses, expected CPP\\\/OAS and pension income, then calculate the remaining gap.<br><br>Use the Government of Canada's <a href=\\\"https:\\\/\\\/www.canada.ca\\\/en\\\/services\\\/benefits\\\/publicpensions\\\/cpp\\\/retirement-income-calculator.html\\\">Canadian Retirement Income Calculator<\\\/a> to create a more personalized estimate.\"}},{\"@type\":\"Question\",\"name\":\"Is $100 per month enough for retirement?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"That depends on your age, existing savings, pension income, retirement age, investment performance and desired lifestyle.<br><br>$100 per month is:<br><br><strong>$1,200 per year<\\\/strong><br><br>It may be a useful starting point, but it should not automatically be assumed to be enough to fund your retirement.\"}},{\"@type\":\"Question\",\"name\":\"Should I use an RRSP or TFSA for retirement?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Both may be useful.<br><br>RRSP contributions may create a tax deduction and withdrawals are generally taxable. TFSA contributions don't produce a tax deduction, but qualifying withdrawals are generally tax-free. The appropriate choice depends on your tax situation, contribution room, income and retirement plan\"}},{\"@type\":\"Question\",\"name\":\"What is the 2026 RRSP contribution limit?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The <strong>2026 RRSP dollar limit is $33,810<\\\/strong>.<br><br>However, your personal RRSP deduction limit may be lower or higher when unused contribution room and applicable adjustments are considered.Check your individual CRA information before contributing.\"}},{\"@type\":\"Question\",\"name\":\"What is the TFSA limit for 2026?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The <strong>2026 TFSA annual dollar limit is $7,000<\\\/strong>.<br><br>Your actual available contribution room may be different depending on your previous contributions, withdrawals, unused room and eligibility history.\"}},{\"@type\":\"Question\",\"name\":\"Can I use both an RRSP and a TFSA?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, provided you are eligible and have sufficient contribution room in each account.<br>Using one does not automatically prevent you from using the other.\"}},{\"@type\":\"Question\",\"name\":\"At what age can I start CPP?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"CPP can generally begin as early as <strong>age 60<\\\/strong>, with age 65 being the standard starting age and age 70 being the latest age at which delaying increases the pension.<br><br>Starting earlier generally reduces the monthly benefit, while delaying beyond 65 generally increases it.\"}},{\"@type\":\"Question\",\"name\":\"Can CPP and OAS fully fund my retirement?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"They may provide an important foundation, but they are not designed to automatically cover every person's full retirement lifestyle.<br><br>Workplace pensions and personal savings may also be important.\"}},{\"@type\":\"Question\",\"name\":\"What if I have no workplace pension?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You can still build retirement savings through options such as RRSPs, TFSAs and other personal savings or investments.<br><br>Self-employed Canadians and people without workplace pensions may need to take a more active role in retirement planning.\"}}]}<\/script><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c09cd37b \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">When should I start saving for retirement?<\/span><\/div><div class=\"uagb-faq-content\"><p>Starting earlier gives your money more time to potentially grow, but it is still worthwhile to begin if you&#8217;re starting later.<br><br>The practical starting point is when your budget can support retirement contributions without ignoring essential bills and serious financial problems.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-0dabded2 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">How much should I save for retirement each month?<\/span><\/div><div class=\"uagb-faq-content\"><p>There is no single amount suitable for every Canadian. Estimate your expected retirement expenses, expected CPP\/OAS and pension income, then calculate the remaining gap.<br><br>Use the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/services\/benefits\/publicpensions\/cpp\/retirement-income-calculator.html\" target=\"_blank\" rel=\"noopener\">Canadian Retirement Income Calculator<\/a> to create a more personalized estimate.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d8942cf7 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Is $100 per month enough for retirement?<\/span><\/div><div class=\"uagb-faq-content\"><p>That depends on your age, existing savings, pension income, retirement age, investment performance and desired lifestyle.<br><br>$100 per month is:<br><br><strong>$1,200 per year<\/strong><br><br>It may be a useful starting point, but it should not automatically be assumed to be enough to fund your retirement.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-af3d1355 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Should I use an RRSP or TFSA for retirement?<\/span><\/div><div class=\"uagb-faq-content\"><p>Both may be useful.<br><br>RRSP contributions may create a tax deduction and withdrawals are generally taxable. TFSA contributions don&#8217;t produce a tax deduction, but qualifying withdrawals are generally tax-free. The appropriate choice depends on your tax situation, contribution room, income and retirement plan<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-8328361a \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What is the 2026 RRSP contribution limit?<\/span><\/div><div class=\"uagb-faq-content\"><p>The <strong>2026 RRSP dollar limit is $33,810<\/strong>.<br><br>However, your personal RRSP deduction limit may be lower or higher when unused contribution room and applicable adjustments are considered.Check your individual CRA information before contributing.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-cc084d5c \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What is the TFSA limit for 2026?<\/span><\/div><div class=\"uagb-faq-content\"><p>The <strong>2026 TFSA annual dollar limit is $7,000<\/strong>.<br><br>Your actual available contribution room may be different depending on your previous contributions, withdrawals, unused room and eligibility history.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-59c52148 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Can I use both an RRSP and a TFSA?<\/span><\/div><div class=\"uagb-faq-content\"><p>Yes, provided you are eligible and have sufficient contribution room in each account.<br>Using one does not automatically prevent you from using the other.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-405facf0 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">At what age can I start CPP?<\/span><\/div><div class=\"uagb-faq-content\"><p>CPP can generally begin as early as <strong>age 60<\/strong>, with age 65 being the standard starting age and age 70 being the latest age at which delaying increases the pension.<br><br>Starting earlier generally reduces the monthly benefit, while delaying beyond 65 generally increases it.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c628dfa0 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Can CPP and OAS fully fund my retirement?<\/span><\/div><div class=\"uagb-faq-content\"><p>They may provide an important foundation, but they are not designed to automatically cover every person&#8217;s full retirement lifestyle.<br><br>Workplace pensions and personal savings may also be important.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c1722bd1 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What if I have no workplace pension?<\/span><\/div><div class=\"uagb-faq-content\"><p>You can still build retirement savings through options such as RRSPs, TFSAs and other personal savings or investments.<br><br>Self-employed Canadians and people without workplace pensions may need to take a more active role in retirement planning.<\/p><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Starting Savings For Retirement can feel complicated because retirement planning in Canada involves more than opening an RRSP and depositing money. Your eventual retirement income may come from several sources: The right starting point is therefore not: \u201cHow much should I put into an RRSP?\u201d It is: \u201cHow much income might I need in retirement, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":"","_yoast_wpseo_title":"Savings For Retirement Planning By Little Saving : Cash Waves","_yoast_wpseo_metadesc":"Savings plan for retirement then, starting your retirement saving at a young age. Make a budget that contains retirement deposits.","_yoast_wpseo_focuskw":"Savings For Retirement","rank_math_title":"Savings For Retirement Planning By Little Saving : Cash Waves","rank_math_description":"Savings plan for retirement then, starting your retirement saving at a young age. Make a budget that contains retirement deposits.","rank_math_focus_keyword":"Savings For Retirement","_dpc-meta-title":"","_dpc-meta-description":"","_dpc-keyword":""},"categories":[31],"tags":[37,38,36,35,34],"class_list":["post-148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-tips","tag-average-canadian-savings-by-age","tag-canadian-retirement-planning-spreadsheet","tag-retirement-planning-canada","tag-retirement-sayings","tag-retiring-with-no-savings-in-canada"],"uagb_featured_image_src":{"full":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement.webp",1920,1080,false],"thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-150x150.webp",150,150,true],"medium":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-300x169.webp",300,169,true],"medium_large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-768x432.webp",640,360,true],"large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-1024x576.webp",640,360,true],"1536x1536":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-1536x864.webp",1536,864,true],"2048x2048":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement.webp",1920,1080,false],"post-thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-768x432.webp",768,432,true],"color-blog-full-width":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-1160x653.webp",1160,653,true],"color-blog-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-600x400.webp",600,400,true],"color-blog-post-auto":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-600x338.webp",600,338,true],"color-blog-slider-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Savings-For-Retirement-1200x700.webp",1200,700,true]},"uagb_author_info":{"display_name":false,"author_link":"https:\/\/www.cashwaves.ca\/blog\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Starting Savings For Retirement can feel complicated because retirement planning in Canada involves more than opening an RRSP and depositing money. Your eventual retirement income may come from several sources: The right starting point is therefore not: \u201cHow much should I put into an RRSP?\u201d It is: \u201cHow much income might I need in retirement,&hellip;","_links":{"self":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/comments?post=148"}],"version-history":[{"count":3,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/148\/revisions"}],"predecessor-version":[{"id":499,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/148\/revisions\/499"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media\/348"}],"wp:attachment":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media?parent=148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/categories?post=148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/tags?post=148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}